House committee substitute to the 2nd edition makes the following changes.
Renumbers the new Article as Article 53 to GS Chapter 66 and makes conforming changes. Clarifies the definitions of bank, portable benefit account (PBA), portable benefit account provider, and portable benefit plan. No longer specifies types of insurance and benefits included as portable benefit plans. Defines six additional terms including portable benefit plan provider.
Expands upon who may contribute to a portable benefit account. Clarifies required conditions of agreement between an independent contractor and a hiring party making voluntary PBA contributions. Prohibits a hiring party from making PBA contributions contingent on use of a certain portable benefit account provider and specifies that hiring party shall treat PBA contributions as compensation.
Specifies that a PBA is the sole property of the independent contractor who owns it and its contents do not revert to a hiring party. Permits PBA owner to cease contributions, change purchased plans, or transfer account balance at any time without penalty. Sets out 13 permissible uses of PBA funds. Specifies that a hiring party’s PBA contributions are not evidence of an employer-employee relationship and do not affect entitlement to unemployment insurance benefits.
Provides that an independent contractor who opts in to voluntary contributions from a hiring party shall select a portable benefit account provider to administer the funds. Prohibits a hiring party from serving as an account provider except as a pass-through contributor. Prohibits conditioning fund distribution on continued work for hiring party. Specifies requirements for segregation of funds, fee disclosure, financial responsibility, recordkeeping, standard of care, and approval from the Commissioner of the North Carolina Department of Labor.
Makes clarifying changes to provision allowing deduction of PBA contributions from adjusted gross income calculation and exclusion from withholding requirement. Adds new subsection GS 105-251.2(c1) to require portable benefit account providers to give information to the Secretary of Revenue upon request subject to specified parameters.
Removes appropriation. Changes the act’s effective date to January 1, 2027.
Bill Summaries: all (2025-2026 Session)
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Bill H 1083 (2025-2026)Summary date: Jun 30 2026 - View summary
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Bill H 1083 (2025-2026)Summary date: May 12 2026 - View summary
House committee substitute to the 1st edition makes the following changes.
Modifies the term hiring party so that it includes entities or public or private persons, including an internet or application-based company, who hire or enter into a contract with an independent contractor in GS 66-515 (definitions pertaining to the Voluntary Portable Benefits Act). Clarifies that a hiring party may only contribute funds to a portable benefit account (PBA) for the work provided by an independent contractor in GS 66-516 (administration of a voluntary portable benefit plan-Plan). Specifies that one of the sources of contribution to a PBA is the hiring party’s funds in addition to compensation (was, just the hiring party’s funds). Makes technical and clarifying changes.
Removes new GS 66-517 which set forth tax deductions available to both the hiring party and independent contractor making contributions to a Plan. Now allows an independent contractor to deduct the amount received from a hiring party in a Plan from their adjusted gross income under GS 105-153.5, effective for tax years beginning January 1, 2026.
Makes conforming change to effective date.
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Bill H 1083 (2025-2026)Summary date: Apr 28 2026 - View summary
Enacts Article 52, the “Voluntary Portable Benefits Plan Act,” to GS Chapter 66 authorizing any person or entity, whether public or private, including an internet or application-based company, to voluntarily contribute funds to a portable benefit account for an independent contractor. Defines portable benefit plan as one that is administered by a third-party benefit plan provider chosen by the independent contractor and assigned to a beneficiary rather than to a hiring party and includes, but is not limited to (1) health, unemployment, income replacement, disability, or life insurance and (2) retirement benefits. Defines four other terms. Clarifies that contributions by a hiring party to any portable benefit account cannot be treated as evidence that a worker is an employee of the hiring party under State unemployment insurance, worker's compensation, taxation, or labor laws. Specifies two means of making contributions to a portable benefits fund, including the hiring party’s funds or a percentage of funds withheld from compensation owed to an independent contractor under the conditions described. Authorizes the hiring party to deduct 100% of the amount contributed to a portable benefit plan during the appliable tax year. Authorizes an independent contractor to deduct 100% of the amount contributed by the hiring party during the applicable tax year.
Effective July 1, 2026, appropriates $10,000 from the General Fund to the Department of Labor for 2026-27 to educate the general public about the act.
Effective July 1, 2026.