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 are the employee eligibility criteria

• How to override the legislative rate and annual wage limit

• How to opt out your organization

• How to out out individual employees

• 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.

What are the employee eligibility criteria

To be eligible for the Washington LTC tax, an employee must have:

1. Have a valid tax card with a tax reporting unit (TRU) association

2. Washington identified as their state unemployment insurance (SUI) state on one of these cards

   • Tax Jurisdictions

   • Tax Withholding

How to override the legislative rate and annual wage limit

To override the legislative tax withholding rate and annual wage limit:

1. To change this tax at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   To override at TRU level, start the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. Open the calculation card for editing.

3. In Component Groups, select the Washington regional component.

   Create it if it doesn't exist.

4. In Calculation Components, select State LTC.

   Create it if it doesn't exist.

5. Click Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. To change the tax rate, search for and select Long term care insurance employee percentage.

   To change the wage limit, search for and select Long term care insurance wage limit.

8. Set the new value, and click OK.

9. Save your work.

How to opt out your organization

To opt out your organization:

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. Open the calculation card for editing.

3. In Component Groups, select the Washington regional component.

4. In Calculation Components, select State LTC.

5. Select Enterable Calculation Values on the Calculation Card.

6. Click Create.

7. Search for and select Employee tax exemption.

8. In Value, select the appropriate exemption status.

9. Save your work.

How to exclude individual employees

To exclude an individual employee from this tax:

1. Open the person's Tax Withholding card for editing.

2. Choose the Washington regional component for editing.

3. In Withholding Exemption, select the appropriate exemption status for Long Term Care Insurance.

4. Save your work.

How to 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

What wage basis rules it follows

When configuring the wage basis rules for Washington LTC, find them under State LTC in the Component Group Rules task.

How to include this tax in the quarterly tax-filing extract

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

• Long Term Care Insurance on the person's Tax Withholding Card is set to Exempt from wage accumulation and tax withholding.

• At least one of these balances are non-zero.

  • Long Term Care Withheld (quarter-to-date dimension)

  • Long Term Care Withheld (year-to-date dimension)

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