How to setup the deduction for WA Long Term Care Tax

Need to collect long term care tax for WA.  How should the deduction be setup?

• Payroll

• Washington

• Deduction and Benefit Master

• Employee Deductions

Beginning January 1, 2022, employers are required collect premiums through a payroll deduction equal to 0.58% (slightly more than half of one percent) of employees’ wages (with no cap).

To create the new deduction: 

1. Open the Deduction and Benefit Master program in Munis. 

2. Select Add and choose an unused Deduction code.

3. Define the following fields as noted.  All fields not specifically noted can be populated at your discretion. 

   1. Insufficiency should be M - Mandatory (Must be Resolved)

   2. Calc Code should be 03 - Pct From Deduction Master

   3. Empe/Empr should be 1 - Employee Pays

   4. Empe Amt/Pct should be .58

   5. Empr Amt/Pct should be .000

4. Select Accept.

Once the deduction has been created in the Deduction and Benefit Master, add the Deduction code to all applicable employees in the Employee Deduction program.