The Division of Little one Assist is contemplating proposing modifications to introduce independent-contractor reporting to Washington state, and they’re asking to your suggestions on their proposal (also called company request laws). It is a draft idea that also has a number of steps earlier than it is going to be accepted to be launched as laws for the 2025 Washington state legislative session.
What’s the proposal?
DCS’s proposal would require these doing enterprise in Washington state who retain the companies of or present a platform for impartial contractors to report that association to DCS. The proposed efficient date for the laws is Jan. 1, 2027.
The brand new-hire reporting course of in RCW 26.23.040 requires employers to report all newly employed and rehired workers to DCS inside 20 days of rent. This enables DCS to ship income-withholding orders shortly, for extra environment friendly assortment of kid help funds which can be then disbursed to the kid’s family. Roughly 70% of funds collected every month are primarily based on income-withholding orders being honored by employers.
The requirement could be much like present new-hire reporting necessities and is predicated on a mannequin act revealed in late 2023. Twenty-one different states have necessary reporting necessities for impartial contractors.
Why is DCS proposing this modification?
Except reported by the father or mother paying help or the father or mother receiving help, DCS learns of contractor preparations from the Washington State Employment Safety Division’s quarterly earnings studies, if in any respect. This delays DCS in sending income-withholding orders, which suggests much less cash for the kid’s family.
The delay additionally makes it harder to determine a “right-sized” order as a result of now we have much less correct details about the paying father or mother’s precise revenue. Because the gig financial system grows, conventional employment preparations are lowering proportionately. They search to handle this hole with our proposed change.
Please present your suggestions by Wednesday, July 24, by emailing DCSlegislation@dshs.wa.gov.
DCS can even host two webinars to supply extra details about the proposed modifications.
- July 15: This webinar is meant for impartial contractors, impacted people, or advocacy teams. Click on right here to be taught extra or register to attend on July 15.
- July 18: This webinar is for companies and events that may be liable for reporting impartial contractor data. Click on right here to be taught extra or register to attend on July 18.
We admire you taking the time to share your suggestions about DCS’s proposal. Your data, feedback and place will likely be shared with the Workplace of Monetary Administration and the Governor’s Workplace later this fall once they contemplate whether or not to approve our company request laws idea. Whether it is accepted, legislators will likely be requested to sponsor the proposal and introduce it throughout the 2025 session.