Human Resources News & Insights

Same-sex benefit trend: Boosting comp to make up for tax disparity

Employers looking for a unique way to make their benefits packages stand out may want to explore what could turn out to be a national trend.

Facebook became the most recent company to cover the extra costs homosexual employees must pay when their same-sex partners receive domestic partner benefits.

Employer-provided health benefits for domestic partners are currently counted as taxable income under federal law if an employees’ partner isn’t a dependent.

This ends up costing same-sex couples about $1,000 per year more than a heterosexual married couple with the same healthcare coverage.

Facebook has decided to essentially provide extra compensation to cover those costs for employees with same-sex domestic partner benefits.

The social media giant joins a growing list of others — Google, Cisco, Bain & Company, Barclays Bank and others — doing something similar.

Bain & Company, for example, has opted to provide employees with a lump sum reimbursement at the end of each year to account for the cost.

Print Friendly

Subscribe Today

Get the latest and greatest Human Resources news and insights delivered to your inbox.