Reporting Bonuses and Lump-Sum Payments

As of July 2023, state law requires employers to report bonuses and lump-sum payments to DCS.

As of July 2023, state law (RCW 26.23.063) requires employers to report bonuses and lump-sum payments to DCS. This requirement applies only to employees with a current Washington state income-withholding order that includes a payment amount for past-due child support and the bonus or lump-sum payment is more than $500.

You can download a flyer to share with employees to explain the reporting requirements. It is available in English and Spanish.

The types of payments you need to report:

  • All lump-sum payments that are more than $500. Reporting payments under $500 is optional.
  • Lump-sum payments include, but are not limited to:
    • Bonuses.
    • Cash service awards.
    • Commissions.
    • Performance bonuses.
    • Retroactive pay increase.
    • Severance.
    • Sign-on bonuses.

    • Vacation/holiday-pay cash-out options.

       

When am I required to report these payments?

  • Report lump-sum payments as soon as possible but preferably not earlier than one month prior to the payout date.
  • DCS has up to 14 days to respond to the employer as to whether the lump sum will be garnished and how much to withhold. The 50% limitation still applies.
  • In order to ensure a timely response, DCS prioritizes lump-sum reports based on the payout date the employer provides.
  • If the payment is expected to be paid to the employee within the 14-day response time, employers must garnish and hold 50% of the payment until DCS responds or the 14 days expire. Employers can release the remaining 50% to the employee on the 15th day if no response is received from DCS.

How do I report bonuses and lump-sum payments?

What information should I report?

  • Employer name
  • Employer contact information
  • Employee name, and SSN or IN account number
  • The amount of the bonus and expected pay-out date (if known)

Who should I contact if I have questions?

Employee Resource

This flyer can be given out to assist with explaining the reporting requirement to employees. Available in English and Spanish.