DawnC0
Intuit Alumni

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It means, because most unmarried partners don't qualify as dependents, most employees who use domestic partner benefits must use after-tax dollars to pay their partner's portion of the premium, rather than the pretax money they can use to pay their own premiums. What's more, the premiums paid by the company are added to the employee's gross wages as taxable income, so the employee must pay Social Security and Medicare taxes on the phantom wages.