Washington Updates Family & Medical Leave and LTC Premiums For 2022
Posted on November 2, 2021
Washington’s Governor Inslee has announced that the requirement for employers to withhold long-term care premiums for the Washington Cares program by January 1, 2022 will be delayed.
Update:
Governor Jay Inslee has announced a delay in the requirement for employers to withhold LTC premiums from employees’ pay and remit the payments to the state from January 1, 2022 to when the premiums become due in April. The Governor also encourages employers to pause collecting LTC premiums from employees, although he cannot direct them to do so.
Maximum Paid and Family Leave Contributions:
The premium rate for paid family leave coverage will increase to 0.6% of an employee's gross wages, not including tips, and up to $147,000 (the Social Security cap), on January 1, 2022.
- Employers with 50 or more employees are responsible for 26.78% of the total contribution. Employees are responsible for 73.22% of the total contribution.
- Employers with less than 50 employees are not required to pay the employer portion of the premium. However, small employers that choose to pay the employer contribution are eligible for state grants.
Washington Cares Long Term Care Premiums:
Employers in Washington must also collect from, or pay on behalf of, their employees the WA Cares long-term care premiums, starting January 1, 2022. The premium rate is equal to 0.58% of an employee's gross wages, and it does not have a Social Security cap.
Note: The Washington Economic Security Department is updating the Paid Leave reporting system so employers can report for both programs at the same time.
Compliance Recommendations:
Washington employers should withhold the adjusted Paid Family and Medical Leave and WA Cares premiums as applicable. The state has posted additional resources to further assist employers.
