Tax Withholding
When you add or lose a family member, you may want to change your tax withholding. You can make the change online.

Imputed Income
Under Internal Revenue rules, the value of employer-paid medical coverage for anyone who is not your tax dependent is considered imputed income and is subject to FICA (Social Security and Medicare), federal income taxes, and any other required payroll tax. This includes all family members (except legal spouses) who are not claimed by you as a tax dependent (e.g. children for whom you share tax dependency with a former spouse, domestic partner, etc.)

If you and your domestic partner are registered with the State of California, you will not have imputed income for California income tax purposes. Any out-of-pocket premium cost for medical coverage of your partner (and/or your partner's child/grandchild) will be deducted from your retirement benefit on a pretax basis for California income tax purposes. For federal tax purposes, you will have imputed income and the out-of-pocket premium cost must be paid on an after-tax basis.

If you claim your family members as your tax dependents, you should not have imputed income.

Quick Links

• Your Group Insurance Plans [PDF]
• Group Insurance Eligibility Factsheet for Employees [PDF]
• Benefits for Domestic Partners [PDF]