Blog

Long-term care program delayed

Gov. Inslee has signed SHB 1732 and ESHB 1733. As adopted, SHB 1732 delays implementation of the state’s long-term care program by 18 months. If employers have withheld any premiums this month, they have 120 days (from the date of collection) to refund them to employees. Long-term care premiums will now be assessed beginning July […]

Paid family and medical leave bill would use federal relief to shore up account

As I wrote yesterday, there are serious concerns about the solvency of Washington’s paid family and medical leave (PFML) program. A Senate committee approved a bill on Wednesday that would add some actuarial requirements to the program. Today, Sen. Lynda Wilson introduced SB 5959. In the short term, the bill would appropriate $125 million from […]

New actuarial requirements have been proposed for the paid family and medical leave program

In response to the emerging paid family and medical leave (PFML) program financial situation, legislators have modified SB 5649. Originally, the bill would have made various benefit changes to the program. Yesterday the Senate Labor, Commerce & Tribal Affairs Committee approved a substitute bill that would make fewer benefit changes and would add several actuarial […]

Paid Family and Medical Leave premium rate may need to increase to 0.8% next year, as program faces a possible cash deficit

At a Ways & Means (W&M) Committee work session on Jan. 18, the Employment Security Department (ESD) provided an update on the paid family and medical leave program. According to the update, “ESD is currently concerned about the fund’s solvency.” They expect the account to have a cash deficit in March or April. (As I’ve […]

SB 5873 would lessen some of the impact of two payroll tax increases

In a policy brief last year, we wrote about how UI taxes work and how they were increasing due to the pandemic. The UI tax rate is made up of three taxes, including a social tax. The social tax is based on the amount by which systemwide benefits exceed systemwide revenue. Generally, the amount of […]

Long-term care program solvency would improve with 18-month delay, but the premium rate would still need to be higher than 0.58%

Yesterday the Appropriations Committee heard HB 1732 and HB 1733. HB 1732 would delay the state’s long-term care (LTC) program by 18 months and make individuals born before 1968 eligible for the program if they pay premiums for at least a year (benefits would be prorated). HB 1733 would add voluntary exemptions for veterans with […]

Could the long-term care tax be delayed for a year?

The Seattle Times reports that Gov. Inslee and Senate Democrats are talking about delaying the long-term care payroll tax. Senate Democratic leadership sent the governor a letter on Wednesday asking him to delay the tax until Jan. 1, 2023. Under current law, the tax is scheduled to begin Jan. 1, 2022. A lawsuit was filed […]

Lawsuits filed over long-term care program and document recording fee surcharge

Lawsuits have been filed over the state’s long-term care program (for which premiums will be paid beginning in January) and a document recording fee surcharge enacted this year (to provide funds for housing programs). Long-Term Care A class action lawsuit asks a federal court to find the long-term care program “unlawful and unenforceable under ERISA, […]

Paid family and medical leave premiums will increase in 2022; this is one of several expected payroll tax increases for next year

According to the Employment Security Department (ESD), premiums for paid family and medical leave will increase to 0.6% beginning Jan. 1, 2022. The premium for this program is paid on gross wages up to the Social Security cap ($147,000 in 2022). The rate can range from 0.1% to 0.6%; if the balance ratio is sufficiently […]

Washington continues to have the nation’s highest workers’ compensation benefit costs

The National Academy of Social Insurance (NASI) reports that workers’ compensation benefit costs per covered worker in Washington were $777.33 in 2019 (up from $769.52 in 2018). This is the highest in the country; the second highest was California, with $713.52 benefits per covered worker. Washington’s workers’ compensation benefit costs are also high as a […]