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 Home < Employees < Health
and Welfare Benefits < Medical
Plans < Imputed
Income
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Under current Internal Revenue provisions, 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. If you and your domestic partner are registered with the State of California and you have submitted form UPAY 850 indicating you and your partner are registered and the filing date or if you have a same-sex spouse and indicate that on the UPAY 850, 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 pay 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 partner and/or your partner's child or grandchild as your tax dependent, you should not have imputed income. |
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