Idaho's H 645, the Portable Benefit Plan Act, creates a system for independent contractors to access portable benefits through accounts funded by hiring parties. It allows companies to contribute to these accounts (without reclassifying workers as employees) and specifies that contributions are fully deductible as a business expense for hiring parties and excluded from taxable income for contractors. The bill establishes clear definitions, administration rules for benefit accounts, and tax treatment, effective July 1, 2026. It directly affects independent contractors (who gain access to benefits like health, retirement, and disability insurance) and hiring parties (who can voluntarily fund these accounts). The law does not change worker classification status but provides tax advantages for both parties.
S 1221 amends Idaho Code Section 59-1302 to revise the definition of "employee" for the state's public retirement system (PERSI). Specifically, it changes the threshold for who qualifies as an employee eligible for retirement benefits, clarifying that individuals working fewer than 20 hours per week are no longer automatically considered employees under the system. This directly affects Idaho public employees whose work hours fall below this threshold, ensuring only those meeting the revised criteria are counted for retirement benefit eligibility. The change aims to align the definition with current employment patterns and streamline administrative processes for the retirement system.
