Non-federally qualified domestic partners and spouses and the Pre-tax Contribution Program

Effective January 1, 2010, NYSHIP enrollees who are eligible for the Pre-tax Contribution Program (PTCP) and who cover a domestic partner or spouse will be able to have their full premium contribution for the cost of family health insurance coverage deducted from their employee wages before taxes are withheld. If you cover a domestic partner who is not a federally qualified dependent, you are responsible for reporting the value of the coverage provided to the domestic partner on your income tax return. The Department of Civil Service sends you form 1099-MISC showing this amount after the end of each tax year.

The deduction change is retroactive to January 1, 2010 so that enrollees can receive the full tax benefit for 2010. This change will not have an effect on the total premium deducted; however the tax withholding amounts could change slightly. Imputed income will not be affected. Please consult your tax advisor for additional information or guidance.