Long Term Care is calculated as follows: Gross wages x .0058 = total premium with no wage cap.
Navigate to Payroll Setup > Company Taxes choose Add Tax Code and then 'All' for type.
NOTE: For multi EIN Clients you will need to first choose the EIN to add the tax to. You may need to add the tax for more than one EIN if applicable.
Find Washington Long-Term Care Insurance, check the box and click 'Add Selected Taxes' or choose the Flag icon.
A success message will appear when added. Then find the tax and choose the edit pencil.
Check the box to alert when added to employees.
Populate the State EIN with the client's UBI number preceded by the letter C.
Effective date the start of the tax for 1/1/2022 (or respective start date) as shown below if the company has voluntarily opted into withholding the tax:
If the client will not be withholding the tax until it is mandatory, then add the tax with the below settings using the ignore status:
Once the tax becomes mandatory a new effective date will need to be added setting the tax to active. At the date of this article, we currently don't know when this will be mandatory.
Complete any other tax setup related items that are client specific (i.e. GL settings, lists, etc)
For employees with a valid waiver, see the knowledge article on how to make them exempt from the tax.