When an employer offers domestic partner benefits What does this mean?

The term “domestic partner benefits” refers to employee benefit plans that offer to non-married couples the same or similar benefits as those provided to married couples. Although domestic partner benefits are increasingly popular, the rules that govern those benefit plans are not uniform.

What type of a benefit are domestic partner benefits?

Covered Benefits Many domestic-partner benefit plans offer only minimal, low-cost benefits such as funeral leave, family leave, relocation expenses, use of employer facilities and inclusion in company functions. Of greater importance to employees is medical or dental insurance.

What is domestic partner status?

In the United States, domestic partnership is a city-, county-, state-, or employer-recognized status that may be available to same-sex couples and, sometimes, opposite-sex couples.

What are the benefits of having a domestic partner?

Domestic partners are entitled to some of the legal benefits of marriage, but not all. Health insurance benefits provided to a domestic partner are considered taxable income, whereas those provided to married partners are not. The transfer of assets between partners is often taxable as well.

Is the income of a domestic partner taxable?

Health insurance benefits provided to a domestic partner are considered taxable income, whereas those provided to married partners are not. The transfer of assets between partners is often taxable as well. Couples must still file separate federal tax returns and aren’t entitled to receive Social Security benefits from one another.

Are there any drawbacks to a domestic partnership?

Drawbacks of a domestic partnership can be lack of coverage through your partner’s employer-sponsored health insurance, lack of survivors benefits unless you live in a very liberal city such as New York City, where you could be eligible to receive survivor benefits.

Do you get health insurance for your domestic partner?

While some employers (about 25% in the U.S.) offer health benefits to domestic partners, it is by no means a standard. That’s why this is an important factor to consider, since buying your own health insurance can be expensive.