Indemnity Dental Insurance

My work takes my benefits out after tax, is that legal?

I recently signed up for medical/dental insurance through work. My benefits are taken out AFTER taxes. I contacted the benefits department and they say its because the IRS doesn't recognize domestic partners as dependents. My parnter had me on his benefits at American Airlines and he had the benefits taken out pre tax, so is FedEx breaking the law or are am I looking at Sexual Discrimination?

Public Comments

1. Since you are not related to each other by blood or marriage, the only way you can be each other's dependent is if your income is less than $3650. Since this is an extremely low hurdle, the extra cost for any insurance automatically becomes taxable income. The employee only portion of the benefit would be eligible for section 125 treatment--but only if the company is has such a plan.
2. They are correct. Only man/woman marriages are recognized.
3. Regardless of your domestic situation, companies have the option of taking benefits out either pre-tax or after tax. In order to withhold benefits pre-tax, the company has to set up a Section 125 plan.
4. Since you are not married all the monies discounted for domestic partnerships is taxable. So if the company pays 500 and you pay 100 per month for your partner the 500 is added to your income for the year. Not all companies offer benefits for domestic partnerships.
5. You are looking at the way it is.