According to House Bill 1262, Washington State employers will have additional income reporting requirements effective July 23. 2023.
On that date, employers are required to report bonuses and lump sum payments of over $500 to the Division of Child Support (DCS) before being paid to the employee. If a payment amount is unknown or is less than $500, those may also be reported. Bonuses and lump sum payments include, but are not limited to: cash service awards, commissions, performance bonuses, retroactive pay increases, severance pay, sign on bonuses, and vacation/holiday pay.
Division of Child Support staff must review and respond in writing within 14 days of the employer’s reporting. Similar to other garnishments for child support, a 50% of disposable income limitation applies.
How to report:
- Report electronically using the Office of Child Support Services (OCSS) Portal
- Email DCS Special Collections Unit: LSC@dshs.wa.gov
- Call DCS Special Collections Unit: 360-664-5338
What to report:
- Employer’s name & Contact Information
- Employee’s name
- Employee’s SSN or IN account number
- Amount of the lump sum payment (if known) and expected pay out date
DCS recognizes Indian tribal sovereignty. Indian tribes, tribally owned businesses, and Indian owned businesses located on reservations are exempt from Bonus and Lump Sum reporting requirements. However, voluntary reporting of Bonuses and Lump Sums is appreciated.
If you have any questions about this requirement, please contact the DCS Special Collections Unit at LSC@dshs.wa.gov or 360-664-5338.
