Understanding WA Cares Fund Requirements for 2026

Published June 6, 2026·6 min read

As a small business owner or solo entrepreneur in Washington, you need to stay informed about the WA Cares Fund requirements for 2026. This program, designed to provide long-term care benefits to residents, will affect your payroll processes and tax obligations. Understanding these requirements is crucial for your financial planning and compliance. In this article, we'll break down what you need to know about the WA Cares Fund and how it fits into your payroll tax responsibilities.

What is the WA Cares Fund?

The WA Cares Fund is a state program that provides long-term care services to Washington residents. It aims to ensure that individuals can access necessary care without financial hardship. Starting in 2022, employees began contributing to this fund through payroll taxes. As of 2026, the contribution rate is set at 0.58% of your gross wages. This means if you earn $100,000 a year, you'll pay $580 annually towards the WA Cares Fund. It's important to factor this into your payroll calculations as you prepare for the upcoming tax year.

2026 Payroll Tax Requirements

In addition to the WA Cares Fund contributions, you'll need to consider other payroll taxes in Washington. Here's a breakdown of the key components for 2026: 1. Social Security Tax — 6.2% on wages up to $176,100. 2. Medicare Tax — 1.45% on all wages. 3. WA Paid Family and Medical Leave (PFML) — 0.74% of employee wages. 4. WA Labor & Industries (L&I) — rates vary by industry and should be checked annually. These taxes must be withheld from employee wages and reported correctly to avoid penalties.

Recent WA Cares Fund Updates

The WA Cares Fund has undergone several updates since its inception. As of 2026, the program has clarified eligibility requirements and expanded the scope of covered services. Employees who have paid into the fund for at least three years or have contributed for a minimum of 10 years can access benefits. The maximum benefit amount is $36,500, which can be used for various long-term care services. Staying updated on these changes is vital for compliance and ensuring your employees understand their benefits.

To simplify your payroll calculations, use the free payroll tax calculator at micro-payroll.com. It will help you accurately determine your obligations and ensure compliance with the WA Cares Fund requirements for 2026.

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Frequently Asked Questions

Who is exempt from WA Cares Fund contributions?

Certain individuals, like those who are self-employed or work less than 500 hours per year, may be exempt.

How do I report WA Cares Fund contributions?

Contributions are reported as part of your payroll tax filings along with other payroll taxes.

Can I opt-out of the WA Cares Fund?

Employees may be able to opt-out if they have long-term care insurance that meets specific criteria.

What happens if I don't comply with WA Cares Fund requirements?

Failure to comply can result in penalties and back taxes owed to the state.

When will I start seeing benefits from the WA Cares Fund?

Benefits will be available starting in 2025 for those who meet the eligibility criteria.

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