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S7054Senate2019-2020 SessionSame asA263

Add Contractors to New Hire List

Official title

“Includes certain independent contractors in the state directory of new hires to aid in the administration of the child support enforcement program”

Sponsor Anna KaplanSD-7Affects Finance
Status
In Senate Committee
Finance
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Finance

What's happening

This bill requires certain independent contractors with contracts over $2,500 to be included in New York's new hire reporting for child support enforcement.

Why it matters

  1. Expands child support enforcement. by requiring businesses to report independent contractors with contracts over $2,500, making it harder for parents to avoid child support by working outside traditional employment.

  2. Closes a significant loophole. in New York’s current “new hire” reporting system, which previously only covered traditional employees, thus increasing accountability for non-custodial parents who work as freelancers or gig workers.

  3. Places new administrative responsibilities. on businesses that hire high-value independent contractors, potentially increasing paperwork and compliance costs, but also supporting more consistent child support collection.

  4. Reflects broader workforce changes. by recognizing the growing prevalence of independent contracting and adapting child support enforcement systems to better track income from non-traditional work arrangements.

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Who cares

Headline styles

Add Contractors to New Hire List

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Anna Kaplan

Senator · Senate District 7

Chair, Commerce, Economic Development And Small Business

No co-sponsors yet.

History

  1. Reported and committed to finance
  2. Referred to investigations and government operations

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A263Assembly

Add Contractors to New Hire List

In Senate Committee · Investigations And Government Operations · Sponsor Kevin Cahill

Impact 4 · Low0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

7054

IN SENATE (Prefiled)

January 8, 2020

Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations

AN ACT to amend the tax law, in relation to including certain independent contractors in the state directory of new hires to aid in the administration of the child support enforcement program

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (a) of subdivision 2 of section 171-h of the tax law, as amended by chapter 398 of the laws of 1997, is amended to read as follows:

(a) "employee" means an individual who is an employee within the meaning of chapter twenty-four of the internal revenue code of 1986, including an individual under an independent contractor arrangement with contracts in excess of twenty-five hundred dollars, and does not include an employee of a federal or state agency performing intelligence or counterintelligence functions if the head of such agency has determined that a report made pursuant to this section with respect to the individual could endanger the safety of the employee or compromise an ongoing investigation or intelligence mission.

§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD00025-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the tax law, in relation to including certain independ- ent contractors in the state directory of new hires to aid in the admin- istration of the child support enforcement program

Purpose or general idea of bill

This bill addresses the persistent problem of tracking persons whose child support payments are delinquent. It includes independent contrac- tors with contracts in excess of $2,300 in the state directory of new hires to aid in the administration of the child support enforcement program.

Summary of specific provisions

Paragraph (a) of subdivision 2 of section 171-h of the tax law (as added by chapter 398 of the laws of 1997) is amended to provide the above addition.

Effects of present law which this bill would alter

Existing law does not include independent contractors with contracts in excess of $2,500 in the state directory of new hires.

Justification

Self-employed payers are among the most difficult to collect child support payments from. Businesses, although not required, are encouraged to report all independent contractors regardless of contract amount. This legislation provides a much needed requirement to aid in the track- ing of these delinquent payers who negligently and purposefully deny their children due support.

Prior legislative history

2017-2018: A.12 Passed Assembly

2015-2016: A.1279 - Passed Assembly

2013-2014: A.1594 - Passed Assembly

2011-2012: A.192 Passed Assembly

2009-2010: A.1190 - Passed Assembly

2007-2008: A.7722 - Referred to Ways and Means

2005-2006: A.5739 - Referred to Ways and Means,

2003-2004: A.336 - Passed Assembly

2001-2002: A.43 - Passed Assembly,

1999-2000: A.9636 - Passed Assembly

Fiscal implications

Minor administrative costs. Costs associated with implementing similar legislation in other states has shown that the requirement has not significantly impacted operating costs or worker caseloads.

Effective date

This act shall take effect on the first day of January succeeding the date on which it shall have become law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.