Why does a Washington contract take WA Cares out of your pay?

Washington has no income tax on wages, but employers there withhold a WA Cares Fund premium of 0.58% of gross wages for the state's long-term care benefit. A traveler who lives outside Washington can apply for an exemption, and once the approval letter reaches the employer and the exemption takes effect, the withholding stops.

By ProTherapy Staffing, published November 7, 2026.

What is the WA Cares deduction on a Washington paycheck?

A premium for Washington’s long-term care benefit, and you pay all of it. The WA Cares Fund’s employer page tells employers: “The premium is 0.58% of an employee’s gross wages,” and that they “won’t pay any share of these contributions for your employees”.

It is figured on gross wages, the taxable hourly pay in your package, not on your stipends. The same page adds that, “unlike Paid Leave, premium contributions are not capped at the taxable maximum for social security.” On your stub it may read “WA Cares Fund” or “WA Cares LTC”, the labels the fund asks employers to use.

Can a traveler who lives in another state be exempt?

Yes, if you live outside Washington. The fund’s exemptions page says: “Washington workers are eligible for a WA Cares exemptions if any of the following apply: You live outside of Washington.” The other routes it lists are for active-duty service members, their spouses or partners, and veterans with a qualifying disability rating.

The exemption is not automatic for a traveler. You apply, and the premium keeps coming out of your pay until the exemption takes effect and your employer has the letter.

If you want a Washington offer split into taxable wage and stipends before you sign, ask a ProTherapy recruiter: Find my next contract.

When does the withholding stop?

From the start of a later quarter, and only once your employer has the approval letter. The exemptions page says an approved letter “will indicate the date your exemption takes effect (the first day of the quarter after your application is approved).”

Then: “You will need to provide a copy of your exemption approval letter to all your current and future employer(s).” And: “Once you provide your approval letter to your employer(s) and your exemption has taken effect (as indicated on your approval letter), they must stop withholding premiums.” On a short contract, that timing matters: an application made partway through a contract may not take effect before it ends.

How do you apply, and what should you keep?

Through the fund’s exemption application, linked from its exemptions page. The page says that if your exemption is approved, “ESD will mail you a copy of your exemption approval letter”, and that letter is what your employers act on.

Keep the letter with your license and tax-home records, and send a copy with your onboarding paperwork for every Washington contract. Then check the first pay stub of each contract: if the WA Cares line is still there after the date on your letter, ask the agency’s payroll team to stop it and return what was withheld, as the page says they must once they have the letter.

What happens if you do not give the letter to your agency?

You can lose the premiums. The exemptions page warns: “If you fail to provide your approval letter to your employer(s), any premiums collected after your exemption takes effect will not count toward benefit eligibility and your employer(s) have no responsibility to return those premiums to you.”

A traveler often has more than one employer in a year. Send the letter to the agency for your Washington contract, and to any later agency that sends you back to Washington, with your onboarding paperwork.

What if your situation changes?

You have to tell your employers and the state. The exemptions page says: “You must notify your employer(s) and ESD within 90 days if your situation changes and you no longer qualify for your exemption.”

The fund’s employer page explains why it matters: some exemptions are conditional, and an employee’s “failure to do so can result in required back-payment of premiums (paid by the employee) and additional penalties.” If you move to Washington, the exemption based on living elsewhere no longer fits.

Is WA Cares the only Washington paycheck deduction?

No. Washington’s Paid Family and Medical Leave program has its own premium, with rates it announces each year, and it is separate from WA Cares. Ask the agency for a sample Washington pay stub before you sign, so you can see every state deduction against the taxable hourly rate.

To compare what a Washington offer leaves you with, set the deductions against the taxable wage and the stipends separately; stipends and retirement savings explains why the split matters.

Frequently asked questions

Do travel therapists have to pay WA Cares?

Employers in Washington withhold the WA Cares premium from employees' wages. A traveler who lives outside Washington can apply for an exemption; once it takes effect and the employer has the approval letter, the employer must stop withholding.

How much is the WA Cares premium?

The WA Cares Fund says the premium is 0.58% of an employee's gross wages, paid by the employee, with no cap at the social security taxable maximum.

When does a WA Cares exemption take effect?

On the first day of the quarter after the application is approved, as the approval letter shows. Give a copy of the letter to every current and future employer.

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