In accordance with IRS regulations, there are unique cost considerations for those associates who cover a domestic partner. The key considerations are:

• The portion of the associate’s premium that is attributable to covering the domestic partner is paid on a post-tax basis rather than on a pre-tax basis like for the associate’ own coverage or that of other dependents.
• The company’s contribution toward the cost of the domestic partner’s coverage (called the fair market value) is added to your earnings for the year and is subject to the applicable taxes.
  

Capital One will provide associates with a domestic partner (under our medical, dental and visions plans) a gross-up amount to help cover the taxes owed on these benefits. If you have indicated on IRS Form W-4 that you are exempt from federal income tax withholding, no gross-up will be applied. Similarly, if you have indicated that you are exempt from state tax withholding, no state gross-up will be provided.