Delivery and rideshare companies could offer benefit accounts to drivers

A network company may offer portable benefit accounts and may choose to contribute to them. This applies to delivery couriers and participating transportation drivers who provide services through a network company’s digital system. Companies are not required to offer accounts or contribute. A driver qualifies only after earning at least $750 from one company in a calendar quarter; earnings from different companies or services cannot be combined. If a company chooses to contribute, it must pay 4% of a qualifying driver’s earnings from the previous quarter by the 30th day of the next quarter.

A company that offers accounts must provide at least three retirement account options and let eligible drivers choose to contribute from their earnings. These requirements apply only when a network company chooses to offer portable benefit accounts to eligible drivers. The company’s own contributions must be made on top of, and not taken out of, driver earnings. The company must send a driver’s chosen contribution to the account by the 30th day of the calendar quarter.

A network company would not count an app-based driver as its employee or agent if it avoids four listed controls over the driver’s work. This applies to delivery couriers and participating drivers who provide services through a network company’s digital system. The company must not set required login times or hours, end a contract because a driver refuses a specific request, block work through other companies while the driver is not working for it, or block other lawful work. The protection from contract termination for refusing a request is subject to an exception under the cited transportation law.

An account owner would receive a state income tax subtraction for contributions and could owe tax and a penalty for certain distributions. This applies to owners of portable benefit accounts. The subtraction applies to contributions made by the account owner. A 10% penalty applies to distributions used for purposes not allowed by the account rules; the text also treats such distributions as taxable income when a subtraction was claimed for those amounts. The tax subtraction and income rule apply to taxable years beginning after December 31, 2024.