In a move that will hopefully nudge other companies into following suit, Google is planning to increase the pay of gay and lesbian employees to cover a tax on their benefits that straight employees are exempt from.
The tax, which stems from employer-provided health benefits for domestic partners being counted as taxable income, doesn’t apply to straight, married employees, who’s benefits aren’t taxable. Because of the tax, employees with domestic partners pay about $US1069 per year more than a married employee with identical coverage.
Google is simply bumping up affected employees pay to cover the tax, making their benefits fair and equal to all. Good on you, Google. Hopefully other Silicon Valley companies will follow suit. Or, optimally, the tax code will be changed so it’s no longer unfairly taxing gays and lesbians. [NY Times]