Domestic Partners & Your Benefits (non-IRS Eligible Dependents)

Adding a Domestic Partner and/or Domestic Partner’s Children to Your Benefits

Domestic partners and their children may be added to County health plans during open enrollment or when there is a new eligibility event. However, there is a significant cost impact to adding non-IRS eligible dependents (see information below).

If you would like to add a domestic partner (as defined by MCPR § 1-10-040) and/or their children to your health plans, you may do so:

• During Open Enrollment

OR

• When you have an eligible event to add a new dependent to your plans. Eligible events include:
  • You are within your 31-day new hire period
  • Within the last 60 days, you have had a new qualifying life event, such as:
    • County or State domestic partner registration
    • having a newly-qualifying domestic partnership as defined by MCPR § 1-10-040
    • your partner or partner’s child has lost other coverage (additional documentation is required)
    • you have a new child
    • your FTE increases from half-time to three-quarter time, or part-time to full-time

Ask us if you’re not sure if your event is eligible.

Get started by submitting the online Affidavit of Marriage or Domestic Partnership.

All changes will be effective the first of the month on or following submission of your Benefit Change event in Workday and the receipt of all needed documentation.

Cost Impacts of Adding Domestic Partners and/or Their Children

Domestic partners and their children are typically considered non-IRS eligible dependents*. This means that according to IRS regulations, they are able to collect additional tax on the value of their health coverage, which is known as "imputed income." 

Additionally, costs for health coverage for domestic partners and their children are paid on a post-tax basis. It's also important to note that adding a domestic partner and/or their child may result in a higher tax bracket for you, as imputed income is added to your gross income. 

The approximate monthly imputed income costs (taxes) for adding one non-IRS dependent^† are below. 

Note: These estimated costs are for imputed income only and do not include your cost share amounts. For the current cost share tables, see the Medical/Dental Plan Costs & Comparisons page.

_{*In rare situations, domestic partners or their children can qualify as a "qualifying relative." The Employee Benefits Office is unable to provide specific legal or tax advice.}

_{^†State-registered domestic partners/children costs have a slightly lower range than listed above.}

The imputed income tax amount may vary slightly from the numbers given above depending on your FTE, union, and the number of non-IRS eligible dependents added. Please contact employee.benefits@multco.us for a personalized amount.

Example (Adding 1 non-IRS eligible dependent):

Jan is a full-time Local 88 employee adding their domestic partner to their Kaiser medical and dental plans (click on the link for your bargaining unit on the Medical/Dental Plan Costs & Comparisons page to see your cost shares). 

The Kaiser 10/20 medical coverage cost share (Employee + 1 Dependent) is $98.96 per month. 

The Kaiser Dental 15 dental plan cost share (Employee + 1 Dependent) is $12.24 per month. 

The total amount per month that Jan pays for medical and dental coverage for themselves and their domestic partner is their Employee +1 Dependent cost share PLUS the imputed tax amounts in the table above:

• Medical: Jan would pay the Employee +1 cost share ($98.96) plus estimated imputed income taxes of $376.
• Dental: Jan would pay the Employee +1 cost share ($12.24) plus estimated imputed income taxes of $34.

TOTAL = approximately $521.20 per month: Medical: ($98.96 + $376) + Dental ($12.12 + $34)

Additional Information

What is Imputed Income?

Imputed income is the "cash value" of non-cash benefits, also known as "fringe benefits," and domestic partner health coverage is included in this category. In addition to federal income tax, imputed income is also subject to Federal Insurance Contributions Act (FICA) taxes

The “value” is the fair market value of group coverage for the non-IRS eligible dependents. This value is often referred to as Imputed Income. The tax calculation on an employee’s paycheck will be based on gross pay plus the imputed income value for the non-IRS eligible dependents’ coverage(s). As a result, the amount of income taxes withheld from an employee’s paycheck will increase.

The taxes imposed on domestic partner coverage is so high due to imputed income being taxed at a high rate and also because that tax is based on the total value of County coverage. The total value of County health coverage is the cost the employee pays plus the cost  the County pays for the coverage and can be found in the Medical/Dental Plan Costs & Comparison documents (the "Total Monthly Premium" column). 

In the example of a Local 88 employee adding a domestic partner to Kaiser 10/20 medical coverage (Employee + 1 Dependent), the total value/total monthly premium is the $106.56 the employee pays plus the $2,025.00 the County pays, for a total coverage value of $2,131.56.

Domestic Partner Registration

Formal domestic partnership registration is not required to add a domestic partner to your benefits. However, Oregon State and Multnomah County each offer paid ($60) domestic partnership registration, but have differences. You can read more about each registration type on the pages below:

• Oregon State Domestic Partnership.
• County Domestic Partnership.

If you have questions about the domestic partnership registration process (not related to benefits), please contact clerk@multco.us or call 503-988-2273.

Domestic Partner Life Insurance Enrollment Opportunity 

If requested within 30 days of a qualifying event, a domestic partner is also eligible for guaranteed coverage of life insurance through The Standard of up to $50,000. Like employee and spouse supplemental life, domestic partner coverage may be applied for at any other time, but would not have a guarantee issue amount. 

Domestic Partners and MERP 

Domestic partners are not eligible to be added as a dependent to the medical Flexible Spending Account (FSA), MERP. 

The Employee Benefits Office is unable to provide specific legal or tax advice. Employees are encouraged to discuss their situation with tax professionals, legal counselors and/or representatives from state or federal programs, if applicable, to learn more. Information is provided in accordance with state and federal laws. Provisions are subject to passage of new laws or updates/changes to regulation interpretation.