HRMS has been updated to include a new tax type: WA Cares Fund LTC Tax (113). This new tax type will be used to collect premiums required by the Long-Term Services and Supports Trust (LTSS) / WA Cares program. Premiums are scheduled to begin on the July 10, 2023, paycheck.
If agencies have identified any employees as not subject to the LTSS premium, they must manually exclude those employees from the new tax type. The following groups would need to be manually excluded:
Employees whose work is non-localized.
Employees who have applied for and received an approved permanent or conditional LTSS exemption from Employment Security Department. Be sure to pay careful attention to the exemption effective date.
Any other individuals paid through HRMS who agencies have determined are not liable for LTSS premiums, and who are not systematically excluded.
Employees are manually excluded when agencies create an Other Taxes – US (0235) infotype record for the employee, and either select Exempt, reportable (R) or Exempt, not reportable (Y), depending on their reportability of wages. Refer to the available resources below for assistance determining exemptions, reportability, and the necessary steps to create the infotype record.
Available Resources:
The following resources are available for you:
Employer Long Term Services and Supports FAQ – This document answers many questions about who is liable for premiums, ESD approved exemptions, on-boarding and off-boarding guidance, accounting of premiums, etc.
Employer LTSS & PFML IT0235 Decision Matrix – Use this decision matrix to help determine whether employees require an Other Taxes – US (0235) infotype record and which exempt status should be used. This also includes localization rules and ESD’s localization flow chart. Since the localization rules are the same for LTSS and PFML, you can use the matrix to confirm your IT0235 records are accurate for PFML tax types as well.
PA30_IT0235_LTSS-WACaresFund_EE_Exemption_Tax_Type_113 winshuttle script – Use this spreadsheet if you have 30 or more records that need to be created on the Other Taxes – US (0235) infotype due to ESD approved exemptions, employee’s whose work is non-localized, or individuals you’ve identified are not liable for LTSS premiums. This script will exempt employees from tax type 113 – WA Cares Fund LTC Tax – EE.
