Effective January 1, 2022 the new Washington Cares Fund (formerly known as the WA Long-Term Care Act) will go into effect and result in a new payroll tax for all W-2 eligible employees in the state of Washington. This tax will be used to establish a pool to fund a long-term care benefit for Washingtonians who meet all eligibility requirements as spelled out by the law. There is a provision for employees to apply for a one-time exemption to opt out of paying the tax if they have a pre-existing qualified long-term care plan in effect by November 1, 2021.
Due to this opt out provision and considering some of the limitations of the new law (e.g., benefit is not portable outside of the state) Seattle University has partnered with Trustmark, a respected and highly rated insurer, to offer an opportunity for Seattle University employees to enroll in a personal long-term care (LTC) plan. Enrollment in this plan would allow SU employees to apply for an exemption from the new payroll tax with the state. We encourage all current benefits eligible employees to research the Washington Cares Act and the Trustmark plan to determine which makes the most sense for your long-term care needs.
Benefit-eligible faculty and staff will have the opportunity to enroll in the Trustmark LTC + Life Insurance benefit during a special enrollment period held June 1–June 17, 2021. During the enrollment period you will receive additional information to help aid in your decision as well as access to a portal if you choose to enroll in the Trustmark long-term care plan.
Q) If I am enrolled in the Trustmark LTC benefit, can I opt out of the benefit in the future?
Yes, if you make the decision to opt out of the Trustmark benefit in the future you will need to contact Trustmark directly to cancel your plan.
Q) How do I opt out of the WA Cares Fund if I have Trustmark or have my own LTC insurance?
Those who had private long-term care insurance on or before Nov. 1, 2021, were able to apply for an exemption from the WA Cares Fund from Oct. 1, 2021, until Dec. 31, 2022. This opt-out provision is no longer available.
Q) Does Seattle University contribute to the payroll tax or to the Trustmark premium?
No, the payroll tax applies only to employees and Seattle University is not subsidizing the premiums for the Trustmark plan. Trustmark is offering a lower group rate to SU employees, however.
Q) Does Seattle University profit from allowing Trustmark to market its product to Seattle University employees?
No, Seattle University does not receive any payments or renumeration from this arrangement. It is being provided as a courtesy to our employees.
Q) How much is the WA Cares Fund payroll tax?
The payroll tax is .58% of all W2 earnings. You can estimate your annual contribution to the WA Cares Fund by multiplying your annual salary by .58%
Examples of estimate monthly payroll contributions are below.
|
Annual Salary |
Estimated Monthly Payroll Contribution |
|
|
$50,000 |
$24.17 |
|
|
$100,000 |
$48.33 |
|
|
$150,000 |
$72.50 |
|
|
$200,000 |
$96.67 |
|
|
$300,000 |
$145.00 |
|
|
$400,000 |
$193.33 |
Q) Does the new payroll tax for the WA Cares Fund apply to student workers or temporary employees?
Yes, the new payroll tax will be applied to all W-2 eligible workers in the state, with some limited exceptions.
Q) What if I do not enroll in the
If I do not enroll in the Trustmark plan or purchase my own insurance will I be automatically included in the WA Cares Fund?
Yes, all Washingtonians are included in the WA Cares Fund unless they receive an exemption.
Q) What if I am a student worker or not benefits eligible but want to purchase LTC coverage?
Unfortunately, SU cannot facilitate the open enrollment or premium collection process for non-benefits eligible employees but there are many reputable carries in the marketplace offering private coverage. The policy must be in force prior to November 1, 2021 to qualify for the exemption. For more information here is one site to explore: https://www.ltc-associates.com/
Q) Does Seattle University contribute to the payroll tax?
No, the payroll tax applies only to employees.
Q) Are there any available resources to help me navigate this decision?