The Washington Senate Wednesday passed a pair of bills to delay the payroll tax for WA Cares by 18 months and change other parts of the fledgling long-term care program, sending the legislation to Gov. Jay Inslee’s desk.
The passage of bills to address criticisms and concerns over a major Democratic priority comes just three weeks into the 2022 legislative session. The House voted on both pieces of legislation last week. Inslee is expected to sign the bills Friday.
Passed into law in 2019, WA Cares is designed as a social insurance program to help Washingtonians pay for necessities like nursing care or assisted living, transportation and meal preparation and respite for family caregivers. Starting in 2025, eligible beneficiaries could begin claiming up to $36,500 to pay for those needs. The program is to be funded by a .58% payroll tax on workers. That amounts to $290 annually for somebody making $50,000 a year. That tax was set to be collected starting Jan. 1.
But as the program got going last year, a host of concerns came up from people who will pay into WA Cares but will never be eligible for benefits. Under pressure from residents, lawmakers and others, Inslee announced late last month that the state would not collect the payroll taxes withheld by businesses while lawmakers explored changes. One of those changes is House Bill 1732.
Passed on Wednesday, it pushes back the start of the payroll tax until July 1, 2023. Any premiums that have already been collected would be refunded within 120 days under the bill. (Seattle Times)
