Washington Long-Term Care

Washington Long Term Care Insurance (LTC) is a tax for employees subject to Washington state unemployment insurance (SUI).

When implementing this tax, there are some areas you should consider.

• What is the employee eligibility criteria

• How to override the tax rate

• How to opt an employee out of this tax

• How to cost LTC taxes

• What wage basis rules it follows

• How to include the WALTC tax code record in the quarterly tax-filing extract

See the following sections for details.

Employee Eligibility Criteria

The payroll process automatically takes this tax on employees when they're subject to Washington SUI.

Override the Tax Rate

To override the tax withholding rate:

1. 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.

2. In Component Groups, select the Washington state regional node.

3. In Calculation Components, select State LTC.

   Create it if it doesn't already exist.

   1. Select the Washington regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State LTC.

   4. Select WA.

4. Click Enterable Calculation Values on the Calculation Card.

5. Add the LTC Employee Percentage component, and set the appropriate value.

6. Save your work.

Opt Out Your Organization

To opt your organization out of this tax:

1. 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.

2. In Component Groups, choose the Washington state regional node.

3. In Calculation Components, choose State LTC.

   Create it if it doesn't already exist.

   1. Select the Washington regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State LTC.

   4. Select WA.

4. Select Enterable Calculation Values on the Calculation Card.

5. Choose Self Adjust Method for Long Term Care Insurance.

6. In Value, enter Bypass Collection.

7. Save your work.

Exclude Individual Employees

To exclude an individual employee from this tax:

1. Use the Calculation Cards task to open the person's Tax Withholding card for editing.

2. Choose the Washington state regional node.

3. In Withholding Exemption, choose Yes for Exempt from Long Term Care Insurance.

Cost the Tax

To process LTC taxes, cost these predefined elements using the LTC Tax Calculated input value.

• Long Term Care Employee Tax

• 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 LTC wage basis rules. These are the same as the Washington Paid Family Leave wage basis rules. For further info, see Washington Paid Family Leave in the Help Center.

Include in Quarterly Tax-Filing Extract

For the extract to include a WALTC tax code record, one or more of these conditions must be true.

• Exempt from Long Term Care field on the person's Tax Withholding Card is set to Yes.

• Washington Long Term Care quarter-to-date or year-to-date balances are non-zero.

• Washington SUI employer taxable balance is greater than $0.

Include in Quarterly Tax-Filing Extract

For the extract to include a WALTC tax code record, one or more of these conditions must be true.

• Exempt from Long Term Care field on the person's Tax Withholding Card is set to Yes.

• Washington Long Term Care quarter-to-date or year-to-date balances are non-zero.

• Washington SUI employer taxable balance is greater than $0.