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Washington Cares Fund

Overview

This guide provides comprehensive guidance on setting up and managing the Washington Cares Fund within ProPay. The Washington Cares Fund is a mandatory long-term care insurance program for Washington state employees, which requires employers to collect and report premiums.

1. Introduction to Washington Cares Fund

The Washington Cares Fund is a state-mandated long-term care insurance program. Beginning July 1, 2025, Washington employers are required to collect premiums from their employees' wages and report them quarterly.

2. Employer Responsibilities

As a Washington employer, you are responsible for:

  • Reporting employees' wages and hours quarterly
  • Collecting and paying premiums
  • Managing employee exemptions
  • Keeping records of exempt employees

3. Setting up Washington Cares Fund in ProPay

To set up the Washington Cares Fund in ProPay:

  1. Go to Employer > Employer Setup > Screen 2 (State and Local Taxes).
  2. Add the Washington Cares Fund in Locality-1.
  3. If Locality-1 is already in use, add it to Locality-2 or the next available Locality field.

4. Calculating and Collecting Premiums

Premium Calculation

The premium for 2025 is 0.58% of an employee's gross wages. To calculate:

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Note: Unlike Paid Family and Medical Leave, there is no maximum cap on wages subject to this premium.

Collection Process

  • Begin collecting premiums from employees on July 1, 2025
  • Deduct premiums from employees' wages each pay period
  • Use the same process as you do for Paid Family and Medical Leave

5. Managing Employee Exemptions

Some employees may be exempt from the Washington Cares Fund. To manage exemptions:

  1. Employees must apply for exemption through the Employment Security Department (ESD).
  2. If approved, employees must provide you with a copy of their ESD approval letter.
  3. Once notified:
    • Stop deducting WA Cares premiums from the employee's wages
    • Keep a copy of the approval letter on file
    • Note the effective date of the exemption

    Important: Exemptions are permanent, and employees cannot opt back in once approved.

    6. Reporting and Paying Premiums

    • Report wages, hours, and premiums quarterly
    • Use the updated Paid Leave reporting system, which will integrate WA Cares reporting
    • Ensure timely submission of reports and payments to avoid penalties

    7. Troubleshooting

    Common Issues and Solutions

    1. Issue: Unable to find Washington Cares Fund in ProPay setup

    Solution: Go to Employer > Employer Setup > Screen 2 (State and Local Taxes) and check all available Locality fields.

    2. Issue: Incorrect premium calculation

    Solution: Double-check the gross wages and ensure you're using the correct percentage (0.58% for 2025).

    3. Issue: Difficulty managing exemptions

    Solution: Create a system to track exemption approval letters and their effective dates.

    8. Additional Resources

    • Official WA Cares Fund Website
    • ProPay Support
    • Washington Employment Security Department

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