Annual Tax Rate Notices

The Employment Security Department (ESD) will soon begin mailing employer annual tax rate notices for 2022. For 2022, the flat social tax rate is capped at .75% and the taxable wage base is $62,500. If you use a third-party payroll company, be sure to give them a copy of your 2022 tax rate notice to avoid under or overpaying your taxes. Similarly, if you do not contract a third-party tax service, you should update your tax rates for 2022 to avoid paying an incorrect tax amount.

Long-Term Services and Supports Exemptions

The Long-Term Services and Supports (LTSS) Program is on track for implementation on Jan. 1, 2022, and with the January 1 withholding date quickly approaching, individuals that have secured private long-term care insurance should apply for an exemption soon to avoid having a premium assessed on their wages.

To opt-out of the program, employees must apply to the ESD for an exemption. If approved, ESD will provide a letter of exemption approval. Employers are responsible from withholding the premium from an employee’s wages unless the employee provides a copy of a letter of exemption approval from ESD.

Please note that ESD has issued a statement guaranteeing the processing of employee exemption applications before the January 1 withholding date, but only if employees submit their exemption applications by December 2. Beginning December 2, ESD cannot guarantee that applications will be processed in time before withholding begins. This means that despite securing private long-term care coverage and qualifying for an exemption, if employees wait until on or after December 2 to apply for an exemption, they may not receive an approval letter before the withholding date begins and employers will begin assessing the .58% premium on employee wages.

Learn More

To learn more about Washington state’s LTSS Trust Program, visit WSDA’s website as well as www.wacaresfund.wa.gov.  

Questions?

If you have specific LTSS Program questions, you may contact a WA Care program manager here.