Common use of Taxation of Domestic Partner Medical Coverage Benefits Clause in Contracts

Taxation of Domestic Partner Medical Coverage Benefits. If a domestic partner (and the domestic partner’s children, if applicable) is not an eligible dependent within the meaning of Section 152 of the Internal Revenue Code, the value of the partner’s coverage (and coverage for the domestic partner’s children, if applicable) is treated as income for federal tax purposes. This value is defined as the difference between the College’s cost of providing family coverage less the College’s cost of providing individual coverage and will be added to the employee’s biweekly salary as “imputed income.” If an employee covers other dependents who are within the meaning of Section 152 in addition to a domestic partner, then the biweekly imputed income amount will be pro-rated to exclude the value of the coverage for such eligible dependents.