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.
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Putting the bailout money to good use it seems.
Well, I guess that’s one way to explain the $5 debit card bullshit fee.
THAT WAS SOME FUCKED UP SHIT TO BEGIN WITH…..NOW THEY WANNA COVER THEIR ASSES….SMH
I’d call this a nice *start*!!! :-{P}
this is my bank too!
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.
just about the ONLY decent thing those crooks have ever done.
At least they are doing something right!
Quit B of A years ago for USAA and haven’t looked back. I remember all those random fees.
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.
BFD – they are still criminals.
hope my sister or anyone in my family isnt using this bank
about fucking time … they are as bad as commonwealth bank though
You go girl. WOOHOO money back. Now that works. LOVE IT<3 $$$
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?
Too little, too late.
Sounds like BOA is looking for friends…
BOA=BANK OF ABUBBLE
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.
BoA still sucks and is horrible for this country.
@Matthew, it is income. However, BofA was breaking the law by taking the premiums post tax. Premiums should always be taken pre-tax.