Follow breaking news @lgbtqnation
Business

Bank of America to reimburse gay couples for additional taxes on healthcare plans

Thursday, October 13, 2011

Bank of America, the nation’s largest bank holding company, has announced plans to reimburse gay employees for the additional taxes they pay on same-sex couple healthcare plans.

Because the Defense of Marriage Act currently prohibits federal recognition of same-sex unions, healthcare benefits for same-sex partners are counted as taxable income if the partner is not considered a spouse or dependent.

The program was announced as part of the company’s open enrollment for health, medical and dental insurance this month, and will go into effect next year, said company spokeswoman Ferris Morrison.

For heterosexual married couples, employer-paid health benefits for spouses are nontaxable, and employees can use pre-tax dollars to pay premiums. But for gay couples, the benefits are taxable and premiums must be paid with after-tax money.

The Bank of America program will make up that tax difference.

“This change came as a result of our benefits plans to ensure they meet the diverse needs of our employees and supports our long-standing commitment to diversity and inclusion,” said Morrison.

Bank of America, based in Charlotte, N.C., said the option will only be offered to gay couples, since heterosexual domestic partners have the option to marry and avoid the extra taxes.

Archives: , , , , ,

Filed under: National Headlines

21 more reader comments:

  1. Putting the bailout money to good use it seems.

    Posted on Thursday, October 13, 2011 at 9:27pm
  2. Well, I guess that’s one way to explain the $5 debit card bullshit fee.

    Posted on Thursday, October 13, 2011 at 9:27pm
  3. THAT WAS SOME FUCKED UP SHIT TO BEGIN WITH…..NOW THEY WANNA COVER THEIR ASSES….SMH

    Posted on Thursday, October 13, 2011 at 9:29pm
  4. I’d call this a nice *start*!!! :-{P}

    Posted on Thursday, October 13, 2011 at 9:31pm
  5. this is my bank too!

    Posted on Thursday, October 13, 2011 at 9:34pm
  6. I hate this bank. They have unexplained fines. Their website only works half the time. They fine people for being who they are. They fine $5 a month just for having a debit card. Fuck it, im changing banks ASAP.

    Posted on Thursday, October 13, 2011 at 9:38pm
  7. just about the ONLY decent thing those crooks have ever done.

    Posted on Thursday, October 13, 2011 at 9:44pm
  8. At least they are doing something right!

    Posted on Thursday, October 13, 2011 at 9:46pm
  9. Quit B of A years ago for USAA and haven’t looked back. I remember all those random fees.

    Posted on Thursday, October 13, 2011 at 9:47pm
  10. Small business owners and individuals are becoming more and more frustrated trying to get health insurance, best way to find is shop around and check prices i would recommend “Penny Health” to anyone.

    Posted on Thursday, October 13, 2011 at 9:48pm
  11. BFD – they are still criminals.

    Posted on Thursday, October 13, 2011 at 9:57pm
  12. hope my sister or anyone in my family isnt using this bank

    Posted on Thursday, October 13, 2011 at 10:27pm
  13. about fucking time … they are as bad as commonwealth bank though

    Posted on Thursday, October 13, 2011 at 10:50pm
  14. You go girl. WOOHOO money back. Now that works. LOVE IT<3 $$$

    Posted on Thursday, October 13, 2011 at 11:00pm
  15. In California, B of A has the debit card franchise for Unemployment benefits. Is this the case elsewhere? They’ll make out BIG time w/ the high jobless rate, eh?

    Posted on Thursday, October 13, 2011 at 11:09pm
  16. Too little, too late.

    Posted on Thursday, October 13, 2011 at 11:10pm
  17. Sounds like BOA is looking for friends…

    Posted on Thursday, October 13, 2011 at 11:36pm
  18. BOA=BANK OF ABUBBLE

    Posted on Friday, October 14, 2011 at 5:31am
  19. Well, this explains a lot about BOA. Apparently no one in the executive suite knows two bits about tax law. Reimbursing their same-sex employees for taxes paid on dependent partner insurance is seen as income by the IRS, thereby requiring their same-sex employees to file amended returns and more than likely increasing their tax burden, opening them up to interest and penalties… What a bunch of idiots.

    Posted on Friday, October 14, 2011 at 6:16am
  20. BoA still sucks and is horrible for this country.

    Posted on Friday, October 14, 2011 at 6:22am
  21. @Matthew, it is income. However, BofA was breaking the law by taking the premiums post tax. Premiums should always be taken pre-tax.

    Posted on Friday, October 14, 2011 at 6:47am