Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Employers, Employees Still Confused Over DOMA Rules
Author: Scarinci Hollenbeck, LLC
Date: September 2, 2013
Key Contacts
Back
Nearly two months after the U.S. Supreme Court’s ruling that the Defense of Marriage Act is unconstitutional, employers and employees alike are still confused about how the court’s decree will affect them.
Employee Benefit News recently reported that many employers are unsure about whether they need to change their policies for same-sex couples immediately, and which policies need to be altered. Employees have some confusion as well about whether the Internal Revenue Service will consider where same-sex couples live when making benefit determinations or where they were married. This question could have large implications on health insurance costs.
For instance, Kaiser Health News recently noted that some employers offered health insurance to same-sex couples prior to the DOMA strike down. In these cases, employees who utilized this health insurance benefit were required to pay federal income tax on the value of that coverage, which is considered imputed income. Following the court’s ruling, same-sex couples who live in states that allow marriage will no longer be required to pay this income. However, the issue gets more complex for couples who live outside these states.
“If the IRS decides to follow its standard practice and recognize marriages based on where a couple lives, these couples could still be responsible for paying income tax on the value of a spouse’s health insurance,” the analysis read. “But if the IRS goes with the place of celebration standard, couples living in states that don’t recognize their marriages could avoid paying federal income tax on the spouse’s health insurance.”
Non-health related financial issues are also up in the air, with employers confused about whether they must provide benefits to same-sex workers retroactively. Couples are also on the fence about whether they can legally seek out refunds from prior returns if it falls within the three-year statute of limitations for amending returns. As these tax law issues remain unresolved, employers are being urged to seek legal advice and proceed with caution.
- Practices: Tax and Trusts & Estates, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.