WA Cares Act: What Is the Washington Cares Fund?

The Washington Cares Fund is the latest state insurance program intended to provide long-term health care benefits. The WA Cares Act aims to create affordable, long-term care insurance benefits, for those who are eligible to use the program. For employers, however, this means additional Washington payroll taxes and deductions.

UPDATE 07.30.26: The Washington Cares Fund officially began payouts in July 2026. 

The Washington Cares Fund (WA Cares) provides employees in Washington a way to access long-term healthcare benefits, since most long-term care is not covered by Medicare or health insurance.

Here is what employers need to know:

What Is the WA Cares Fund?

Washington Cares is a public, long-term health care insurance program in which employees contribute a small percentage of their income in order to be able to access long-term care benefits when they need them. 

How Does it Work?

All full-time, part-time, and temporary workers in Washington began making contributions in July 2023 in the amount of 0.58% of each paycheck, unless they have an approved exemption.

Before being able to take advantage of benefits, employees are generally required to contribute for 10 years. However, there are other ways to qualify for benefits. 

Also, in order to access benefits once contribution or other requirements are met, you must have a need for care that requires assistance with activities of daily living. This is because Washington Cares is an insurance program, not a savings account. 

Specifically, program members must need assistance with three or more activities of daily living. Such activities can include but are not limited to:

• Managing medication
• Bed mobility
• General mobility
• Bathing
• Using the restroom
  
• Transferring
  
• Eating

Activities that require supervision in order to complete them, such as monitoring, cueing, or set-up assistance, also count.

Eligible employees with a qualifying need for care can then apply for their benefits online in three easy steps:

1. Create an account: First create an account with a username and password. Those creating an account for a family member can do so as an authorized representative.

2. Submit an application: Applications include a few questions regarding care needs, which are then reviewed.
3. Discuss your care needs: You'll then schedule a time to talk with a representative about care needs either in-person or via phone call. You will also select how you wish to receive your determination (email, text, mail).

Once a determination is made, employees will receive a notice in the manner of their choosing which indicates whether they qualify for benefits.

Once someone is approved to start using benefits, they can choose how to use them, whether that's finding an in-home care provider, using specific services, or making the home safer. Washington Cares also pays providers on behalf of the program member. All you need to do is find a covered provider, approve the authorizations, and the rest of the process will be taken care of. Benefit balances can be accessed from the account created during application.

Exemptions from Washington Cares Fund

There are two types of exemptions to Washington Cares Fund contributions.

The first are automatic exemptions. These include:

• Federal employees working in Washington

• Retired and non-working residents of Washington
• Temporary workers on a non-immigrant visa

Additionally, tribal businesses and self-employed individuals must opt in to the program in order to contribute.

The other type of exemption is regarded as a voluntary exemption. Those who may apply for a voluntary exemption include:

• Workers whose permanent home address is outside Washington

• Spouses or registered domestic partners of active-duty military members
• Veterans with 70% or higher service-connected disabilities
• Active-duty service members with off-duty civilian employment

It's worth noting that those who have voluntary exemptions have until June 30th, 2028 to cancel their exemption and opt in to the program.

Those who apply for and receive exemptions will receive an approval letter, which must be provided to all current and future employers. A copy may be provided. Employers that receive an exemption letter must stop withholding premiums. Employers are not required to return any withheld premiums collected after your exemption takes effect if the letter is not provided in time.

Ways to Qualify for Benefits

In order to qualify for benefits, employees must satisfy one of three "pathways".

Permanent Pathway

The first pathway is called the "Permanent Pathway". This pathway provides full benefits, and has the purpose of providing lifetime access for workers who contribute to the fund over the long term.

In order to access benefits through this pathway, employees must contribute to the program for at least 10 years.

Temporary Pathway

The next pathway is called the "Temporary Pathway". This pathway also provides full benefits and has the purpose of providing temporary access for workers who need benefits, have contributed recently, but haven’t yet earned lifetime access to benefits.

In order to access benefits through this pathway, employees must have contributed for at least three of the past six years at the time they apply for benefits. 

Transition Pathway

The last pathway is called the "Transition Pathway". This pathway provides a pro-rated benefit amount, and has the purpose of providing benefits to those who were near retirement when the program launched and can't contribute for the full 10 years to earn lifetime access.

