Senate committee approves voluntary portable benefit accounts for independent contractors
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Summary
Lawmakers advanced Senate File 41 to allow voluntary portable benefit accounts for independent contractors, modeled on other states; the committee amendment added dental and vision benefits and clarified definitions of benefit providers and financial institutions.
Senator Olsen presented Senate File 41 on Feb. 17, proposing a voluntary framework for portable benefit accounts that independent contractors may opt into to receive health, retirement, income-replacement, life, dental and vision benefits through a financial-institution-managed account.
Olsen said roughly 65,000 independent contractors in Wyoming could elect to participate; the standing committee amendment broadened the benefit types (adding dental and vision) and clarified the range of qualified portable-benefit-account providers (financial institutions, investment management firms, technology providers or program managers approved by the banking commissioner).
Floor questions focused on tax implications (whether contributions would be pretax), interstate portability of benefits and whether participation could alter an independent contractor’s classification. Sponsor said the bill includes language to prevent plan participation from being used as a criterion for employment-classification determinations but acknowledged the IRS or other federal authorities may view arrangements differently. Senator Olsen noted Utah and several other states are models for the approach and said she would follow up on tax and interstate portability details.
The Committee of the Whole recommended the bill do pass as amended.