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.