Results for Benefits Enrollment

Taxation of a Domestic Partner's Benefit Coverage

Unlike a legal spouse, a domestic partner isn’t generally a dependent for federal income tax purposes. This means:

  • Rockwell Automation’s share of the cost of providing benefits for your partner (and his or her children) is reported to the IRS as taxable “imputed income” to you.
  • Any benefit plan contributions that you pay for your partner (and his or her children) can’t be made on a before-tax basis.

There may also be similar issues with state and local taxes where you live.

You need to allow for this when you’re pricing your coverage options, especially medical coverage. Because these tax issues would also apply if you were a dependent on your partner’s employer-provided plan, you may want to check the cost-effectiveness of obtaining separate coverage as two individuals.

Please note, too, that Rockwell Automation adds a surcharge for coverage of any spouse or partner who can obtain medical coverage from his or her own employer.