CHAPTER
6
Attracting and Retaining Top-Talent: Same-Sex Partnership Benefits and Compensation
1. How to develop same-sex partner benefits; what should be included. Health, welfare, and retirement benefits are vital in recruiting and retaining top employees. Offering benefits to domestic and civil union partners of employees sends a message that the firm values all of its employees equally. Prior to June 1, 2011 it was up to the employer whether to offer benefits to the partners of their employees. As of June 1, 2011 the law changed, and generally all insurance policies issued in Illinois must provide the same benefits to partners in a civil union as those in an opposite-sex marriage. This means that if an employer’s insurance policy allows for coverage for a married spouse of a policyholder, it must also provide for the same coverage for a civil union partner of the policyholder. On the same note, if a policy covers the dependent child(ren) of a married policyholder, it must also cover the child(ren) of a policyholder in a civil union. In addition to this requirement, employers may choose to offer other benefits such as tuition assistance, bereavement leave, relocation expenses, adoption assistance, and many other benefits. Keep in mind that federal law does not currently recognize Illinois civil unions. Civil union partners may qualify as dependents under Internal Revenue Code 152, but they only would do so if they live in the same household and the employee provides over 50% of the support of the partner. If the partner does not qualify as a tax code dependant under this test, employees must pay federal income tax on the value of any health benefits that the employer provides to their civil union partner. The employer’s cost of providing benefits to the employee’s partner is imputed as income to the employee. The imputed income is then treated as wages for federal income tax and payroll tax purposes. While married employees do not have to pay these taxes, civil union partners do. 20 |
A GUIDE TO LGBT-INCLUSIVE LAW PRACTICES