Washington State’s Long Term Care surtax opt-out window is now open. The opt-out application deadline is December 31, 2022. Emerald Advisors has created a step-by-step instructional guide to help Washingtonians complete the opt-out application form and ensure it has been submitted properly. These steps must be completed by each person who has a valid policy and is opting out. During the process, it will be required that you enter your Social Security Number and upload a digital picture of your passport or driver’s license as proof of identity. There is no need to have your policy information at this time.
We are anticipating once the opt-out exemption application has been submitted it may take some time for it to be processed. As expected, the system is experiencing a high volume of Washingtonians creating accounts. Once the exemption has been approved it will then be the individual’s responsibility to notify your employer and provide them with your exemption form. In the interim period, the Washington State Cares Act LTC surtax will be applied per quarter until official notification of exemption has been granted. This means when the payroll tax starts 1/1/2022, all W2 earners will pay the surtax until an application has been processed and approved. Payroll taxes will go through the end of each quarter (ie. approval letter dated 1/21/2022, payroll taxes will be withheld until 3/31/2022).
We suggest each individual retain a copy of your exemption and present a copy to your employer. If you leave your current job, it will be your responsibility to submit the exemption to any future employers.
It’s important to reiterate that the window to submit opt-out forms is now open until December 31, 2022. If you have a valid policy but fail to submit the opt-out form to the ESD for approval during the window you will not be opted-out and will automatically be opted-in and required to pay the surtax on all W2 income, regardless of your policy.
If you have questions please feel free to email our office at email@example.com.