As a small business owner in Washington state, understanding the WA Cares Fund for 2026 is crucial for your payroll management. This program is designed to provide long-term care coverage for residents, and it will affect your payroll taxes starting this year. With the implementation of the WA Cares Fund, you need to be aware of how it impacts your financial responsibilities and what steps you should take to comply with the law. Let's break down what you need to know about the WA Cares Fund, Washington state payroll taxes, and how to ensure you stay compliant.
What is the WA Cares Fund?
The WA Cares Fund is a state program that aims to provide long-term care benefits to Washington residents. Starting in 2026, employees will contribute a portion of their earnings to this fund, which will help cover the costs of long-term care services. This initiative is designed to relieve some of the financial burden on families and individuals who may need these services in the future. As a small business owner, you'll need to understand the contribution rates and how to implement them in your payroll.
2026 WA Cares Rates and Payroll Taxes
In 2026, the WA Cares Fund contribution rate is set at 0.58% of employee earnings. This rate applies to all employees working in Washington state, including part-time and full-time workers. It's essential to note that this contribution is in addition to other payroll taxes. For example, Social Security tax is 6.2% on wages up to $176,100, and Medicare tax is 1.45%. Additionally, you'll need to account for Washington Paid Family and Medical Leave (PFML) at 0.74% and the Washington Labor and Industries (L&I) rates, which vary by industry. Understanding these rates will help you calculate the total payroll taxes you need to withhold.
How to Comply with WA Cares
To comply with the WA Cares Fund requirements, follow these steps: 1. Determine employee eligibility — All employees working in Washington state are required to contribute. 2. Calculate contributions — Use the 0.58% rate on each employee's gross earnings. 3. Withhold contributions — Deduct the calculated amount from employee paychecks beginning July 1, 2026. 4. Report and remit — Submit the withheld amounts to the Washington Employment Security Department as required. By following these steps, you can ensure that you're compliant with the WA Cares Fund and avoid potential penalties.
To simplify your payroll calculations, visit micro-payroll.com and use our free payroll tax calculator. It's an easy way to ensure you're accurately withholding the right amounts for WA Cares and other payroll taxes.
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