Benefits Advisory: Valuing and Taxing Employment Based Medical Benefits Provided to Domestic Partners and Same-Sex Spouses
8/15/2004
Employers and employee organizations have for some time extended health insurance and other welfare and fringe benefits to domestic partners of their employees or members, as the case may be. This extension may be voluntary, pursuant to a state or local law, regulation or ordinance, or under the terms of a contact or collective bargaining agreement. Either way, employers that cover domestic partners confront a host of unique employment, benefits and tax issues. The nascent trend toward the recognition of same-sex marriages presents employers with similar issues as they apply to same-sex spouses.
This advisory reviews the tax rules that apply to benefits provided to domestic partners and same-sex partners.
