Bill > H0645

This bill establishes the Portable Benefit Plan Act in Idaho, creating a framework for independent contractors to access benefits. It defines key terms such as "independent contractor" as someone hired for a specific result with control over their work's outcome, and "portable benefit account" as a fund owned by the contractor to purchase benefits. The act allows any entity, including app-based companies, to voluntarily contribute to these accounts, and these contributions will not be considered evidence of employment for legal purposes. Contributions can come directly from the hiring party or through voluntary, written agreements where the independent contractor opts-in to a percentage of their compensation being withheld, with the ability to opt-out at any time. Importantly, the bill provides tax benefits, allowing hiring parties to deduct 100% of their contributions as a business expense and independent contractors to exclude these contributions from their taxable income. The act is set to take effect on July 1, 2026.

Business and Industry

Business Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0645/