The Legislature has enacted two major payroll taxes in the last two years. Payroll taxes fund both a new long-term care insurance program that was enacted this year (the first in the nation) and the paid family and medical leave program that was adopted in 2017.

The long-term care insurance premiums will be 0.58 percent of wages beginning Jan. 1, 2022. Benefits will be available beginning Jan. 1, 2025 for eligible Washingtonians who need help with at least three activities of daily living.

Meanwhile, premiums of 0.4 percent of wages (up to the Social Security wage cap) are already being assessed for the paid family and medical leave program. Benefits will be available beginning Jan. 1, 2020 for eligible workers who need time off for a serious health condition or to care for family members.

Protecting the long-term care insurance and paid family and medical leave revenues for their intended uses will be critical for the sustainability and affordability of the programs.

Read the full report here.