Employers: Long-Term Care Payroll

Are you considered an employee of your company?

When the quickly approaching Long-Term Care Payroll Tax was covered in our Chamber webinar on July 15, 2021, it was our understanding self-employed individuals would not be subject to the tax. That is no longer (necessarily) the case.

If you are an employee of the company you own, you are not considered self-employed. This means that if you receive a W-2 from your company, you will be automatically registered for the Long Term Care tax unless you have a qualifying plan and opt out by October 31, 2021.

We recommend you watch the webinar below to learn more about the tax and how it will impact you and your employees. If you are a person who prefers to read instead of watch (or do both) Washington Policy Center recently published an excellent article on the new payroll tax.

The definitions of being self-employed is the same as that for Family Leave Medical Act. The state’s resource page for employers has some further definitions. To learn more about what you would have to do to opt out, contact your insurance & investments agent. If you don’t have someone you work with regularly, we recommend these Chamber members.