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Why business owners should pay attention to a new tax program

On Behalf of | Jan 25, 2022 | Business Law |

From the day-to-day operations of your business to keeping up with the needs of clients, being a pro-active business owner is no small feat. However, it is important as a business owner to not overlook the ever-changing landscape of business law and the regulations that impact their operations. In January, a formative vote took place in Washington’s House panel that affects both employers and employees in the state.

31 – 2 vote to delay long-term care tax

A bill was proposed to Washington lawmakers that would implement a long-term care tax. This tax would be applied to employees at a rate of 0.58% of earned wages. As a result of paying the tax, Washington residents could utilize the benefit of paid long-term care of up to $36,500. At the same time, it would require business owners to ensure that their employees’ wages were properly deducted to satisfy the tax. Although passing of the bill appeared promising, lawmakers voted to delay the bills implementation for at least 18 months.

How this affects business owners

Business owners can still, theoretically, deduct the long-term care tax from their employee’s wages. However, many lawmakers on both sides of the aisle are urging employers not to do so. Instead, employers and business owners are advised to take a “wait and see” approach to the tax.

The divide

There is a divide among lawmakers on the efficacy of the program in its current form. Many Republicans find themselves against the additional tax altogether. Democrats, on the other hand, remain hopeful about the program yet are not satisfied with the program in its current form.

Going forward

This is merely one instance in which lawmakers can substantially impact the lives of business owners. It is important to stay up to date with legislation and business law that can directly impact you and your operations.