New requirement to report lump sum payments to the Division of Child Support

According to House Bill 1262, additional income reporting requirements became effective for Washington employers on July 23, 2023. Employers are now required to report lump sum payments of $500 or more to the Washington State Division of Child Support (DCS) before the lump sum is paid to the employee.

This requirement applies to only those employees with a current WA Income Withholding Order that includes a payment for past-due child support.

The reporting requirement applies to lump sum payments of $500 or more includes, but is not limited to: Retro pay, cash out of accruals such as vacation, sick or comp time; bonuses; commissions; retroactive pay; moving and relocation incentive payments; safety awards; settlement pay; and workers’ compensation for lump sum wages owed. Excluded are recurring payments of regular earnings, overtime pay, recurring premium pay, and reimbursements for expenses.

King County must report the lump sum payment to DCS and they will direct King County regarding how much to withhold for child support.

For more information, contact the Washington State Division of Child Support or visit their website at www.dshs.wa.gov/child-support.