Bill > HB2602

This bill establishes requirements for a "portable benefit plan," which is a benefit plan administered by a third party chosen by an independent contractor, and can cover services like health insurance, income replacement, disability insurance, life insurance, or retirement benefits. A "hiring party," meaning anyone who contracts with an independent contractor, can contribute to these plans, either with their own funds, the contractor's funds, or by withholding a portion of the contractor's compensation if agreed upon in writing and voluntarily elected by the contractor. Crucially, for Kansas income tax purposes, this bill allows for a "subtraction modification," meaning that contributions made by a hiring party to a portable benefit plan, and contributions made by an independent contractor to such a plan that are already included in their federal adjusted gross income, can be subtracted from their Kansas adjusted gross income, effectively reducing their state income tax liability, starting for tax years after December 31, 2026.