Washington’s new long-term care payroll tax goes into effect on January 1, 2022. Known as the WA Cares Fund, it is a first of its kind program in the nation that aims to provide eligible workers with up to $36,500 in long-term care benefits beginning in 2025. It is paid for by a tax on employees’ wages.

The program, which the Washington Legislature passed in 2019, imposes a payroll premium of $0.58 per $100 in earnings beginning in January. The tax is mandatory, and employees—not the employer—must pay the tax. Employers are not required to contribute.