Washington Long-Term Care
Washington Long Term Care Insurance (LTC) is a tax for employees subject to Washington state unemployment insurance (SUI).
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What is the employee eligibility criteria
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How to override the tax rate
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How to opt an employee out of this tax
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How to cost LTC taxes
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What wage basis rules it follows
Employee Eligibility Criteria
The payroll process automatically takes this tax on employees when they're subject to Washington SUI.
Override the Tax Rate
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To change this tax at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.
Use Legal Reporting Unit Calculation Cards task to change this tax at the tax reporting unit (TRU) level.
Settings at the TRU level override those at the PSU level.
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In Component Groups, select the Washington state regional node.
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In Calculation Components, select State LTC.
Create it if it doesn't already exist.-
Select the Washington regional node in Component Groups.
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Click Create in Calculation Components.
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In Create Calculation Component, select State LTC.
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Select WA.
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Click Enterable Calculation Values on the Calculation Card.
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Add the LTC Employee Percentage component, and set the appropriate value.
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Save your work.
Opt Out Your Organization
To opt your organization out of this tax:
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To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.
To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.
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In Component Groups, choose the Washington state regional node.
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In Calculation Components, choose State LTC.
Create it if it doesn't already exist.
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Select the Washington regional node in Component Groups.
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Click Create in Calculation Components.
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In Create Calculation Component, select State LTC.
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Select WA.
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Select Enterable Calculation Values on the Calculation Card.
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Choose Exempt from Long Term Care Insurance.
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In Value, enter
Yes
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Save your work.
Exclude Individual Employees
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Use the Calculation Cards task to open the person's Tax Withholding card for editing.
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Choose the Washington state regional node.
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In Withholding Exemption, choose Yes for Exempt from Long Term Care Insurance.
Cost the Tax
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Long Term Care Employee Tax
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Long Term Care Employee Tax Not Taken
For further info, see Payroll Costing of Elements for the US in the Help Center.
Wage Basis Rules
The Washington LTC rules follow Washington Paid Family Leave wage basis rules.