New Mandatory Payroll Tax Coming Soon: Here's what you need to know

WACOPS’ subsidiary, Public Safety Employees Insurance, Inc is working with its new broker, LBG Advisors, to make sure you have an alternative to the State mandated Long Term Health Care Trust.  In 2019, the Washington State Legislature passed the Long-Term Health Care Trust.  In short, the trust would be funded through mandatory payroll deductions, and those that vest in the program before they leave employment would be entitled to a very small ($100 per day for 365 days) insurance for their long-term care needs.  The State developed the program because most people are not covered for their long-term care needs and future burdens on the Medicaid system is expected to be financially crushing to the State. 

You have options!  WACOPS, along with employers and our friends at the WSCFF worked to get an amendment to the Trust this session.  The Trust will still go into effect in January of 2022, but employees will be able to opt out of the mandatory tax if they have a bone fide alternative long term care policy in place.  You will be required to opt out by November of 2021.  There are things to consider before you just jump to opting out and you will need to give any alternative serious consideration.  Even so, we believe you should have options and you should be the one to decide what long term care program is going to be best for you. 

Please make note of this and watch for more information to come soon.  PSEII and its broker are looking for the best alternative with the greatest availability for law enforcement.   

For some additional information (remember, this is still a developing issue) please visit the new PSEII webpage at: What's new? - PSEII BENEFITS.  Watch for more information in the coming weeks. 

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