Plan Overview

A Domestic Partner is an individual of either sex who shares a long-term committed relationship of indefinite duration with a benefit eligible employee.

Health insurance coverage is extended to employee's domestic partners. This allows benefited employees to elect coverage for health and dental insurance, and life insurance for domestic partners.

Every domestic partner benefits enrollee is required to complete a notarized Domestic Partnership Affidavit with the relevant supporting documentation.

View Domestic Partnership Affidavit

Criteria

In order to be considered a domestic partner all of the following criteria must be met:

  • The partners must currently reside together in an exclusive mutual commitment, which has existed for no less than one year (from start of benefit coverage), and for which there is mutual intent to continue the relationship indefinitely;
  • The partners share a permanent residence and are jointly responsible for basic living expenses;
  • The partners are not legally married to anyone else;
  • The partners are both 18 years or older;
  • The partners are not related by blood closer than allowed by marriage per A.R.S.;
  • The partners were mentally competent to consent to the contract when the domestic partnership began;
  • Each partner is the other's sole domestic partner and is responsible for the other's common welfare.

Documentation

Yes, the City of Scottsdale requires that domestic partners provide documentation as evidence of joint responsibility, commitment, and duration of the domestic partnership. At least three of the following items are required. All documentation must be current and predated by at least twelve months.

Documentation required to prove the domestic partner relationship applies

  • Joint mortgage, joint property tax identification, or joint tenancy on a residential lease;
  • Joint bank account (checking or savings);
  • Joint liabilities (credit cards, car loans, etc.);
  • Joint ownership of significant property (vehicle, real estate, boat, etc.);
  • Durable property or health care powers of attorney;
  • Naming each other as primary beneficiary in wills, life insurance policies, or retirement annuities;
  • Written agreements or contracts regarding the relationship showing mutual support obligation.

Imputed Income

When you enroll your domestic partner or your partner's child in one of the City of Scottsdale's sponsored medical plans, the IRS considers the City's contribution toward the additional coverage as your imputed income. Your imputed income is the City's contribution toward the additional coverage for your domestic partner and/or your partner's child.

The payroll deduction amount to cover your domestic partner and/or your partner's child is a post tax deduction - unlike medical coverage for other enrolled family members.

Example A:

If you enroll your domestic partner and his or her child, your imputed income would be the difference between the City's contribution for employee only coverage (for you) and family coverage. If you are a Cigna OAP plan member, your monthly-imputed income would be $1,121.00.

Example B:

If you enroll your domestic partner, your imputed income would be the difference between the City's contribution for employee and spouse coverage and employee only coverage. If you are an Cigna OAP In-Network member, your monthly imputed income would be $652.00.

Imputed income is separate from - and in addition to - your monthly plan cost. Imputed income applies even if you pay no monthly cost for your medical plan. The amount of your imputed income depends upon the plan in which you are enrolled and the level of your coverage.

Imputed income is taxable - that is, it increases your taxable gross income for federal and state income taxes as well as for FICA (Social Security and Medicare) and taxes are withheld from your paycheck. Your imputed income is reported on your annual Form W-2.

Imputed income does not affect calculations for City-sponsored life or dependent life insurance, and/or retirement or disability income.

Based on IRS requirements, imputed income applies only for coverage of an individual who is not your tax dependent. If your same-sex domestic partner (or your partner's child) qualifies as your tax dependent under Section 152 of the Internal Revenue Code, you should have no imputed income. To do this, the domestic partner and partner's children must: a) receive over 50% of his or her support from you for the year; and, b) have as his or her principal abode your home for the entire year, and be a member of your household.

Impact on Taxes

Worksheet to estimate your imputed income and its impact on taxes.
LineCalculationAmount
1 Your monthly-imputed income for medical coverage$__________
2 Total 2023 imputed income
Multiply line 1 by 12 (months of coverage in 2023).
$__________
3 Estimated federal income taxes on the imputed income
Multiply line 2 by your federal income tax rate (25% or other)
$__________
4 Estimated state income taxes on the imputed income
Multiply line 2 by your state income tax rate.
$__________
5 Estimated state income taxes on the imputed income
FICA taxes on the imputed income x .0765
$__________
6 Total estimated taxes you must pay on the imputed income
Add lines 3 (federal taxes), 4 (state taxes), and 5 (FICA)
$__________

Discalimer:

The foregoing examples are for illustration only and may not reflect your actual circumstances. The city of Scottsdale and its Human Resources Department are not providing you with tax advice nor are they attempting to evaluate your particular situation. You are urged to consult your own tax advisor(s) concerning the federal and state income tax and employment tax ramification from your enrolling your domestic partner or your partner's children in one of the city of Scottsdale's sponsored medical plans.

Produced by Human Resources:

This information represents a summary of benefits provided by the City of Scottsdale to benefited employees. Every effort has been made to report information accurately. All information, including the amount of any benefit and employee eligibility of benefits, is subject to and governed by the terms and conditions of the applicable policy or plan documents. In all cases where any of the information provided differs from the amount of benefit actually provided by the policy or plan, the terms of the legal documents will control.

You may be interested in:

Cigna - Find a Doctor
Cigna - Contact Customer Services
Benefit Forms
HIPAA Privacy Notice

Last Updated: Apr 15, 2024

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