Imputing Employee Income for Domestic Partner Coverage
Compliance Minute Series
Many employers choose to provide health plan coverage to their employees' domestic partners and sometimes the domestic partner's children.
Employers who pay for health insurance for domestic partners or other beneficiaries that are not legal spouses or dependents as defined by the IRS, must report the fair market premium value (FMV) of these benefits as additional employee wages or "imputed income," resulting in increased taxable compensation for federal and state income taxes.
For a brief overview on the "Who, What, & Hows" of Imputing Income for Domestic Partner Coverage check out the most recent episode from our "Compliance Minute" video series. Click to download the slides from the video.
Marshall & Sterling clients should contact their Account Manager with any questions and for assistance in completing this calculation.
As always, please do not hesitate to reach out with any comments or concerns. For more ACA information and Compliance Minute videos, click here.