Employer Resources
Cares Fund (WA)
The WA Long-Term Services and Supports Trust Act (renamed the WA Cares Fund) was signed by Governor Inslee in 2019. The intent of the Cares Fund is to make Long Term Care services available to all Washingtonians, as many individuals need Long Term Care over the course of their lifetime(s). Most Medicare plans cover very little long-term care, and Medicaid requires one to spend down their life savings before paying for long-term care. The Cares Fund provides services that allow people to "age in place" (that is, remain in their homes), in addition to care in a nursing facility. The Cares Fund will be funded through payroll deductions. These deductions had been scheduled to start on 1/1/2022, but on 1/27/2022, Governor Inslee signed a bill that delayed premium collection to 7/1/2023. WA Cares reporting and premium remittance to the ESD will be done at the same time as Paid Family and Medical Leave reporting and premium remittance.
The program is mandatory for all employees in Washington State, regardless of age, hours worked, or retirement plans. Those who are self-employed may voluntarily participate. The definition of self-employed used for the Cares Act is the same definition used by the Paid Family and Medical Leave program. The cost is 5/8th of a percent of gross wages (including bonuses). To calculate annual cost, multiply annual salary x .0058. There was an opt-out option for those who had an equivalent or better individual or group Long Term Care insurance in place by 11/1/2021. Employees who would like to and are eligible to opt out of payroll deductions and program benefits must submit an opt-out application to the ESD and provide the ESD's approval letter to their employer.
NWMN is a provider of ministry resources, and as such, the information, opinions, and materials provided
are of this nature and not intended to replace the advice of an attorney or accountant.
Employee Classification: Exempt vs. Non-Exempt (WA and ID)
A key distinction churches need to make to remain legally compliant is which of their employees are classified as Exempt and which are classified as Non-Exempt. The sections below specify which employment regulations apply to each classification.
To access a Church Law & Tax article with guidelines on how to determine if an employee is Exempt or Non-Exempt, click here. Generally, those in pastoral (or ministerial) roles have what is called a ministerial exemption (as noted in the Church Law & Tax article). Before applying this rule too broadly, please seek counsel on your church’s or minister’s specific situation.
NWMN is a provider of ministry resources, and as such, the information, opinions, and materials provided
are of this nature and not intended to replace the advice of an attorney or accountant.
Minimum Salary for Exempt Employees (WA and ID)
Effective November 15, 2024, all Exempt employees, except those using the ministerial exemption, are required to make a minimum of $35,568/year. If an employer has Exempt employees who do not make this minimum, they can either increase the employee’s wage to the threshold, or re-classify them as Non-Exempt and pay them hourly. Non-Exempt employees must be paid minimum wage and paid overtime (at a rate not less than time and one-half their regular rate of pay) for hours worked over 40 in one week. This change is at the federal level, so it affects all states. If a State has a different Exempt salary threshold than the Federal rule, the rule that is the highest benefit to the employee prevails.
Washington Only
Effective January 1, 2021, WA’s Exempt minimum salary has exceeded the federal requirements. It is $80,168 for employers with 1-50 employees in 2026. Click here for information on this. Please note that amounts on this chart beyond 2026 are estimates, as the Consumer Price Index, which the Exempt salary minimum is based on, may change between now and then.
NWMN is a provider of ministry resources, and as such, the information, opinions, and materials provided
are of this nature and not intended to replace the advice of an attorney or accountant.
Paid Family and Medical Leave (WA)
The Washington State Paid Family and Medical Leave was signed into law in 2017 and required that employee paycheck deductions (i.e., premiums) start to be collected on January 1, 2019, unless the employer:
Voluntarily decided to pay these premiums on their employee’s behalf. OR
They applied and were approved to operate a Voluntary Plan. Voluntary Plans are employer-run and employer-funded plans that meet or exceed the state’s plan benefits.
Employers that have 50 or more employees are required to pay an employer-paid premium in addition to the employee-paid premium. Premiums are remitted to the Employment Security Department (ESD) for all classifications of employees (Exempt or Non-Exempt) of for-profit and not-for-profit employers, regardless of the number of hours/week that the employees work.
From 1/1/2019 – 12/31/2021, employee premiums were .0025332 of their gross wages. For example, an employee whose gross wages were $4,000/month paid $10.13/month. Effective 1/1/2022, employee premiums were .0043932 of gross wages. Effective 1/1/2023, employee premiums were .0058208 of gross wages. Effective 1/1/2024, employee premiums were .00528582 of gross wages. Effective 1/1/2025, employee premiums were .0065794 of gross wages. Effective 1/1/2026, employee premiums are .00807159 of gross wages. For instructions on remitting premiums, click here.
For more information about employers’ responsibilities under the Paid Family and Medical Leave, click here. For more information about which employees qualify to use Paid Family and Medical Leave and what it can be used for, click here. Even if an employee does not qualify for Paid Family and Medical Leave, their employer is still responsible for withholding premiums from their paycheck for the program.
NWMN is a provider of ministry resources, and as such, the information, opinions, and materials provided
are of this nature and not intended to replace the advice of an attorney or accountant.
Paid Sick Leave (WA)
The Washington State Paid Sick Leave Act went into effect on January 1, 2018. It applies to all Non-Exempt employees of for-profit and not-for-profit employers.
The Paid Sick Leave Act requires that employees accrue at least one hour of paid sick leave for every 40 hours worked. An employer may provide an employee with more generous leave, including a higher sick leave accrual rate. An employer may alternatively choose to provide a Paid Time Off (PTO) benefit that can be used for either sick time or vacation time, as long as it is equal to or more generous than the Paid Sick Leave Act accrual requirement and the employer allows employees to use their PTO for all situations the Paid Sick Leave Act outlines.
For more information about the policy, including what Paid Sick Leave can be used for, carry-over requirements of Paid Sick Leave from one year to the next, and policy templates, click here. Note that if an employer chooses to require reasonable notice for the use of Paid Sick Leave, or to request verification for absences exceeding three days, they are required to have their Paid Sick Leave policy in writing.
NWMN is a provider of ministry resources, and as such, the information, opinions, and materials provided
are of this nature and not intended to replace the advice of an attorney or accountant.
Questions?
Questions related to the above topics can be directed to the Network’s Human Resources Specialist, Theresa Thacker, or to your church’s legal counsel.