The Division of Baby Help is contemplating proposing adjustments to introduce independent-contractor reporting to Washington state, and they’re asking in your suggestions on their proposal (also referred to as company request laws). It is a draft idea that also has a number of steps earlier than it will likely be authorised 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 providers of or present a platform for unbiased 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 staff to DCS inside 20 days of rent. This permits DCS to ship income-withholding orders rapidly, for extra environment friendly assortment of kid help funds which are then disbursed to the kid’s family. Roughly 70% of funds collected every month are based mostly on income-withholding orders being honored by employers.
The requirement can be just like present new-hire reporting necessities and relies on a mannequin act printed in late 2023. Twenty-one different states have necessary reporting necessities for unbiased contractors.
Why is DCS proposing this alteration?
Except reported by the dad or mum paying help or the dad or mum receiving help, DCS learns of contractor preparations from the Washington State Employment Safety Division’s quarterly earnings stories, 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 tougher to determine a “right-sized” order as a result of we now have much less correct details about the paying dad or mum’s precise revenue. Because the gig financial system grows, conventional employment preparations are reducing 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 may also host two webinars to supply extra details about the proposed adjustments.
- July 15: This webinar is meant for unbiased 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 will be chargeable for reporting unbiased contractor info. Click on right here to be taught extra or register to attend on July 18.
We recognize you taking the time to share your suggestions about DCS’s proposal. Your info, feedback and place will probably be shared with the Workplace of Monetary Administration and the Governor’s Workplace later this fall after they take into account whether or not to approve our company request laws idea. Whether it is authorised, legislators will probably be requested to sponsor the proposal and introduce it in the course of the 2025 session.