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Domestic Partner (UWMF)

Domestic Partner (UWMF) - Pay & Benefits, Benefits, Domestic Partner, UW Medical Foundation

Focus

Benefit Summary

UWMF seeks to promote acceptance of diversity in all dimensions. In light of this goal, the benefit provided to domestic partners, both same and opposite-sex, are the same benefits provided to spouses of legally married employees.

I Want to Enroll My Domestic Partner in My Benefits

UWMF allows employees to enroll their Domestic Partner and his/her eligible dependents:

  1. When the employee is initially eligible for the benefits
  2. During Open Enrollment

If you want to enroll your Domestic Partner in your benefits, you and your domestic partner will both need to sign the Domestic Partner Affidavit and complete the Declaration of Tax Status Form.It is important to be aware of the tax consequences of enrolling your DP into your benefits.

Once your domestic partnership is established, your domestic partner and their dependent children may be eligible for the following benefits: health, dental, dependent life and supplemental life coverage and LifeLock. Please see below for specific information on how to enroll your domestic partner and his/her eligible dependents in your benefit plans.

To Enroll Your Domestic Partner and His/Her Eligible Dependents

I Have a Domestic Partner, But I Do Not Want to Enroll Them in My Benefits

If you have a Domestic Partner and your relationship meets the criteria outlined, but you do not want to enroll them in your benefits, you can still complete the Domestic Partner Affidavit.This form is not required, but it is encouraged as it is used for other benefit purposes such as eligibility for bereavement or leave time.

The Domestic Partner Affidavit needs to be completed annually during Open Enrollment. 

Tax Implications

If your domestic partner or your partner's eligible dependents are not considered tax dependents for health and dental insurance purposes under federal law, the Fair Market Value (FMV) of the UWMF contribution toward their health and dental insurance coverage is considered a taxable fringe benefit. This amount will be added to your earnings as imputed income and is subject to tax withholding. The monthly imputed income amounts vary by plan. Please note that the imputed income amounts will be adjusted annually. If your non-tax dependent domestic partner and his/her eligible dependents are enrolled in your health or dental, their portion of the benefit premiums for these insurances will be deducted from your paycheck on a post-tax basis.

Note: The benefit premiums for Dependent Life, Supplemental Life Insurance and LifeLock coverage for yourself and your eligible dependents are always deducted from your paycheck on a post-tax basis.

You are responsible for determining the tax dependent status of your domestic partner and his/her eligible dependents when you add them to your insurances. In order to be considered a tax dependent, your domestic partner must meet the federal qualifications for a "qualifying relative." Consult IRS Publication 501 or the IRS Form 1040 Instructions, pages 17-20, for more information.

In general, the IRS requires that a "qualifying relative" meet four tests:

  1. The person does not meet the "qualifying child" tests
  2. The person must live with you all year as a member of your household (and your relationship must not violate local law)
  3. The person’s gross income must be less than $4,000 for the year however, under Internal Revenue Service Notice 2004-79, this gross income limit does not apply for purposes of determining tax dependent status when you are covering the person on your health insurance policy. For health insurance purposes, the domestic partner only needs to meet the remaining three tests to be a qualifying relative.
  4. You must provide more than half of the person’s support for the year

The list above should not be used as the sole source of information for determination of your domestic partner’s tax status. UWMF staff cannot provide tax advice. The IRS tests are described in detail in IRS Publication 501. In addition, you should consult with your tax advisor or the IRS if you have questions on how the federal rules apply to your situation.

Please consult your professional tax advisor before adding a domestic partner to your benefits to fully determine how your specific tax situation may be affected.

FAQ

Are domestic partners eligible for coverage on the dependent life insurance plan?

Yes, they are covered with a benefit of $10,000. If you wish to cover your domestic partner on dependent life insurance you need to resign the affidavit.

Does my domestic partner and his/her dependents qualify under flexible spending?

No. The IRS does not recognize domestic partners as legal spouses.

How do I learn more and/or enroll in the Domestic Partner Program?

Please review the UWMF Domestic Partner Statement and Policy. If your relationship meets the criteria as outlined in the policy, you and your domestic partner both need to sign the Resources. You'll want to make sure you understand the tax consequences.

If I want to continue domestic partner coverage for health and/or dental insurance, do we need to resign the affidavit?

Yes.  You do need to resign the affidavit every year during open enrollment

Where can I find what qualifies someone as a domestic partner for insurance?

You can find this information in the UWMF Domestic Partner Statement and Policy, located in the policies section of U-Connect.

Resources