Bill > S08697

This bill mandates that certain employers in New York State, specifically those with at least 100 employees for over two years and who haven't previously offered a dependent care flexible spending account, must establish a dependent care flexible benefits program. This program will allow employees to set aside a portion of their compensation, through payroll deductions, into a dependent care flexible spending account, also known as a dependent care FSA. These accounts are designed to help employees pay for eligible dependent care services, such as childcare, for qualifying dependents, and the amount deferred is limited by federal tax law (specifically section 129 of the Internal Revenue Code). The bill also outlines that a program administrator will manage these accounts, and any unspent funds at the end of a plan year will be returned to the employer. Importantly, any salary deferred under this program will still be considered part of an employee's annual compensation for the purpose of calculating retirement benefits, as permitted by federal law (section 125 of the Internal Revenue Code).

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S8697