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Appendix E
The University Of Chicago Hospitals
Date: November 13, 2000
To: Mr. Robert Mueller
From: Mary Ann Nolan Director, Benefits
Re: Domestic partner Health Plan Benefits
You and your domestic partner are currently enrolled in the Hospitals' health plan. We have recently reviewed the Internal Revenue Code regulations on taxation of domestic partner benefits and have determined that both the employee and employer premiums are subject to taxes.
Currently, you do pay tax on the employee portion of the premium, attributed to the addition of your domestic partner, by deducting it on an after tax basis. But, you do not currently pay taxes on the Hospitals' portion of the premium. You will now be required to do so.
The amount that will now be taxed is equal to the difference between the Hospital's premium for single and family coverage. For calendar year 2000, you will have to pay taxes E-2
on $2,971.92 (this amount will be added to your gross income).
Payroll will automatically deduct the appropriate Social Security (FICA) tax. Youo will have two options to pay the additional federal and state taxes. You may have the taxes deducted over the remaining payperiods of this calendar year; or you may make the adjustment when you file your 2000 tax return. If you wish to have additional taxes deducted this calendar year, please complete the attached form and submit it to the Payroll Department, room W04.
As of January 1, 2001, the Hospitals will apply the appropriate taxes for your domestic partner benefits on a quarterly basis.
If you have any questions, please call me at extension 2-0203.
Enclosure
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