Gov. Inslee Offers Clarification on Premium Collection for WA Cares Act
Governor Jay Inslee issued a press release on December 23rd to address the confusion generated by last week’s announcement that premium collection under the WA Cares Fund Act was being postponed. Since the original announcement, employers have been wondering whether they should begin collecting premiums starting January 1, 2022.
Governor Inslee clarified that only the Legislature has the authority to delay premium collection timelines or eliminate the requirement that employers withhold premiums from employees’ paychecks. He went on to state: “I do have the ability to order the state Employment Security Department to refrain from collecting …those premiums from employers at this time, and I have done that.” In short, only the Legislature can direct employers to delay or refrain from collecting premiums from employees and the Legislature won’t have an opportunity to take any action or consider modifications to the law until it reconvenes on January 10, 2022.
Governor Inslee provided some insight on how the state, as an employer itself, is handling the matter, concluding that “…. the state of Washington is following the law and will have to begin collecting money from state employee paychecks as of January 1st. We know that many private employers are doing the same, and others are hoping that the Legislature will change the law. However, if the Legislature fails to do so, employers will still be legally obligated to the full amount owed to state ESD to begin the long-term care program.”
In short, the WA Cares Act hasn’t been modified at this time, and under the law, as it currently exists, premium collection is to begin on January 1, 2022. The Employment Security Department, however, will not seek those premium payments from employers at this time (although those premium payments wouldn’t have been due to ESD until the end of the first quarter regardless). The state, as an employer, will begin premium collection on January 1st. Covered employers who choose to delay premium collection will still be legally obligated to pay those premiums to ESD if the Legislature fails to take action to modify the program next year.
Governor Inslee’s full statement can be found here.