Thursday, November 06, 2008

Domestic Partners, Same Sex Marriage

You all have probably seen that it appears Prop 8 is going to pass. Did you know however that regardless of the passage of Prop 8 that if you have a Domestic Partner of one of your employees and they are paying their health insurance premiums through your group plan that the Federal government does not allow a deduction of the premiums from the Domestic partners income tax. In fact they will impute a cost on this. This is also true if you have a same sex marriage.
The state of California does allow a deduction.
I don't want to confuse the issue but I have found a number of small businesses treat the money the employee pays to the group plan for their employees and maybe children as if it automatically is pretax dollars. This is not the case unless you have a 125 plan or maybe a health reimbursement account set up.
Please consult your accountant on this and if you would like to receive information on how the Federal government imputes the tax please let me know.

Scott Hauge
President, Small Business California

1 comment:

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