NY A06570

Establishes the New York State Small Business Child and Dependent Care Savings Program as a payroll deduction savings arrangement for employees of small businesses with 1-100 employees in the state.

Program administered jointly by the Commissioner of Labor and the State Comptroller, who are authorized to establish a flexible benefits program compliant with Internal Revenue Code sections 125 and 129.

Creates the New York State Small Business Child and Dependent Care Program Fund held in joint custody of the Commissioner of Taxation and Finance and the State Comptroller to hold individual enrollee savings accounts funded through payroll deductions.

Requires participating employers to establish payroll deposit arrangements allowing employees to voluntarily enroll, select contribution levels, and change or terminate participation at any time; employers retain option to offer their own employer-sponsored plans instead.

Program implementation and employee enrollment must begin within 12 months of the bill's effective date; makes payroll deductions for child and dependent care services tax-deductible under Tax Law section 612.