Business Coalition for Benefits Tax Equity

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    Business Coalition for Benefits Tax Equity - Presentation Transcript

    1. Business Coalition for Benefits Tax Equity Tax Equity for Health Plan Beneficiaries Act of 2009 (H.R. 2625 & S. 1153) November 3, 2009
    2. Partner Benefits 286 Fortune 500 companies offer health benefits to employees’ domestic partners 265 286 216 124 21 2 1990 1995 2000 2004 2006 2008 Business Coalition for Benefits Tax Equity November 3, 2009
    3. Issue: The Tax Burden for Partner Benefits Federal Law treats • Spousal health coverage as tax-exempt wages/income • Partner health coverage as taxable wages/income Increases Employer Payroll Tax and Employee Income Tax burdens Business Coalition for Benefits Tax Equity November 3, 2009
    4. Issue: The Tax Burden for Partner Benefits In Numbers... Employee with a Employee with a Single Employee Spouse Domestic Partner Annual Employee Salary $32,000 $32,000 $32,000 Monthly Employer $335 $907 $907 Contributions for Benefits Annualized $4,020 $10,884 $10,884 10,884 - 4,020 = Imputed Income -0- -0- $6,864 32,000 + 6,864 = Taxable Income $32,000 $32,000 $38,864 Employee’s 2006 Tax Liability $3,155 $3,155 $4,710 Domestic partner vs. spousal benefits: nearly 50% increase in tax liability Business Coalition for Benefits Tax Equity November 3, 2009
    5. Tax Equity for Health Plan Beneficiaries Act • Would end the tax inequities that apply to employer-provided health insurance for domestic partners – House: Introduced 5/21/2009 • Rep. Jim McDermott (D-WA) • Rep. Ileana Ros-Lehtinen (R-FL) – Senate: Introduced 5/21/2009 • Sen. Chuck Schumer (D-NY) Business Coalition for Benefits Tax Equity November 3, 2009
    6. Business Case for Support • Eliminates unfair taxation that hurts your bottom line and places an extra financial burden on employees • Eliminates administrative burdens of separate record keeping and imputed income calculations for partner benefits • Reinforces corporate reputation as a champion of workplace fairness – Drive recruitment and retention of dedicated, fair-minded employees Business Coalition for Benefits Tax Equity November 3, 2009
    7. Join the Business Coalition “attract and retainhealth benefits have beenworkforce, of our effort to Domestic partner a qualified and diverse a key part and we are pleased to support Representative McDermott’s legislation that would end the tax penalties we and our employees face when we make these benefits available. ” – Julie Fasone Holder, corporate vice president for human resources, diversity & inclusion and public affairs at the Dow Chemical Company Business Coalition for Benefits Tax Equity November 3, 2009
    8. More than 60 businesses support... Aetna, Hartford, CT Diageo North America, Norwalk, CT MillerCoors Brewing Co., Chicago, IL A.H. Wilder Foundation, St. Paul, MN The Dow Chemical Co., Midland, MI Moody's Corp., New York, NY Alcoa Inc., Pittsburgh, PA Eastman Kodak Co., Rochester, NY Morgan Stanley, New York, NY AMR Corp. (American Airlines), Ft. Worth, TX ERISA Industry Committee, Washington, DC Motorola, Schaumburg, IL American Benefits Council, Washington, DC Ernst & Young, New York, NY Nationwide, Columbus, OH Ameriprise Financial Inc., Minneapolis, MN Exelon Corp., Chicago, IL Nike Inc., Beaverton, OR Bausch & Lomb Inc., Rochester, NY General Mills Inc., Minneapolis, MN PG&E Corp., San Francisco, CA Best Buy Co. Inc., Richfield, MN GlaxoSmithKline plc, Philadelphia, PA PricewaterhouseCoopers, New York, NY Bingham McCutchen LLP, Boston, MA Herman Miller Inc., Zeeland, MI Project for Pride in Living, Minneapolis, MN BlueCross BlueShield of MN, Eagan, MN Hewlett-Packard Co., Palo Alto, CA Prudential Financial, Newark, NJ Boehringer Ingelheim USA Corp, Ridgefield, CT HSBC North America, Prospect Heights, IL Quorum Review Inc., Seattle, WA Capital One Financial Corp., Falls Church, VA IBM Corp., Armonk, NY Replacements Ltd., Greensboro, NC Carlson Companies, Minneapolis, MN ICMA Retirement Corp., Washington, DC Russell Investment Group, Tacoma, WA Charles Schwab & Co Inc., San Francisco, CA Intel Corp., Santa Clara, CA Sempra Energy, San Diego, CA The Chubb Corp., Warren, NJ J.P. Morgan Chase & Co., New York, NY Society for Human Resource Management (SHRM), Citigroup Inc., New York, NY KPMG LLP, New York, NY Alexandria, VA CNA Insurance, Chicago, IL Levi Strauss & Co., San Francisco, CA State Street Corp., Boston, MA College & University Professional Association Marriott International Inc., Bethesda, MD Texas Instruments, Dallas, TX for Human Resources, Knoxville, TN Massachusetts Mutual Life Insurance Co., Springfield, Thomson Reuters, New York, NY Corning Inc., Corning, NY MA TIAA-CREF, New York, NY Cullen Weston Pines & Bach LLP, Madison, WI Medtronic Inc., Minneapolis, MN Time Warner Inc., New York, NY Day One, South Portland, ME Merck & Co. Inc., New York, NY Verizon Communications Inc., New York, NY Deloitte LLP, New York, NY MetLife Inc., New York, NY World at Work, Washington, DC Delta Air Lines Inc., Atlanta, GA Microsoft Corp., Redmond, WA Xerox Corp., Rochester, NY Business Coalition for Benefits Tax Equity November 3, 2009
    9. Business Coalition for Benefits Tax Equity • www.hrc.org/bcbte for latest information • Contact Jamey Delaplane of Davis & Harman LLP (202) 662-2294 to join • E-mail workplace@hrc.org for a copy of these slides Business Coalition for Benefits Tax Equity November 3, 2009
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