Domestic partner benefits
At PCC, domestic partners may participate in any benefit program the State of Oregon and federal government allow. Commonly utilized programs include tuition waiver, medical, dental and vision insurance, optional life and accidental death insurance, employee assistance program, long term care, and homeowner and auto insurance. The federal government does not recognize domestic partnership, so participation in programs governed by IRS regulations such as flexible spending accounts is not allowed unless the domestic partner qualifies as a tax dependent.
To utilize these benefits, a certificate of domestic partnership must be filed with the Benefits Office.
Can my partner’s dependent children also participate in benefits programs?
Yes. Dependent children of domestic partners may participate in most programs in the same way that stepchildren participate in benefits programs. The only exception is the tuition waiver program. To be eligible, a child needs to be under the age of 24 and defined as a dependent under Federal IRS rules.
Are there any financial ramifications for domestic partner participation in benefits programs that differ for married couples who participate?
Yes. The Oregon Department of Revenue has guidelines about payroll taxes that must be collected when domestic partners benefit from employer provided programs. While the premium dollars that exceed your monthly college contribution (cap) will be deducted from your payroll on a pre-tax basis, the value of the benefit for your domestic partner will be subject to tax as follows:
- Federal taxes – because domestic partnership is not recognized by the federal government/IRS, the deduction for benefits on a pre-tax basis is not allowed for domestic partners. Employers are required to deduct the value of the benefit extended to domestic partners and their dependent children on a post-tax basis. The portion of the deduction that is attributable to the employee will remain pre-tax.
- Based on the Tanner Decision, the Oregon Department of Revenue requires that we apply the same taxation policy that the IRS mandates only when the domestic partnership is opposite sex.?Same sex partners are not required to pay State of Oregon income taxes on the value of the benefits provided to their partners through PCC, but are required to pay federal income taxes on that value.
You are strongly encouraged to discuss how premiums and taxes are handled for domestic partners with a Benefits Specialist.
What documentation is required?
A certificate of domestic partnership is available online or from a Benefits Specialist. Once the certificate is on file with the Benefits Office, it may still be necessary to complete additional enrollment forms. For example:
- Adding a partner to medical, dental, or vision insurance requires the?certificate of domestic partnership and a benefits enrollment or a mid-year change form.
- The tuition waiver program requires the certificate of domestic partnership?and a tuition waiver request.
Programs such as EAP and group homeowners and auto do not require additional paperwork beyond the certificate of domestic partnership. Check with a Benefits Specialist about requirements for each benefit.