Establishing Domestic Partnership - Wyoming

[Witko]

What is the name of your state (only U.S. law)? Wyoming

I've been running in circles trying to find a straight answer to my situation without having to seek an attorney which I can not afford at this time.

My Situation:

I have been in a relationship with my fiance for over 3-Years now.

We have a daughter who is nearing 2-Years of age.

My fiance does not work and I claimed her as a dependent on my 2008 Tax Filing. (In accordance with law as best as I had defined by research and financial advisers / accountants.)

I began a new job ~ 6 Months ago. My employer offers family health coverage. I enrolled for coverage for my Self/Fiance/Daughter.

Last two pay periods I found a taxable fringe figure added into my gross pay and then removed. After contacting Human Resources it was explained to me that it is required that they report the medical benefits for my fiance as income with my salary/wages as a "taxable fringe" so that Uncle Sam can Tax me on it. I inquired with HR as to a means by which this can be changed and was informed that my fiance and I would have to get a publicly notarized Domestic Partnership Affidavit as well as a Declaration of Tax Status reporting that my fiance as my Domestic Partner as well as a dependent. (I have been provided those forms from HR). She goes on to say that I ought to seek legal/financial council to make sure I am within legal boundaries... though I can not afford that at this time. So I took it upon myself to do some research.

After researching that aspect I spoke with HR again as I could not find anything that led to the belief that if I filed these forms I would be violating law. She then said I should speak with the local/state courts to inquire about establishing an Affadavit of Domestic Partnership with Public Notary and if I was within rights and not violating any state/local laws with them as well. Court had no clue and asked me to inquire with an Attorney.

Wyoming Statutes have no considerations regarding Domestic Partnership and only have Statues covering Marriage.

(Whew... that was a novel... )

My question, does anyone know if I have the bank notarize a Domestic Partnership Affidavit it would violate any local/state laws of Wyoming?

HR keeps pointing me every which way and I really can't afford an attorney when this doesn't seem as complicated an issue as it is and all information I researched points to the idea that I am well within rights/law to declare Domestic Partnership and have the fringe benefits for my fiance removed from reported gross income on my wages.

The key factor in me wanting to make this change is that if I do not have this rectified, the reported income from the taxable fringe on the medical benefits for my fiance will offset my gross income by nearly $10,000... of which I do not receive/see directly as salary/wages.

Any information or feedback is appreciated in this matter.

Thank You,

BAS

[TheGeekess]

So, what's the hold up with getting a marriage certificate and getting a quicky ceremony at the courthouse? You've already have the baby.

[Witko]

Good Question. LOL.

Though I don't wish to get in a marriage debate... and though that is one resolution to the issue at hand... my fiance and I are decidedly not quite ready to make that final step.

It is just a personal thing I suppose, and though I have nothing against marriage for the most part, we'd like to enter marriage for the right reasons, not rush into it for "pre-tax" fringe benefits from my employer.

"And the reason for divorce???"

"His employee benefits just weren't doing it for me anymore..."

Thanks for the response. I had a feeling that would be coming out shortly.

BAS

[thedoctorisin]

I'm a bit confused by your post. I would have expected that you need to fill out the Domestic Partnership Affidavit in order to even qualify for your employer's health benefit for your fiancee, and that you need to fill out the Declaration of Tax Status to allow your employer not to impute income for this benefit.

In any event, if the statements that you affirming are really true, then you should have no problem in signing the affidavit and declaration. Keep in mind that they could be used against you later in a "palimony" suit, should you and your fiancee split up.

[cbg]

Even in my state, where same sex marriages are legal and therefore for state tax purposes a domestic partner can have there premium withheld pretax, for Federal tax purposes we still have to show an "imputed income" which is the amount of income the employee is taxed on for the domestic partner's premium. Employees are required to sign an affidavit of domestic partnership to add a domestic partner to the insurance. I'm not sure I understand why you think such an affidavit would violate any laws.

[Witko]

Yes, I do understand the case of "palimony" suit as it is a binding affidavit, though I have heard that it is much easier to end or annul a "Domestic Partnership" than a marriage. Supposedly it requires written notification and notification to all debt, billing agencies of the annulment and separation in financial responsibilities between the two parties.

