KS HB2602

Establishes portable benefit plans for independent contractors, administered by third-party providers (banks, investment firms, or technology providers approved by the state bank commissioner) rather than hiring parties

Requires portable benefit plans to offer at least one of the following: health insurance, income replacement insurance, disability insurance, life insurance, or retirement benefits

Allows contributions to portable benefit accounts from three sources: independent contractor funds, hiring party funds, or withheld compensation (if expressly agreed to in writing and voluntarily elected by the contractor with opt-out rights)

Prohibits using portable benefit plan contributions as a factor in determining whether a worker is classified as an employee or independent contractor

Creates Kansas income tax subtraction modifications for taxable years beginning after December 31, 2026, allowing both hiring parties and independent contractors to deduct contributions to portable benefit plans from state taxable income