BILL NUMBER: S8697
SPONSOR: ASHBY
 
TITLE OF BILL:
An act to amend the state finance law, in relation to dependent care
flexible benefits
 
PURPOSE:
To require midsize and large employers to establish dependent care flex-
ible benefits programs
 
SUMMARY OF PROVISIONS:
Section 1 amends the state finance law by adding a new section to
require employers to establish dependent care flexible benefits
programs. An employer is defined as a person or entity that employs at
least 100 employees, has been in business for at least 2 full years, and
has not offered in the previous 2 years any dependent care flexible
spending account under section 129 of the internal revenue code.
Section 2 sets the effective date.
 
JUSTIFICATION:
Dependent care flexible benefit programs allow employees to set up pre-
tax benefit accounts that can be used to pay for eligible dependent care
services, such as preschool, summer day camp, before or after school
programs, and child or adult daycare. Since the money they contribute is
not subject to payroll taxes, employees will end up paying less in taxes
and taking home more of their paychecks. It's a smart, simple way to
save money while taking care of your loved ones so that you can continue
to work.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
Immediately.