Employer resource / Compliance
WA Cares: payroll, exemptions, and moving out of state.
Use the program’s current rules to distinguish payroll withholding from an individual’s eligibility for benefits or an exemption.
Quick answer
Covered wages are subject to the 0.58% employee premium, with no employer share. Out-of-state continuation began July 1, 2026; that date was not a universal election deadline.
Employer action table
| Topic | Action | Date or rule |
|---|---|---|
| Premium withholding | Withhold and remit premiums for covered workers. | 0.58% of covered wages; the Social Security wage cap does not apply. |
| Approved exemptions | Retain the required documentation and apply effective dates correctly. | An employee’s eligibility to apply is not always an approved exemption. |
| Non-immigrant visas | Apply the automatic exemption rules and any written election to participate. | Automatic exemption began January 1, 2026. |
| Active-duty military with civilian employment | Follow the application and approval process. | Do not treat this as the same automatic process as the visa exemption. |
Moving out of Washington
Eligible workers can elect out-of-state participation within one year of establishing their primary residence outside Washington. The program requires at least three years with 500 or more contributing hours in each year and no active exemption. Participation began July 1, 2026; out-of-state benefits become available July 1, 2030, subject to benefit eligibility.
Illustrative example
For a move after the program opened, use the employee’s actual move date to check the one-year election window. Paying premiums in the past does not by itself establish eligibility for continued participation or benefits.
Questions for payroll and the program
- Which wages and workers are covered under the current rules?
- Which exemptions are automatic, and which require an approval letter?
- When does withholding stop or resume after an exemption or status change?
- What records and reporting does ESD require?
Employees considering an exemption, rejoining, or portability should use current WA Cares instructions for their circumstances. Employers should not choose an employee’s personal long-term-care strategy.
Benefits and payroll coordination
WIB can help organize benefits questions and connect clients with relevant resources. Payroll and WA Cares/ESD should confirm withholding and exemption handling. We do not provide tax or legal advice.
Sources checked September 19, 2026. General information; your plan and circumstances matter.
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