Q1: Can I opt out of the WA Cares tax using a new private insurance policy today?
No. The permanent exemption window for purchasing private long-term care insurance closed on December 31, 2022. There is currently no option to opt out using a newly purchased private policy.
Q2: Are bonuses and stock options subject to the 0.58% payroll tax?
Yes. The premium applies to all components of your gross W-2 earnings, including performance bonuses, commissions, and value derived from vested equity allocations.
Q3: How does the program track my working hours each year?
Employers report hours worked and gross compensation quarterly to the Employment Security Department (ESD), which manages individual vesting histories.
Q4: Can family members be compensated as caregivers under the program?
Yes. Approved benefit uses include compensating family members who complete the state's required caregiver training courses to provide home assistance.
Q5: Is the benefit paid out as a lump-sum cash deposit?
No. The program operates on a direct-to-provider payment system, paying approved vendors and care professionals directly for services rendered.