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
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future
For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]
Author: George McGowan
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.