The Division of Little one Help is contemplating proposing adjustments to introduce independent-contractor reporting to Washington state, and they’re asking in your suggestions on their proposal (often known as company request laws). It is a draft idea that also has a number of steps earlier than will probably 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 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 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 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 can 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?
Until reported by the mum or dad paying help or the mum or dad receiving help, DCS learns of contractor preparations from the Washington State Employment Safety Division’s quarterly earnings reviews, 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 ascertain a “right-sized” order as a result of we now have much less correct details about the paying mum or dad’s precise earnings. Because the gig economic 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 offer extra details about the proposed adjustments.
- 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 answerable for reporting impartial contractor info. Click on right here to be taught extra or register to attend on July 18.
We respect 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 once they think about 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 throughout the 2025 session.
