Elizabeth Hovde, Policy Analyst from the Washington Policy Center, shared information with CEOtoCEO about the Long Term Care Act (H.B. 1087) that was signed by Governor Inslee on May 13, 2019. The legislation has been moving forward to implementation unnoticed, lost in the challenges of the day-to-day dealing with the pandemic for most employers. However, CEOs and Executives clearly understand the importance of determining how this bill will impact their employee's paychecks.
The topic itself was eagerly anticipated by CEOtoCEO subscribers with many online questions being submitted before, and during, the presentation. H.B. 1087 will impact employee paychecks starting in January, 2022. Elizabeth shed some light on the legislation which has been "flying under the radar" of most employers. This topic is really becoming a hot ticket item.
Washington State is in the process of rolling out the rules and more revisions are expected in the months to come. It is a mandatory payroll tax for a long term care benefit. Employers will need to have a long term care plan in place by November 1, 2021 to give employees an option to opt out of this tax. At this time, we don't know if an exemption will be possible if your business has an existing long term care plan in place.
We were fortunate enough to get Elizabeth's insights about the Bill, what it includes, who benefits most from the bill, who will be eligible, who can opt-out and how, and what is the benefit of the state's new plan.
Elizabeth explained that the benefit is a "maximum rate of $100 per day with a lifetime maximum benefit of $36,500". She added "Anyone who has a parent or family member in long term care knows how insufficient this amount is."
Elizabeth made a complex topic fun and used the opportunity to educate the audience. However, in some respects, there seem to be more questions than answers at this time. As the days grow closer to the Bill's implementation many of the rules are still being developed, so by staying informed, knowledge is power.
Premium Subscribers to CEOtoCEO.com have access to Elizabeth Hovde's hard to find resource materials. A Premium Subscribers also have the ability to watch her presentation, again and again, to glean important information as to how this Bill will impact them and their business.
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