Domestic Partner Tax Info

Inframark is pleased to support its employees by offering health and welfare benefits that can be extended to eligible domestic partner/ child(ren)

If you plan on enrolling a qualified domestic partner/ child(ren), you should be aware that there are tax implications under federal and state law as it applies to health benefits and covering domestic partner/ child(ren). Under current IRS regulations, the value of employer-paid benefits for a domestic partner/ child(ren) who does not qualify as your tax dependent must be treated as imputed income. This means:

• The fair market value of the coverage provided for your domestic partner (and their dependents, if applicable) will be added to your taxable wages.
• This imputed income is subject to Federal Income tax, Social Security, and Medicare withholding.
• State tax treatment may vary depending on your state of residence.

Inframark will automatically calculate and report this imputed income on your paycheck and annual Form W-2. This will not affect your actual gross pay, but it will increase your taxable income each year. If you have any questions about how this may affect your taxes, we recommend consulting a qualified tax advisor.

In addition, should you elect medical, dental and or/vision coverage that includes domestic partner enrollment (and their dependents, if applicable) your payroll deductions will be split between a pre-tax amount and a post-tax amount.

• The pre-tax deduction amount will cover the enrollment cost for you and your eligible dependent child(ren).
• The post-tax deduction amount will cover the enrollment cost for your domestic partner and their eligible dependent child(ren).

Your deduction must be split as the post-tax portion of your deduction is not eligible to reduce your taxable income per IRS guidelines.

Please see the following IRS publications for additional information: IRS FAQ Domestic Partnership and 2026 Tax Guide to Fringe Benefits.

The Inframark HR Benefits team is available if you have any questions regarding the above information. They may be reached via email at benefits@inframark.com.