Evergreen staters…say goodbye to your Paycheck! 😜A piece of it, anyway. The new WA Cares tax is kicking in next month, and there’s no way to avoid paying it anymore. Let’s dig in and see what’s going on!
Here are Five Fast Facts on WA Cares Payroll Tax:
- 💰 The Cost - The state will take a new payroll tax of 58 cents on every $100 you earn! This money is for long term health care for workers across the state. If you make $50k, that means you’ll pay almost $300 per year in new taxes. LUCKY YOU!
- 📝 The Law - The law was originally passed in 2019, but a follow up law delayed it by a couple years. There were some exemptions available – and about half a million people got one – but the window to apply for them has now closed. The extra tax kicks in on July 1st. Gonna have to cut back on your Starbucks intake to make up for it! 😱
- 🏥💊 The Benefit - Workers will pay into the system for 10 years before being potentially eligible to get a lifetime benefit of over $36k toward home nursing care. Wait, what? “Potentially?!”
- 👍 The Pros - Supporters say this law will help people who need expensive home health care for themselves or their family members. Currently, most Americans have to pay these costs out of pocket. It’s the most noble of intentions, yes, but you know what they say about those and where they lead…
- 👎 The Cons - Opponents say that it’s not enough to really cover the costs for most low- or middle-income workers, and the resulting lower Paychecks hurt them the worst, too. Plus, they may not end up getting to take advantage of it because they may move out of state or never receive eligibility at all. Well, that figures.
🔥Bottom line: It’s not up for debate any more - it’s already law. The next chance to change it is with the next legislative session next year, and even that would only happen if there’s really strong public pressure on state lawmakers. If you want to know how much you’ll have to pay, check out the WA Cares website here for a calculator.
And then prepare to see your Paycheck shrink.
What do you think of this new tax?
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