I am not certain why this came up now, 6 months after my hire and relatively 4 months after my benefits were issued. When I enrolled upon starting with the company, they required "evidence" of our Domestic Partnership, bills or joint bank statements dating back over a year, which I was able to furnish. There was no recourse or issues with that establishment, no information regarding Tax Status Declaration or Affidavit of Domestic Partnership. We had an open enrollment via the internet for the 2009 year benefits, where everyone had to re-enroll company wide even if no changes were to be made. I made no changes to what I enrolled, but perhaps the "Domestic Partnership" was not affirmed this time around through that enrollment period.

I was never informed of any requirements for the tax favored health benefits or what was required for my fiance to receive "pre-tax" benefits with the company. Human Resources didn't say a word, and no imputed income was reported till a month ago.

I can not find anywhere that I am in violation of any law for having an Affidavit of Domestic Partnership Notarized and know with good certainty that I am with Federal law to claim my fiance as a Dependent (For Tax Status Declaration).

I do not believe I should need to seek an attorney to go over these details much further when all information I have gathered points that I would be doing so within legal boundaries.

In the off-chance event that we ever do split up, I will handle the annulment of domestic partnership to the best of my ability and within legal consequences, and would certainly drop her from my health coverage to ensure I am reporting accurately to my employer as well as the federal government concerning my relationship status. I doubt it would come to that as we do intend to marry, just not at this time.

Your responses have been most informative thedoctorsorin and I appreciate/value your input and feedback.

I think I shall just fill out/notarize the forms and return them as everything seems straightforward enough as far as I could educate myself on the matter.

Best Regards,

BAS

[Witko]

Originally Posted by cbg

Even in my state, where same sex marriages are legal and therefore for state tax purposes a domestic partner can have there premium withheld pretax, for Federal tax purposes we still have to show an "imputed income" which is the amount of income the employee is taxed on for the domestic partner's premium. Employees are required to sign an affidavit of domestic partnership to add a domestic partner to the insurance. I'm not sure I understand why you think such an affidavit would violate any laws.

I am just gathering information. I blame Human Resources for my hesitation in pursuing the matter directly, immediately, through the forms that were provided as our HR representative started to push me every which way to seek "professional council" in taking these actions. First to seek an accountant... then consult with the local courts... then with a lawyer. What seemed to be a fairly simple matter started to be posed as a very complex legal matter that I ought to have sought council for.

So, I am just crossing my t's and dotting my i's as best as I can, educating myself before I do this.

I hope that helps explain and certainly it does help in many situations not to just dive in headfirst... the pool may be 3' deep.

Thank you again.

BAS

[cbg]

I think you still do not understand. Under Federal law, there are NO circumstances under which your fiance, domestic partner or no, can have his benefits deducted pre-tax. There is no problem with signing a domestic partner affidavit but it will NOT permit your HR or your payroll department to deduct his benefits pre-tax. Federal law does not recognize domestic partners. They are not eligible for pre-tax benefits. At all.

It doesn't make any difference if you are claiming him as a dependent. It's a different section of law. Either you did not understand, your HR explained it poorly, or your HR does not understand the law. Domestic partner affidavit or no domestic partner affidavit, your employer cannot legally deduct his share of the benefits pre-tax as long as you are not legally married.

[Witko]

I understand this.

HR is requesting the Domestic Partner Affidavit now.

The more important portion though is the Declaration of Tax Status.

Where as HR is most likely more confused than I am now, I believe that is where the change will be made and what accounts to the difference in the "pre-tax" vs "post-tax" benefit.

My fiance, my "Domestic Partner" via the Declaration of Tax Status, will be treated as "qualifying relative" "Dependent" so long as she meets the requirements under federal law, as outlined in IRS Publication 17, which I have read, found her within legal claim, and filed as Dependent for 2008.

So, as you pointed out, although Federal Govt. does not recognize "Domestic Partner" for tax-favored health coverage / "pre-tax" benefit, they certainly do recognize "Dependents" for it. Essentially that is the change that will be made from my understanding now.

