Democratic leaders in the state Senate sent a letter to Gov. Jay Inslee last week, requesting he postpone the implementation of the tax for the new state-run long-term care insurance program, WA Cares. Inslee responded he is looking at ways to pause the tax to allow the Legislature to address concerns about the program.
According to AP News, Inslee indicated he doesn’t have authority to take unilateral action, but he’s looking at how to pause the collection of the tax to give legislators time to address issues that have been raised when the legislative session starts in January.
According to the Washington Research Council, as of Dec. 2 more than 430,000 workers in Washington had applied for an exemption. The number exceeds the 300,000 expected, included in the fiscal note for the bill. In addition, the program would only be fully funded through 2075 with the original number of opt-outs, but with the higher rate of exemptions, the solvency of the program could be impacted.
For weeks, business owners have been receiving notices to begin payroll deductions as of Jan. 1, 2022. Gov. Inslee has a closing window on notifying employers.
Posted December 10, 2021