The proposed bill establishes a five percent excise tax on payroll expenses exceeding $125,000 for large operating companies in Washington State, set to take effect on July 1, 2026. The revenue generated from this tax will be directed to the newly created "Well Washington Fund Account," which aims to support essential services such as higher education, healthcare (especially Medicaid), cash assistance programs, and energy and housing initiatives. The bill also includes the formation of an oversight board to ensure accountability and address funding needs in light of potential federal funding cuts. Employers with total employee wages below $7 million in the previous calendar year will be exempt from this payroll tax.

Additionally, the bill introduces new sections to existing law regarding tax collection, assessments, and appeals related to employer tax obligations. It establishes procedures for immediate tax collection actions if an employer ceases business or transfers ownership, and outlines the process for appealing assessments deemed unjust. The bill mandates that all tax, interest, and penalties collected be deposited into the state’s general fund until July 1, 2027, after which a portion will be allocated to the Well Washington Fund account. It also includes provisions for rule-making, a short title for the act, and a severability clause to ensure the act's effectiveness even if parts are found invalid.