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Deloitte ‘grosses up’ pay to cover tax on domestic benefits

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in Compensation and Benefits,Human Resources

Deloitte has adjusted the salaries of employees who include domestic partners on their medical or dental plans to help offset the taxes they have to pay on the benefit.

Because the IRS does not allow one domestic partner to claim the other as a tax dependent, health care premium payments made by an employer on behalf of a domestic partner are treated as taxable income.

Deloitte’s new benefit “grosses up” salaries for the value of the premium provided to a domestic partner, so the employee sees no impact to his or her net pay.

The perk is available to employees living with same- or opposite-sex registered domestic partners.

Contact: Lori Grey, (212) 492-2865.

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