Kansas

Discussion

Kansas: New Portable Benefits Framework for Independent Contractors

Effective July 1, 2026, HB 2602 establishes a voluntary framework allowing “hiring parties” (a term that includes traditional businesses and internet or app-based platforms) to contribute to portable benefit plans for independent contractors. These plans may fund health insurance, income replacement or disability insurance, life insurance, or retirement benefits. Contributions may come from the contractor, the hiring party, or a portion of the contractor’s compensation withheld under a clear, written, and voluntary opt-in arrangement that the contractor may revoke at any time. Importantly, the law expressly states that contributing to a portable benefit plan cannot be used as a factor in determining a worker’s employment classification. The law also creates a state income tax subtraction modification, beginning with tax years after December 31, 2026, for amounts hiring parties and independent contractors contribute to these accounts, to the extent not already excluded from federal adjusted gross income.

 

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