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Title: Domestic Partner Coverage And Imputed Income
Description: Not Group Term Life/BN150


LaurenSH - November 15, 2006 01:08 PM (GMT)
We offer HL and DN coverage to domestic partners, have the plans set up for pre-tax and after-tax deductions, they all work just fine. Payroll has learned that IRS now says employers must also add the value of the dom partner plans to the the employee's taxable wages and tax it (add it as imputed income). This is not a BN150 process (can't check Reportable Life on HL or DN plan, also don't want all the calculations to apply.) May need a taxable fringe pay code, or maybe a flex plan to add the $$ and deduct back out.

Anyone doing anything with this? I'm very interested to hear from you. Evidently the IRS is ready to start pushing on this item. Thanks

Lauren



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