In August, Kevin Rigg provided an update on the rapid changes regarding the Washington Cares Act (WCA), created to establish the Washington Cares Fund. All signs indicate the WCA continues to move forward toward the January 1, 2022 initiation of mandatory deductions from all Washingtonian’s W-2 income.

For various reasons, many have sought to secure an exemption from the WCA. If you were able to secure a qualifying Long-Term Care (LTC) policy (and it goes into effect before November 1) you might be breathing a sigh of relief, but that would be premature. Obtaining an LTC policy is an essential step, yes, but there’s more work to be done.

There is still one more multi-step process to get through before you can be certain the deduction won’t be applied to your paycheck starting in January.

PAY ATTENTION TO THE EXEMPTION

If you choose to opt-out of the WA Cares Act, you must apply for an exemption. Below is an overview of the process:

1. If you do not already have one, you will need to create a SecureAccess Washington (SAW) account.

2. Once you have confirmed your registration to SAW, you will need to add the Employment Security Department’s (ESD) “Paid Family and Medical Leave” to your SAW services.

3. You will then need to proceed to create your WA Cares Exemption account and apply for the exemption.

4. ESD will review your application and notify you of your eligibility for an exemption from WA Cares coverage.

5. You will NOT need to upload your insurance policy at this time, but you will be required to attest to having obtained it. Make sure you save your insurance policy because you may need to provide it in the future.

6. If your application is approved:

a. You’ll get an exemption approval letter from ESD, at which point you’ll be:

Excluded from the program with no option to re-enroll.
Disqualified from accessing WA Cares benefits in your lifetime.
Required to present your exemption approval letter to all current and future employers. If you fail to present your ESD approval letter, employers will be required to withhold non-refundable WA Cares premiums.

7. Exemptions will take effect the quarter after your application is approved. This means your approval letter needs to be dated no later than December 31, 2021, for you to avoid deductions from your 1st Quarter 2022 W-2 income.

8. Click here for the detailed instructions for applying for an exemption letter provided by the WA Cares Fund.

APPLY YOURSELF

There has been no indication from the state regarding how long the approval process will take. Their website says they “have a team that’s solely dedicated to reviewing applications for exemption from WA Cares, and they have been hard at work since the application opened on Friday, October 1.” That said, if you plan to apply for the exemption, we suggest you do so straightaway; don’t wait until later in the quarter. We believe this will increase the likelihood your approval letter will be provided to you well before the December 31 deadline. Once received, you can submit it to your employer. Then, and only then, you’re allowed a much-awaited (and earned!) sigh of relief.

As always, if you have questions about the WA Cares Act and how it relates to your situation, your planning team is here to help!