Maybe. Your employer would have to decide to increase your compensation if you decide to drop your domestic partner from your insurance. Just dropping her from your insurance will not automatically increase your compensation by $803.
Your
domestic partner does not qualify as a tax dependent under Internal Revenue Code Section
152 and Notice 2010-38, so the Fair Market Value (FMV) of the employer
contribution toward that coverage is considered a taxable fringe benefit,
subject to tax withholding. This calculated fringe benefit is known as imputed
income, and the fringe benefit will increase your taxable income.
