NEW YORK, June 1, 2012 Effective June 3, Deloitte will adjust salaries to offset the imputed income charged to its professionals who cover same- and opposite-sex domestic partners on their medical and/or dental plans.
Deb DeHaas, chief inclusion officer, Deloitte LLP, states, “This decision is great news not just for our gay, lesbian, bisexual, transgender, and heterosexual professionals who cover their domestic partners, but for all of Deloitte. With a small but growing number of companies who offer this benefit, Deloitte is part of an elite group of progressive employers who are leading the way in creating a cultural change.”
Under IRS regulations, domestic partners do not qualify as tax dependents, so healthcare premium payments made by Deloitte on behalf of domestic partners are treated as taxable income. With this new domestic partner benefit, Deloitte will pay for the tax impact by grossing up salaries for the value of the premium provided to a domestic partner. As a result, there will be no impact to net pay.
