People keep asking if there is a way out of a state payroll tax headed workers’ way in July. It will take 58 cents from every $100 a worker makes. The short answer to the question for most workers in the state is, “Not anymore.”

The long answer is that if you live out of state, you can now seek another type of voluntary exemption. The same is true for some veterans with a service-connected disability, military spouses and people who have non-immigrant work visas. Yes. It’s true. The state planned to tax workers who could never benefit from WA Cares, a long-term-care program created by a law passed by a majority of lawmakers in 2019.

That’s not so hard to see. Many workers who pay taxes into WA Cares beginning in July will not benefit from the program that the state is advertising everywhere I turn. The ads tell Washingtonians how much they are going to appreciate WA Cares assisting with their activities of daily living someday. Don't believe everything you hear. 

Of course, workers have to need long-term-care services for that to be true. They also need to health-qualify and be living in the state still when they need assistance with daily life. Oh, and in most cases, they will have had to pay into WA Cares for 10 or more years, without a break of five or more years, to get any return on investment. And never mind that the maximum amount of money available to those who do end up qualifying won’t be enough for most people’s long-term-care needs. Details, details. Don’t worry about those. WA Cares is good, the state’s marketing campaign tells. It brings peace of mind. 

That’s a dangerous message. People still need to plan for the life need that many people have. It is also just one life need among many others — and that they could have used their earnings toward. 

For those who can still protect their wages from the coming WA Cares tax, I have received feedback on how that exemption process is going. It sounds easy, and determination letters arrive quickly. This new batch of exempted people will need to be sure to show their letters to their employers to avoid the tax, as do others with exemption letters. (The exemption process for people who have private long-term-care insurance has now expired.)

Visit the WA Cares website to learn more about opting out. Read my analysis of the law and why it should be repealed here.