Long-Term Care Insurance Association Director Releases Washington State Update
"There is a lot of attention being focused on the Washington imitative," shares Jesse Slome, director of the long-term care insurance organization. "Our goal is to provide periodic updates of key information and share some perspective regarding this important program."
The Long-Term Services and Supports Trust Act (Trust Act) was enacted in 2019 and created a long-term care insurance benefit for all eligible Washington employees that will cover some of the cost of long-term services and supports.
Beginning January 1, 2022, the LTSS Act imposes a mandatory payroll tax of 0.58% on all W-2 income (58 cents per $100 in income), including equity compensation such as stock options and Restricted Stock Units (RSUs). Other investment income, such as interest, dividends, and capital gains, are not subject to the tax. There is also no cap on the payroll tax. For example, someone making $1 million in W-2 income during 2022 will pay $5,800 in payroll taxes.
To read the Washington Long-Term Care Program Update visit the Association's website at https://www.aaltci.org/
Jesse Slome is director and founder of the American Association for Long-Term Care insurance. The organization advocates for the importance of protection and supports insurance professionals who market long-term care solutions. For more information, visit the organization's website at https://www.aaltci.org.