I have no clue why HR is throwing in the messiness of the Domestic Partnership.

.....

Declaration of Tax Status (Summary on the Form) (Seems to outline the issue and status change to be made.)

Important: It can be complex to determine whether an individual satisfies the definition of tax dependent under the Internal Revenue Code. You may wish to consult a tax profesional for advice on your personal situation before you declare that your domestic partner or same-sex spouse and/or his her children is/are your tax dependent(s) as defined in Section 152 of the Internal Revenue Code or is eligible for tax-favored health coverage. A domestic partner, a child of a domestic partner, or a same-sex spouse is eligible for tax-favored health coverage only if all of the following are met:

1. He or she lives with you for the full tax year, except for temporary reasons such as vacation, military service, or education.
2. He or she is a citizen or legal resident of the United States.
3. He or she is not anyone else's Section 152 qualifying child dependent
4. He or she recieves more than half of his or her support from you.

In addition, if you can claim a federal tax exemption for your domestic partner or same-sex spouse and/or his or her children, then the domestic partner or same-sex spouse and/or children is eligible for tax-favored health care.

The rules for determining support are complicated and more involved than just determining who the "primary breadwinner" is. Refer to IRS Publication 17.

......

Reading that, IRS Publication 17, and various other tax forms indicates that Federal Law permits you to claim a Domestic Partner as dependent if it falls within the appropriate criteria.

As a result then, under Dependent Status, a Domestic Partner "MAY" (key word) qualify for tax-favored health coverage. In my case, the "pre-tax" medical benefits from my employer.

It took me a while to get everything straight in my head, and find the information that outlined the legalities, but I believe that is the essential case here.

Besides me filling that out the Declaration of Tax Status... Human Resources is also requesting the Domestic Partner Affidavit now... which wasn't the case before. I am not sure why they are requesting both... but I've been urged to seek legal council on the matter from them now when the situation does not appear to be as complex as they are making it out to be, and the more crucial matter than the Domestic Partnership is really the legalities surrounding a Domestic Partner qualifying as a Dependent.

That is the best as I can understand it at this point. And I can not find any law against Domestic Partnership Affidavit in the State of Wyoming.

I'll keep you posted on how it turns out.

Thank You,

BAS

[cbg]

I am still completely at a loss to understand why you would even THINK that there was a law against the Domestic Partner Affidavit in the first place.

[Witko]

Originally Posted by cbg

I am still completely at a loss to understand why you would even THINK that there was a law against the Domestic Partner Affidavit in the first place.

I hear ya CBG and I am not really arguing with you here. This is what HR has me inquiring about and wants me to "Seek Council" over... they have been driving the question at me more than I was believing it was a relative issue. I see no law against it... but it was just posed that I seek council to ensure I am handling the matter appropriately for "State/Local Law" and that I was aware of the ramifications.

There are some states that I am aware of that have "Domestic Partner Registration" systems which must be held on public level within public record for "legitimacy".

I have not lived in Wyoming my entire life, and to the best of my research and knowledge, there are no laws, or consideration of laws around the area of Domestic Partnership in general. Only laws/statutes concerning marriage.

The question regarding legality of Domestic Partnership was not necessarily just "is there a law against an Affidavit of Domestic Partnership", but rather am I going about establishing that Affidavit appropriately in accordance with law for the state, by having it witnessed/notarized at a public office. I apologize if my original stated question was not clearly defined. Perhaps I should have phrased it more appropriately.

Again, this is all new territory for me, so I've just been investing as much as I can to the research of it all and I appreciate your insight.

Best Regards,

BAS

[jbdhayes]

First off, You should have spoken to someone in payroll about the "taxable fringe". I worked in payroll and "taxable fringe" means that you were awarded a "prize" from work such as gift cards, contest winnings, or merchadise. You would have had to sign a form acknowledging the prize and the amount it is worth. HR does not know what that is they just take a guess! I know because that same answer was given to someone else when in reality they won a contest at work. We put in the amount and then deduct it so you will be taxed for it which is better for your tax returns. If it was for insurance it would only be on your paystub once not twice! Talk to payroll!