On April 21, 2021, Governor Inslee signed House Bill 1323, creating a new long-term care trust program. Beginning in January 2022, all employees will be paying an additional payroll tax — 0.58% of all wages. The tax proceeds will be used to fund a public insurance program for long-term services and support. While January 2022 seems a distant time, there are high-stakes earlier deadlines regarding this legislation.
Employees will need to understand the value of the long-term trust, understand the options to use the trust account, and understand the relative cost after paying into the system.
Employees will also need to understand that if they invest in an individual long-term care account or trust, then the legislation offers a one-time window for employees to opt out of the state mandatory payroll tax. The individual long-term care policy must be in place by November 1, 2021. Rules regarding the process to opt out are not yet finalized, so we cannot predict when the opt-out must be in place.
Olympia School District is partnering with NW Benefit Advisors to assist us with the communications and education regarding the new law.
This is one of those times where the stakes are high. All employees of the school district will be subject to the payroll tax, we all need to understand the State’s plan, and the payroll tax and employee options. Excluding the precious weeks of summer, the fall deadlines are right around the corner.
NW Benefit Advisors will conduct workshops to explain the new payroll tax, what options employees have, and important deadlines:
- Tuesday, May 4 3:30-4:30 pm;
- Wednesday, May 5 3:30-4:30 pm;
- Thursday, May 6 3:30-4:30 and 6-7 pm.
NW Benefit Advisors will also conduct workshops to give employees an overview of long-term care insurance, the costs of private insurance, and the deadlines to opt out of the payroll tax:
- Tuesday, May 11 3:30-4:30 pm;
- Wednesday, May 12 3:30-4:30 pm;
- Thursday, May 13 3:30-4:30 and 6-7 pm.
CLICK Here to access NW Benefit Advisors website with information on:
- Attend a workshop.
- Find information on House Bill 1323 and Long-Term Care Insurance
- Schedule an appointment with NW Benefit Advisors to discuss your personalized plan.
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