WA Cares Fund
Last updated: December 9, 2025
Overview
The WA Cares Fund is a mandatory long-term care insurance benefit established by Washington state law. Starting July 1, 2026, eligible beneficiaries can use benefit units to purchase long-term care services which may include professional care, equipment, home safety evaluations, and/or compensation for family members who provide care.
The WA Cares Fund is not a leave program, but it can be used at the same time as a leave, including Paid Family & Medical Leave (PFML), and insurance, including long-term disability insurance.
Mandatory employee payroll deductions
The WA Cares Fund is funded entirely by premiums paid by the worker. The premium is set by state law at 0.58% of gross wages, or $0.58 per $100. For example, if an employee earns $50,000 annually, the total annual premium is $290 or $12.08 per paycheck. Income to which WA Cares premiums are applied is not capped at the taxable maximum for Social Security.
Paid time off, including vacation, sick time off, and associated cash outs, are included in wages except when those are considered Paid Family & Medical Leave supplemental benefit payments provided by UW. Premiums are collected on employees whose work is located in Washington State.
Benefit amount
The benefit provided is based on the number of “benefit units” that an employee has earned. Each benefit unit will equal $100 in 2026, with units increasing in value as time goes on. The initial maximum value will equal $36,500 in 2026.
Program eligibility
To be eligible for WA Cares Fund benefits, an employee must be over the age of 18, reside in the state of Washington or have elected to keep coverage when they relocate out-of-state, and must have worked and contributed to the fund for:
- A total of 10 years; or
- Three of the last six years at the time you apply for the WA Cares Fund benefit; and
- Worked at least 500 hours per year.
Near retirees born before January 1, 1968, will earn lifetime access to a partial benefit (10% of the full benefit for each year they work 500 or more hours). Near retirees can also access the full benefit amount by meeting requirements for one of the other pathways.
Exemptions from the WA Cares Fund
Employees may apply for a voluntary permanent or conditional exemption from the WA Cares Fund in accordance with the criteria established in RCW 50B.04.055. An employee with a permanent exemption from the WA Cares Fund premium is ineligible from receiving benefits under the program unless they voluntarily rescind their exemption status. An employee with a conditional exemption does not contribute premiums to the program while their conditional exemption is in effect.
Applications for an exemption are submitted to the Employment Security Department (ESD) and approved or denied by ESD based on criteria established in state law. Applications are available on an ongoing basis.
Employees with an approved permanent or conditional exemption must inform UW of their exemption and provide a copy of their ESD exemption letter to ensure premiums are not deducted from their paycheck.
The University is required to maintain records related to the WA Cares Act premium assessments for six years.
Permanent exemption based on the employee’s status
An employee may apply for a voluntary permanent exemption from the WA Cares Fund if the employee is:
- A veteran with a 70% or higher service-connected disability. If approved by ESD, they will receive permanent exemption from the WA Cares Fund.
Conditional exemption based on the employee’s status
An employee may apply for a voluntary conditional exemption if the employee:
- Is employed by an employer in Washington but maintains a permanent primary residence outside of Washington state;
- is an active duty service member in the United States armed forces whether deployed or stationed within or outside of Washington, who is concurrently engaged in off-duty civilian employment as an employee of an employer.
- is a spouse or registered domestic partner of an active-duty military member whether deployed or stationed within or outside of Washington.
If there is a change in the circumstances that qualified an employee for an exemption, the employee must notify ESD and the UW within 90 days of the change and UW must begin collecting premiums as required by state law. Individuals will be liable for premiums owed if they experience a change in status but do not inform ESD and UW. A change in status would include changing a permanent residence to within Washington state from out-of-state, having a spouse or registered domestic partner leave service in military and/or the marriage or domestic registered partnership ending.
Automatic exemption for an employee who holds a nonimmigrant visa
Starting January 1, 2026, an employee who holds a nonimmigrant visa for temporary workers is considered automatically exempt from the program, unless the employee notifies UW that they would like to participate.
If an employee notifies UW that they would like to participate in the program, participation begins and premiums must be assessed:
- At employment commencement for new employees; or
- The quarter immediately following the notification.
For payroll to conduct the necessary tax assessments, only employees with a non-expired visa recorded in their Workday profile will qualify for this exemption. If the visa on record expires, or if the employee becomes a permanent resident or citizen, the exemption will no longer apply, and the tax will be withheld.
For more information, view ESD’s Exemptions webpage.
Out-of-state participation
Beginning July 1, 2026, employees who relocate outside of Washington may elect to continue to participate in the program but may not withdraw from the program after electing coverage. To become an out-of-state participant, workers must contribute to WA Cares for at least three years and must opt in (by notifying ESD) within a year of leaving Washington state.
ESD will cancel the out-of-state elective coverage if the participant fails to make the required payments or submit the required reports.
Rescinding a voluntary exemption
From January 1, 2026, through June 30, 2028, an employee who has received a permanent exemption may rescind their exemption and participate in the program if they are otherwise eligible.
Applying for a WA Cares Fund premium exemption or to rescind a voluntary exemption and notifying UW of your approval letter
- Follow the instructions provided by the WA Cares Fund to apply for an exemption or rescind a previous exemption. ESD will review your application and, if approved, ESD will provide you with an approval letter that includes an effective date of your exemption or rescission approval. (The approval letter is different from status update emails from ESD you may receive.).
- Notify UW of your ESD approval letter by completing the Payroll secure webform and attaching a copy of your approval letter. It is the employee’s responsibility to notify UW of an approved exemption or rescission.
Exemptions and exemption recissions will take effect in the calendar quarter after your application is approved, and only if you notify UW of your approval letter. Failure to notify UW of an exemption means non-refundable premiums might be deducted after an exemption effective date.
Frequently asked questions
How do I verify that I have an approved exemption and have notified UW?
To verify that you have an approved ESD exemption, log-into your Secure Access Washington account and select “Paid Family and Medical Leave” to view your WA Cares exemption.
To verify that you notified UW Payroll of an approved exemption, check your email for a message confirming your exemption was processed. If you’re unsure whether you submitted your letter to Payroll, review your request history in My Requests; be sure to select the “Click here to include closed records” button at the top of My Requests.
When is an employee entitled to a refund of premiums?
If UW has made an error and deducts premiums from your paycheck after you have provided notice of your exemption status, or if you are automatically exempt from the program and have not chosen to participate, the incorrectly deducted premiums will be refunded.
I plan on retiring in the next few years so I might not meet the requirements to qualify for benefits. Does the payroll deduction still apply to me?
Yes, the premium will be deducted even if you plan on retiring within the next few years and/or before you meet the requirements to qualify for benefits.
Will UW provide long-term care insurance for employees to purchase as an alternative to the WA Cares Fund?
As a Washington state public employer, UW is only authorized to provide the insurance benefits that are offered through the state of Washington Health Care Authority (HCA) and set by the Public Employees Benefits Board (PEBB). Currently there are no long-term care insurances provided through either PEBB or the HCA that would be available to UW employees.
Additional resources
- ESD’s WA Cares Fund website
- ESD’s How to apply for your benefit webpage
- Chapter 50B.04 RCW
- Chapter 192-900 WAC