Yes. Covering a domestic partner or the partner's eligible children
when they are not tax dependents increases the amount of money in your
pay before taxes. While payroll excludes health care premium costs from
your taxable income, the IRS doesn't view non-tax dependent domestic
partners and their children the same as they would your spouse and
dependent children for tax purposes. They require that the added value
of the coverage to be added to your pay. the value of the coverage is
added to your wages. This not only increases your pay but also the taxes
you owe. So, you take home less pay.
View the imputed value amounts for each health plan and tier level. This chart provides you the with amount that will be added to your monthly pay before payroll tax deductions. PEBB cannot help you with how much your payroll tax deduction will be; contact your agency payroll.
If your domestic partner or your partner’s children are your tax dependents, fill out the tax status form on our forms page and file it with your agency to avoid the imputed value and increased taxes. Submit the form for each new tax year during which your domestic partner or partner's children will be your tax dependents.