Child Support Report Features Independent Contractor Model Legislation

The article, “Model Act for Independent Contractor Reporting,” written by PAYO staff, is featured in the October 2023 edition of the Child Support Report, a monthly e‑newsletter published by the federal Office of Child Support Services (OCSS).

The National Council of Child Support Directors’ Employer Collaboration Committee finalized the model act on independent contractor reporting this past summer. The model act can help states if they decide to pursue legislation requiring companies to report independent contractors as new hires. It also helps standardize the process for withholding child support from payments made to contractors. 

The act includes suggested data elements, payment threshold amounts, and reporting timeframes that closely conform to existing new hire reporting requirements for employees.

Businesses that use independent contractors will benefit from this model because reporting includes the same information they already report to the IRS. Implementing the model will also help child support agencies receive new hire information for independent contractors, triggering income withholding orders and resulting in consistent payments to families. 

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Adam Prinzo is the Assistant Manager of Government Relations for PayrollOrg.