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My company is adding imputed income to my checks for my domestic partner, even tho I can claim her as my dependant on my tax returns. What do I do? HR isn't helping.

I've talked to HR about removing the imputed income from my checks, as it has caused me to make less at the end of the day. They weren't doing this at first now they are, and I noticed a major difference in take home pay. What do I do? My HR department is completely clueless on the subject.
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3 Replies

My company is adding imputed income to my checks for my domestic partner, even tho I can claim her as my dependant on my tax returns. What do I do? HR isn't helping.

You have to ask what cost is being covered by your company that represents the imputed income to understand why they are doing that. 

As an aside, does your domestic partner have no income?

rjs
Level 15
Level 15

My company is adding imputed income to my checks for my domestic partner, even tho I can claim her as my dependant on my tax returns. What do I do? HR isn't helping.

There is probably a Payroll department separate from HR. It would be part of Accounting. Try asking the Payroll department. They probably know exactly what the imputed income is for and can explain it to you.

My company is adding imputed income to my checks for my domestic partner, even tho I can claim her as my dependant on my tax returns. What do I do? HR isn't helping.

You need to understand both the laws and rules for your employer.  Under the law, you can only make changes to your insurance as the result of a "life event" (within 30 days) or during your company's open enrollment period.  However, the employer may also have rules regarding when you can enroll and when you can make changes, and what kind of proof is required that your DP is your tax dependent.

 

If you enrolled your DP at the most recent open enrollment event, and provided proof at that time that your DP qualified as your tax dependent, you should not be assessed imputed income.  If you enrolled your DP in 2023, and they were not your tax dependent in 2023, but will be your tax dependent in 2024, you might have been required to inform the company of that fact during the open enrollment period.  If you missed open enrollment, you may have to wait for the next open enrollment to make any changes.  

 

(For example, open enrollment for 2024 was held from November 1-15, 2023, and your DP was employed at that time.  Your DP was terminated or resigned on December 31, 2023 and you plan that your DP will be your dependent for 2024.  Because you missed the open enrollment, you can't change their status until next year.  Losing their job would have been a "life event", but you would only have 30 days from the life event to inform your employer to change their status.)

 

Of course, if you get married, that is also a life event that will allow you to change their status from DP to spouse which will remove the imputed income. 

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