Those who qualify for lifetime access through this pathway will receive a pro-rated amount of the benefits. Specifically, for each year the employee contributes they will earn 10% of the full benefit amount. So if someone contributes for five years before retiring, they would have access to 50% of the full benefit amount.

Lastly, in order to qualify through this pathway, an employee must have been born before January 1st, 1968 and have contributed to the program for at least one full year. 

Benefits Information

Currently, the lifetime benefit amount is $36,500. However, this will be adjusted over time to account for inflation.

Benefits can generally be used for the following services or costs.

At-home services:

• In-home personal care

• Housework and errands
• Home-delivered meals
• Yardwork and snow removal

Safety and accessibility:

• Adaptive equipment and technology

• Home safety evaluation
• Home modifications
• Personal emergency response systems

Services in your community:

• Adult day services

• Transportation

Health and wellness:

• Care transition coordination

• Professional nursing services

Family support:

• Dementia and behavioral supports

• Respite for family caregivers
• Education and consultation

Facility care:

• Assisted living facility

• Adult family home
• Memory care services
• Nursing home

What Should Employers Know?

Employers have three key responsibilities regarding Washington Cares, including:

• Calculating Premiums

• Collecting Premiums
• Tracking Employee Exemptions

Employers who are struggling with their responsibilities under Washington Cares may want to consider reaching out to a Washington Payroll Company with experience handling premium deductions in the state.

Calculating Premiums

Employers are required to calculate the total premium amount for each employee, which is 0.58% of an employee’s gross wages.

It's important to note that unlike Washington Paid Leave, premium contributions for Washington Cares are not capped at the taxable maximum for Social Security.

Employers can access a free premium calculator on the Washington Cares website.

Collecting Premiums

Employers were required to begin collecting premiums July 1st, 2023. Employers are now responsible for reporting employee wages and hours every quarter, as well as paying premiums every quarter. 

Premiums are collected the same way as Washington Paid Leave, and can be reported at the same time, using the same report. 

Employers are not required to pay any portion of the premium, which is fully funded by employees. However, employers may choose to do so as an optional employee benefit.

The Washington Cares Fund encourages employers to label these premium deductions on paychecks as “WA Cares Fund” or “WA Cares LTC.”

Tracking Employee Exemptions

Lastly, employers are responsible for keeping track of any employees who apply for and receive a voluntary exemption. However, it is still the employee's responsibility to apply for and, if approved, notify employers of their exemption by providing a copy of their approval letter.

Once notified of an exemption, employers must keep a copy of the employee's exemption approval letter on file, and stop deducting premiums. 

Employees are also responsible for notifying their employer of any changes to their exemption status. Failure to do so can result in required back-payment of premiums (paid by the employee) and additional penalties.

Frequently Asked Questions (FAQ)

What is the Washington Cares Fund?

The Washington Cares Fund is a state-run long-term care insurance program that provides eligible employees with up to $36,500 in lifetime benefits for qualifying long-term care services. The benefit amount is adjusted annually for inflation.

When did WA Cares payroll deductions begin?

Premium collections for the Washington Cares Fund began in July 2023. Employers are responsible for collecting payroll deductions, and employees contribute through a Washington payroll tax to fund the program.

When can employees begin using WA Cares benefits?

Eligible employees can begin accessing WA Cares benefits starting in July 2026, provided they meet the program's eligibility requirements.

What services does the WA Cares Fund cover?

The WA Cares Fund can be used for a variety of long-term care services and supports, including professional in-home care or care in assisted living, adult family homes, or nursing homes, medical equipment such as hearing devices and medication reminder devices, home safety evaluations, training and support for family caregivers, home-delivered meals, care transition coordination, memory care services, home modifications, such as wheelchair ramps, personal emergency response systems, and respite care for family caregivers.

Can self-employed individuals participate in WA Cares?

Yes. Self-employed individuals are not automatically required to participate but may opt into the program if they choose. Once enrolled, they are responsible for paying their own premiums.

Get Help with Washington Cares Act

With numerous changes to the legislation, it is possible that you may be left a bit confused about what your responsibilities are under the new program. 

Employers looking for help with the Washington Cares Act should contact us today, as well as ensure that they have the proper payroll solution in place to account for the payroll deduction. 

In addition to Washington Cares, payroll software can help with all kinds of Washington payroll laws and compliance, such as Washington Minimum Wage Law.

Watch our payroll demo video below to learn more about how our software can help manage your premium collections and payroll deductions.