Google To Pay LGBT Employees Extra To Cover Tax Inequities

Beginning today Google will cover the added tax charged to LGBT employees whose partners are covered by their insurance plan.

“It’s a fairly cutting edge thing to do,” said Todd A. Solomon, a partner in the employee benefits department of McDermott Will & Emery, a law firm in Chicago, and author of “Domestic Partner Benefits: An Employer’s Guide.” Google is not the first company to make up for the extra tax. At least a few large employers already do. But benefits experts say Google’s move could inspire its Silicon Valley competitors to follow suit, because they compete for the same talent. Under federal law, employer-provided health benefits for domestic partners are counted as taxable income, if the partner is not considered a dependent. The tax owed is based on the value of the partner’s coverage paid by the employer.

Workers with domestic partners on their insurance plans pay an average of $1069 more than married employees whose plans include their spouses. Google will make the payments retroactive to the beginning of this year.