Domestic Partnership News Archive
October 01 - October 06, 2000

Friday, October 6, 2000

Few Vermonters registering under the new 'civil union' law

A story published in Planet Out reports that even though a new "civil union" law gives same-sex couples who register with the state of Vermont all of the benefits of marriage under state law, only a small number of gay and lesbian Vermonters have actually registered.  The new law went into effect on July 1, 2000.

From July 1 through early this week, a total of 809 civil unions have been recorded by the state Health Department, a step which happens only after the civil union licenses have been certified by a clergymember or justice of the peace. That's roughly one-third of the number of marriages contracted in Vermont in the same period in 1999.

But only about one-fourth of the unions were between Vermonters, with others having come from all but a handful of the other states (the largest numbers from New York, Massachusetts and California) and from eight foreign countries.

The story says that the median age of the parties involved is 40, nine years higher than the median age of married couples, ranging from four couples in the 18 - 20 years range to one individual at least 75 years old (with a partner in the 70 - 74 years range). It's believed that most of the couples have already been committed relationships for some time, although that is not information collected by the state; one town clerk told the committee she'd issued a license to one couple on their 43rd anniversary.

Unions between women have outnumbered those between men by nearly two to one.

Some lawmakers were unwilling to support civil unions unless some provision was made for other kinds of interdependent relationships between blood relatives who cannot marry. Although nearly lost in the political debate over civil unions, the same law did establish much more limited relationships of "reciprocal benefits" available to blood kin regardless of gender. To date, no blood relatives have registered under this provision, although the Department of Health has mailed out a few applications.

Thursday, October 5, 2000

Delta Airlines will give benefits to same-sex partner of its employees

A story published today by the Associated Press reports that Delta Air Lines will offer health-care coverage and other benefits to same-sex partners of its U.S. employees beginning July 1.

Bereavement leave and family medical leave benefits will be available to partners of gay employees immediately, spokesman John Kennedy said. The airline has been  studying ways to extend benefits to employees' same-sex partners for more than a year, he said.

"It's a business decision,'' Kennedy said. ``Delta is committed to attracting and retaining a diverse work force, and our goal is to ensure Delta provides an inclusive   environment for all people to work in.''

Delta's announcement follows a recent decision by another Atlanta-based company, Coca-Cola, to provide benefits for homosexual partners of its U.S. employees beginning Jan. 1.

Several other airlines also have agreed to extend such benefits. United, the nation's largest airline, changed its benefits policies more than a year ago, and was   followed quickly by American Airlines and US Airways.

Survey shows that 29% of employees work a companies with domestic partner benefits programs

A story in this weeks issue of "Connect," the newsletter of benefits.com reports that domestic partner benefits are becoming more commonplace, with nearly one-third of workers in a recent survey saying such benefits are made available by their employers.

In the past year, the number of U.S. employers offering domestic partner benefits jumped by 25%.  As of August 2000, a total of 3,572 companies, higher learning institutions, and state and local governments offered health insurance and other benefits to employees’ domestic partners, up from 2,856 in August 1999.

Fortune 500 companies showed an even more dramatic 46% leap in the number offering domestic partner benefits. As of August, 102 of  these companies offered or planned to offer the benefits, up from 70 the year before.

Most (65%) of employers with domestic partner benefits offer them to same-sex and opposite-sex partners, according to a recent report from the Human Rights Campaign. The remaining  35% offer the benefits to same-sex partners only.

And according to a Benefitnews.com QuickPoll this week:

71% of respondents work for a company that does not offer domestic partner benefits at all,
20% work for companies that offer benefits to both opposite- and same-sex partners,
7% work for companies that offer benefits to same-sex partners only, and
3% work for companies that offer benefits to opposite-sex partners only.

Tuesday, October 3, 2000

Domestic partner benefits can run up tax bill for employees

A story published today in USA Today reports that if you're thinking of adding your partner to your plan, take a hard look at the potential impact on your tax bill before signing up. Depending on your circumstances, the costs may outweigh the benefits.

Unlike health benefits paid to employees, their spouses and their dependents, benefits for domestic partners generally are not exempt from federal taxes, says William Massey, editor of RIA's Federal Taxes Weekly Alert. Unless your partner is a dependent, the benefits will be treated as income, he says.

The Internal Revenue Service's position on this issue isn't new: It outlined its interpretation of tax regulations in a 1996 private letter ruling to companies with domestic partner benefits. But it's taking on a greater importance now that more companies are offering domestic partner benefits.

According to a new report from the Human Rights Campaign, a gay rights organization, 3,572 employers offer health benefits for domestic partners, up 25% from a year ago. Domestic partner benefits are increasingly becoming an issue in contract negotiations between companies and union employees. ''For members of the gay community, it's a welcome opportunity to choose which company to work for,'' says Walter Schubert Jr., CEO at gfn.com, a financial Internet site.

The IRS, however, still categorizes taxpayers two ways: married or single. So even if your employer recognizes non-traditional households, the IRS exemptions for employee health benefits do not apply.

For example, if you earn $50,000 a year, and your health benefits are valued at $300 a month. If you receive benefits on behalf of your partner, your employer will report $3,600 as income on your W-2. At a tax rate of 28%, that works out to $1,008 in additional taxes. You'll also pay 6.2% in Social Security taxes and 1.45% in Medicare. Altogether, the benefits will cost you $1,283 in taxes. You may also owe state taxes.

The same holds for partners of the opposite sex, unless your state recognizes common-law marriages and you meet the state's definition, Massey says. Only 13 states recognize common law marriage.

A worker can avoid paying taxes on health care benefits if his or her partner is a dependent. But the Internal Revenue Service has a very narrow definition of that term.

In addition, the IRS prohibits taxpayers from naming someone as a dependent if the relationship violates local law, Massey says. If your community has a law on the books that prohibits fornication or unmarried cohabitation, the IRS may not consider your partner to be a dependent.

Sunday, October 1, 2000

Universal Studios extends benefits to domestic partners of Florida employees

Universal Studios Florida, with 11,800 employees, will start offering health and other benefits to domestic partners, both gay and straight. The benefits, which take effect today, also will cover dependents of domestic partners.

The policy contrasts with that of Walt Disney World, which offers health insurance to employees' same-sex partners but not to unmarried heterosexual partners.