Same-Sex Tax Assistance Reminder: If you are currently receiving Tax Assistance, please be sure to renew your application (if applicable) in order to continue to receive this assistance without interruption; otherwise, your tax assistance will expire December 31.
Note: If you applied for Tax Exemption, no action is required at this time, unless you no longer meet the criteria for Tax Exemption. Contact Employee Services at 203-432-5552 or by e-mail at firstname.lastname@example.org with questions.
How are same-sex spouse rates determined?
Same-sex spouse contributions for medical and/or dental premiums are deducted from your paycheck monthly on a post-tax basis. The net payroll deduction is the same as it would be for an opposite-sex spouse; however, due to federal requirements, the calculation is more complex.
In accordance with section 152 of the Internal Revenue Code, a same-sex spouse is not an eligible dependent; therefore, the premium you pay is not treated the same as it is for two-person or family coverage.
Faculty and staff are charged the full cost rate for single medical and/or dental premiums for their same-sex spouse while a subsidy from Yale is added to gross earnings to reduce our regular rates for two-person or family coverage.
Here's an example:
- The premium for medical benefits is $100 (deduction), less the same-sex marriage subsidy of $60 (income) which equals an employee cost of $40.
- Deductions for same-sex marriage medical and/or dental premiumns are after-tax and are not considered tax deductible under IRS regulations.
- The Yale subsidy is also fully taxable.
For additional information, view the following resources:
- Yale University Civil Union and Same-Sex Marriage policy
- Instruction and policy regarding Tax Assistance*
- Instruction and policy regarding Tax Exemption
- Other Frequently Asked Benefits Questions
* Effective 1/1/2013 for Clerical & Technical, Service & Maintenance and Security staff