Domestic Partner Benefits

Section 106 of the Internal Revenue Code provides requirements for what employers must include in gross income for employer-provided coverage under an accident or health plan (includes both medical and  dental coverage). Coverage provided for individuals other than the employee and his or her dependents, as defined by the IRS, is taxable income to the employee. 

For employees enrolling domestic partners and/or their domestic partner’s dependents in University health plans, the University needs to include the incremental fair market value (FMV) of the coverage provided (defined as the incremental costs between “employee only” and “employee plus one” coverage levels) as taxable income to the employee UNLESS the employee certifies that their domestic partner is a tax dependent. This is accomplished in one of two ways:

1. For Legally Married Same Sex Partners: On August 29, 2013, the US Department of the Treasury and the Internal Revenue Service (IRS) issued Revenue Ruling-2013-17 that declared that same sex couples, lawfully married in states [1] that recognize their marriages, will be treated as married for federal tax purposes. “The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions…”As such, the University recognizes the domestic partner as your tax dependent if you have provided documentation (marriage certificate, other government documents, etc.) to the University’s Benefits Office.

NOTE: If you have not yet provided this documentation to the Benefits Office, please do so immediately to ensure that you are not taxed incorrectly.

2. The employee submits the Domestic Partner Enrollment Form and completes Section B certifying that the domestic partner is your legal tax dependent under IRS Section 152. (See Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions). While the OHIO document Tax Information Sheet for Domestic Partners contains summary information about tax dependents, you are encouraged to confer with a tax professional about this matter. If you certify that those individuals covered by your health plan benefits are tax dependents, the university will not withhold taxes on the value of health benefits for your domestic partner and/or their dependents


[1] “The term ‘state’ means any domestic or foreign jurisdiction having the legal authority to sanction marriages.

Taxable Health Plan Benefit Schedule EXAMPLE- One dependent

Medical Coverage Level: EE + One (Domestic Partner OR a child of a Domestic Partner)
Dental Coverage Level: EE + One (Domestic Partner OR a child of a Domestic Partner)
Domestic Partner Benefit Tax Status: Taxable

# of Pay Periods in Calendar Year 18
 (Faculty) 
24
(Administrator)
26
(Classified, Admin Hourly)
26
(AFSCME)
Tax Assumptions
*FMV of Taxable Medical Coverage/ per Pay $424.67 $318.50 $294.00 $384.46  
*FMV of Taxable Dental Coverage/ per Pay $17.33 $ 13.00 $12.00 $12.00  
Taxable Coverage/ per Pay Period $442.00 $331.50 $306.00 $396.46  
Employee Federal Taxes/ Pay Period $110.50 $ 82.88 $ 746.50 $99.12 25%
Employee State Taxes/ Pay Period $ 15.58 $ 11.60 $10.71 $13.88 3.5%
Employee Local Taxes/ Pay Period $ 7.29 $ 5.47 $ 5.05 $ 6.54 1.65%
Employee School District Taxes/ Pay Period $ 4.42 $ 3.32 $ 3.06 $ 3.96 1%
Medicare Taxes/ Pay Period $ 6.41 $ 4.81 $ 4.44 $ 5.75 1.45%
Total estimated additional taxes per pay in 2017 $144.09 $108.07 $ 99.76 $129.25  

*FMV= Fair Market Value

Please note: the individual tax rate may vary from the estimated taxes above based on Individual's tax bracket.

Taxable Health Plan Benefit Schedule Example- 
More than One Dependent

Medical Coverage Level: EE + Family (Domestic Partner plus at least one dependent child of a Domestic Partner)
Dental Coverage Level: EE + One (Domestic Partner plus at least one dependent child of a Domestic Partner)
Domestic Partner Benefit Tax Status: Taxable

# of Pay Periods in Calendar Year 18
 (Faculty) 
24
(Administrator)
26
(Classified, Admin Hourly)
26
(AFSCME)
Tax Assumptions
*FMV of Taxable Medical Coverage/ per Pay $848.67 $663.50 $587.54 $769.38  
*FMV of Taxable Dental Coverage/ per Pay $37.33 $ 28.00 $25.85 $25.85  
Taxable Coverage/ per Pay Period $886.00 $664.50 $613.38 $795.23  
Employee Federal Taxes/ Pay Period $221.50 $166.13 $153.35 $198.81 25%
Employee State Taxes/ Pay Period $ 31.01 $ 23.26 $21.47 $27.83 3.5%
Employee Local Taxes/ Pay Period $14.62 $10.96 $1.12 $13.12 1.65%
Employee School District Taxes/ Pay Period $ 8.86 $ 6.65 $ 6.13 $ 7.95 1%
Medicare Taxes/ Pay Period $12.85 $ 9.64 $ 8.89 $11.53 1.45%
Total estimated additional taxes per pay in 2017 $288.84 $216.63 $199.96 $259.25  

*FMV= Fair Market Value

Please note: the individual tax rate may vary from the estimated taxes above based on Individual's tax bracket.

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