New WA long-term care tax delayed so Legislature can fix it

Inslee’s order is designed to halt the program temporarily, until the Legislature can formally vote to delay it.

Such action appears imminent. Top legislative leaders said they plan to act swiftly to delay the program — and its payroll tax collections — once they convene for a new legislative session Jan. 10. 

Still, some employers, including the state of Washington, intend to withhold the payroll tax from employees until the Legislature takes that official vote, Inslee’s office said.

The move to delay the long-term care program comes after more than 450,000 people applied to opt out of the new system. Insurance programs require a certain level of participation to break even.

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