New law may require employers to send child-support payments electronically
Employers of all sizes are valuable partners with the Department of Social and Health Services Division of Child Support (DCS). By reporting new hires, processing Income Withholding for Support (IWO) orders and sending payments to us, you help DCS collect more than 65 percent of the nearly $700M we collect for families each year.
Because of your relationship with DCS, it’s important that you know that certain employers must send child-support payments electronically effective Jan. 1 2019. Many already do this. It saves employers, the state, taxpayers and families both time and money.
Under this new law, an employer or other business that has received an IWO from DCS requiring payments to the Washington State Support Registry must send payments through Electronic Funds Transfer (EFT).
The new law applies to businesses that have:
• ten or more employees/contractors that receives an IWO, or
• fewer than ten employees if the business receives more than one IWO, or
• if the business uses a payroll processing company, or
• if the business is required to file and pay taxes electronically to the Department of Revenue.
DCS is working hard to make this transition as easy as possible. Employers can pay online or choose from other electronic payment options. Employers are encouraged to switch to electronic payments early, and avoid a crunch as the deadline approaches.
In addition, the new law includes options for exemptions or a waiver for those who qualify. Employers also can call DCS Central Services EFT Customer Service atService at 800.468.7422 for assistance.
You can find updated information as it becomes available, and register for our upcoming webinar, The Basics of Child Support For Employers, on our website.