Cash wages $1000
Pre-tax deductions -$100
Tax withholding -$232
After-tax deduction -$75
Total cash to you = $593
The additional $175 of imputed income is not actually money that you receive. It is reported to the IRS as taxable income because it is a benefit that is not eligible for a tax deduction. But it doesn't change your cash wages.
Another way to look at it is:
Value of your compensation (cash wages plus benefits) $1175
Pre-tax deduction for partner insurance (company share) -$175
Other pre-tax deductions -$100
Withholding -$232
After-tax deduction for partner insurance (your share) -$75
Net cash in your pocket = $593
Note that the imputed value of insurance will go away if you get married.
The same calculation would apply if you received certain other taxable benefits from the employer, such as personal use of a company car. If the company allows you to use a business car for personal use, the value of the personal use is added to your taxable income on your W-2 even though it is not part of your take home pocket money wages.
