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Domestic Partner Benefits Tax Treatment

 

Summary

Temple University offers Domestic Partner benefits to all of its non-bargaining unit employees and to any bargaining unit employees whose contract provides for such benefits.  To be eligible for any benefits under this policy, an eligible employee must certify that he/she is a member of a Domestic Partnership under Temple University’s Domestic artnership policy. Certified Domestic Partners are eligible for health, dental and vision benefits.

In addition, certified Domestic Partners are eligible for any benefit that would otherwise be available to/for a spouse under the Tuition Remission Policy, Bereavement Leave Policy, Sick Leave Policy, FMLA Policy, and Payment of Outstanding Wages Upon Employee’s Death Policy. Children of certified Domestic Partners are eligible for benefits on the same basis as dependent step-children.

Tax Information

The premiums and employee contributions charged to employees who are eligible for and elect insurance coverage for their certified Domestic Partner and/or dependent children of a certified Domestic Partner under this policy are the same co-pays charged to University employees electing insurance coverage for their spouses and/or covered children.

IRS regulations require that Temple University include the value of the benefits provided for certified Domestic Partners who do not qualify as a spouse or dependent of the University employee, as defined in the Internal Revenue Code Section 152, as taxable to the employee or faculty member to the extent that the benefit is subsidized in whole or part by the University and/or paid for with employee contributions which are deducted on a pre-tax basis.

Subsidized Benefits

The University subsidizes a portion, or all, of the medical, dental and vision benefits provided to its employees and faculty members. The University will extend this subsidy to coverage for domestic partners. The employee portion of the cost of domestic partner coverage will be paid on an after-tax basis. The extent that coverage for a domestic partner is paid on an after-tax basis, the value of the benefit would not be included in the income of the employee for federal tax purposes. The after-tax contribution is the difference between the employee’s share of the cost of single employee coverage and the additional cost for a domestic partner.

The value of the University’s subsidy will be included in the income of the employee or faculty member as imputed income. This taxable amount would be the difference between the University’s contribution for the employee’s individual coverage and the additional University subsidy toward the cost of coverage for a domestic partner.

The amount of the employee benefit cost sharing and University subsidy varies amongst different bargaining and non-bargaining employees and faculty members.

 

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