Not a Member? Get access to HR news and resources that you can trust.
Here is how HR can help prevent the missteps that could cost your company big in court.
Is your employee handbook ready for the changing world of work? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
60+ new SHRM Seminar dates in 10 U.S. cities and virtually.
Expand your influence and learn how to become an effective leader -- Join us in Phoenix, AZ, October 2-4, 2017.
Because an employee with a domestic partner is taxed on the value of employer-provided coverage and must pay the employee’s premiums on an after-tax basis, the employee ends up paying significantly more for coverage than an employee covering a spouse. Employers that recognize this disparity and want to provide equal benefits often address this issue by “grossing-up” the income of the employees covering their domestic partners by the amount that the employees must pay in taxes for the domestic partners’ coverage.
Employers that opt to gross-up employees’ salaries should keep in mind that since the employees must pay tax on the gross-up, the amount of the gross-up should include both the amount of the tax that an employee would pay for the domestic partner’s coverage and the amount of the tax that the employee would pay on the gross-up itself.
Smarter Domestic Partner Benefits (HR Magazine)
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies