Washington State's New Tax
43
An explanation of the new tax for ALL W-2 Employees working in WA State.
Audio Transcript Auto-generated
- 00:00 - 00:03
have you heard about Washington State's new long Term Care
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Trust Act?
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Washington State spends billions of dollars on paying for care
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for those who need help with normal daily activities.
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And that's great this new taxes meant to pay for
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when it's your turn and you need the same help.
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Would you like to have the option to use that
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same tax money to purchase a plan you want starting
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January 2020 to a mandatory tax will begin being deducted
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from your paycheck.
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All W two employees.
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The tax collector is coming soon.
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If you are self employed or a 10 99 contractor,
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you can opt in.
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Everyone pays the same tax rate, so if you make
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more, you pay more.
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But everyone gets the same benefit.
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To be fully vested, you must pay in for 10
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years. What do you get?
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$100 per day with a maximum of 365 days.
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A skilled nursing facility would cost you $400 a day.
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Compare the state's option to a plan you could purchase
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on your own, like Bill and Sarah, who are in
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the middle of their working career if they purchase a
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policy on their own.
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The cost year one is slightly more than the tax,
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but you immediately get three times the benefit.
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The cost in Year 10 is less than the state
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tax, by the way, this estimate is based on no
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tax increase.
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If you're single, you two would get triple the benefit
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immediately. However, you must act quickly.
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If you do nothing, you are choosing to pay the
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tax you pay for 10 years and you are fully
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vested. But what if you're offered a job out of
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state? You'll have to leave that money behind.
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The state's plan is not portable.
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The law was written so they could increase the tax
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rate. But what's the likelihood of a tax increase?
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What choice do you have?
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You could get an exemption only if you act quickly.
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Purchase your own policy by July 2021.
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By the way, this deadline is a secret.
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Have you seen any commercials about the new tax they
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could tell us?
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But they choose not to.
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So that's why we put this video together.
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You have one chance to opt out when you purchase
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your own policy.
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You can decide how much.
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Your maximum benefit is your policy will pay for your
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care. Washington State can't use it to pay for others.
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And your policy will go with you if you move.
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Remember, you're buying a long term care plan.
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Either way, the deadline is July 2021.
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Why is the deadline in July?
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Well, in 2019, the deadline was set for two years
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from the date the governor signed House bill 13.
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23 into law.
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Well, two years is July 2021 will be here before
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you know it.
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Give us a call today to check out your options.
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And by the way, tell your friends.