Bill would require reporting of some contractor and platform earnings to child support agency; industry groups raise compliance concerns

House Bill 1297, which would expand new-hire style reporting to certain nonemployee work arrangements and digital-platform service providers, drew extensive testimony and a mix of support and implementation concerns.

Staff described the bill as extending new-hire reporting requirements to “service recipients” (businesses that contract for paid services or platforms that facilitate services) and “service providers” (nonemployees who receive $600 or more in a calendar year or transportation-network drivers who log into a digital platform). A service recipient would have 20 days to report a service provider’s name, address, date of birth and Social Security number to the Division of Child Support, and failure to report would carry civil penalties ($25 per month per provider, or $500 if the failure results from a conspiracy to hide or falsify reports). The bill would require a service recipient who receives an income-withholding order for a service provider to withhold the ordered amount and remit it to DCS within seven days. The bill includes a delayed effective date of January 1, 2027.

DCS Director Sharon Redmond testified the measure is based on a national model and would bring Washington into alignment with 20 states and one territory that have mandatory reporting around nonemployee work arrangements. Redmond said DCS used model legislation developed with child-support and payroll professionals and that direct reporting would shorten the lag compared with waiting on Employment Security Department records.

Payroll Org, representing payroll professionals, testified in support of the bill and welcomed provisions that minimize employer burden and avoid reclassifying contractors as employees. Alice Jacobson of Payroll Org said HB 1297 “adopts a model act on child support for contractors” and includes “well defined reporting requirements.” The department and payroll professionals said they are willing to work with affected industries on implementation.

Industry groups raised concerns. The Building Industry Association of Washington said tracking many transient independent contractors on residential sites could be costly and burdensome. Cosmetology trade representatives said a common business model—chair rentals or booths in salons—resembles a commercial lease more than a traditional contractor relationship and asked for an exemption or clarification so chair renters would not trigger reporting requirements for salon owners who do not know renters’ gross receipts. TechNet noted the bill differs in some respects from the model language and asked for tightened definitions and timing language.

Committee members questioned enforcement mechanics and protections for self-employed people whose business expenses can be large. Representative Jacobson asked whether garnishment rules for employees (which account for disposable income limits) would apply; Sharon Redmond said DCS focuses on current support and that calculations for obligations and arrears account for expenses when appropriate.

Clarifying details in staff testimony included the $600 annual threshold for reporting, the 20-day reporting window, penalties for failing to report, and the January 1, 2027 effective date.

Next steps: The committee heard extensive public testimony; no committee vote occurred in this hearing.

Ending note: Supporters said the bill would reduce the time DCS needs to discover income and increase child-support collections; trade associations urged amendment to address industry-specific concerns and administrative burden.