Changes happening to your benefits and taxes in January
Several changes take place this January that will result in adjustments to deductions on your paycheck. Use the information below to help you plan for 2022:
Pre-tax deductions associated with Open Enrollment elections beginning January 10
If you elected to have a pre-tax spending account for 2022 during Open Enrollment in November, you will see your deductions begin on your January 10 paycheck. The deduction amount will be dependent on your elected annual contribution. Learn how to review your benefit elections by visiting the ISC website.
State mandated deductions beginning January 10, 2022
WA Cares Fund deduction
Deductions for the WA Cares Fund begin January 10 as required by state law employees whose work is performed in the state of Washington. WA Cares is the new state long-term care (LTC) support and services program that was put in place by the Washington State Legislature. Once vested in the program, you will be able to seek reimbursement for eligible long-term care expenses. To learn more, visit the Washington WA Cares Fund website where you can calculate how much your 2022 WA Cares premiums will be.
Example: An employee earning $60,000 per year will have 0.58% ($14.50 per paycheck) of their gross salary deducted for WA Cares premiums.
Paid Family Medical Leave (PFML) premium rate increase
Employees whose work is performed in the state of Washington will see the premium rate for the PFML program increase from 0.4% to 0.6% of the employee’s gross wages up to $147,000 of taxable income. This increase in premium rate is paired with a change in employee-employer split for PFML, with the employee’s contribution increasing to 73.22%. Visit the Washington Paid Family & Medical Leave website to calculate your 2022 PFML premium contribution.
Example: An employee making $60,000 per year will have their PFML premium increase from $6.33 per paycheck in 2021 to $10.98 per paycheck in 2022.
State mandated deductions beginning January 25, 2022
Long-Term Disability premiums change January 25, 2022
In 2022, all benefits-eligible employees will be automatically enrolled in employee-paid long-term disability (LTD) insurance. LTD insurance is a salary replacement benefit that replaces a portion of your income if you become disabled. Every eligible employee who has not waived coverage and was not previously enrolled in optional LTD, will be enrolled in employee-paid LTD and will see premium deductions begin on January 25, 2022. For those who were already enrolled in optional LTD, the 2022 rate change will be reflected on your January 25, 2022 paycheck. To find your premium, use the premium calculator on The Standard’s website. Learn more on the Health Care Authority Long-term disability insurance premiums webpage. Find instructions on how to cancel or change coverage at any time on UWHR’s Long term disability insurance webpage.
Example 1: Employee is a UWRP participant, already enrolled in Optional LTD with a 90-day waiting period and earns $60,000 per year.
On January 25, this employee will see their premium rate change from 0.72% to 0.59%, which adjusts their deduction from $18.00 to $14.75 per paycheck.
Example 2: Employee is a UWRP participant, already in Optional LTD with a 180-day waiting period and earns $60,000 per year.
On January 25, this employee will see their premium rate change from 0.32% to 0.59% as they transition to the 90-day waiting period with 60% coverage. This will adjust their deduction from $8.00 to $14.75 per paycheck.
Example 3: Employee is a DRS participant, not enrolled in Optional LTD during 2021, and earns $60,000 per year.
On January 25, this employee will transition to the 90-day waiting period with 60% coverage. They will see a new deduction on their paycheck reflecting the premium rate of 0.47%, which is equal to $11.75 per paycheck.
Life insurance premium increase
If you are enrolled in PEBB Optional Life Insurance for yourself and/or your spouse, you will see a rate increase on your January 25, 2022 paycheck. Learn more about this rate change on the HCA Life insurance webpage. Contact MetLife at 1-866-548-7139 with questions.
Resources
We acknowledge these state-required changes will reduce your take home pay so we are providing some resources to help support you with budgeting and financial planning.
Schedule a free Fidelity or TIAA financial consultation, click here to learn more and schedule your appointment.
Contact UW CareLink (866-598-3978) and speak with a financial advisor for free. You can also inquire about government assistance programs. Learn more on the UW CareLink website.
The Whole U regularly offers financial planning webinars and information. See what events are coming up or find articles at Financially Fit.
If you have any questions about these changes, please contact the UWHR Benefits Office by emailing totalben@uw.edu.