Ernst & Young LLP and its affiliates will reimburse lesbian, gay, bisexual and transgender (LGBT) employees for the additional federal and state taxes they pay on same-sex domestic partners' or spouses' medical benefits in the U.S., making it the first Big Four accounting firm to offer this perk. The tax equalization (gross-up) was effective Jan. 1, 2012.
"Ernst & Young strives to promote an equitable work culture in every way possible," said Karyn Twaronite, Americas inclusiveness officer at Ernst & Young. "Our decision to provide this tax gross-up reinforces our long-standing pledge to foster a work environment that is inclusive for all of our people and signals our ongoing efforts to remain a leader in providing equitable benefits."
Ernst & Young began offering employees in the U.S. same-sex domestic partner benefits in 2002. Under federal law and many state laws, same-sex partnerships are not recognized, causing employees who receive health care for their same-sex partner or spouse under their employer's health plan to incur extra taxes.
As of December 2011, there were only 30 for-profit employers that grossed-up these benefits, according to the Human Rights Campaign (HRC), a civil rights organization working to achieve LGBT equality in the workplace. However, as of Jan. 1, 2012, seven other large U.S. companies began offering these reimbursements as well: Thomson Reuters, American Express, Morgan Stanley, Bank of America, Microsoft, Yahoo and Accenture.
Ernst & Young is the first of the Big Four professional services firms to receive a 100 percent rating for corporate equality from HRC, according to the firm.
Related Articles:
LGBT Hiring and Benefits Benchmarked, SHRM Online Diversity Discipline, January 2012
HR Q&As: Does federal COBRA apply to same sex domestic partners?, SHRM Templates and Tools, January 2012
New York Marriage Law Impacts Benefits, SHRM Online Benefits Discipline, July 2011
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