By: HUB’s EB Compliance Team

In August, California enacted Senate Bill 30 (SB30). Prior to this law, opposite-sex couples could register their domestic partnership with the California Secretary of state only if at least one individual in the partnership was at least age 62 and entitled to Social Security (SS) benefits. Same-sex couples could register their domestic partnership if both individuals were over 18, regardless of eligibility for SS benefits.

Under SB30, registration of domestic partnerships is now extended to opposite-sex couples age 18 or older, regardless of whether they receive SS benefits. This means the treatment of same-sex and opposite-sex domestic partners are now the same under California law.

This law takes effect January 1, 2020.

A Few Considerations

Individuals interested in registering their domestic partnership should be aware that the other elements required for registration are still in effect. Namely:

  • Neither individual in the partnership is currently in a legal marriage nor in a domestic partnership with anyone other than their registered partner;
  • Each individual in the partnership is not related by blood (in a manner by which the State of California would preclude this partnership);
  • Each individual in the partnership is at least 18 years of age (there is a potential exception for ‘Confidential Domestic Partnerships’); and,
  • Each individual in the partnership is capable of consenting to the domestic partnership.

Next Steps for Employers

  • Employers that only offer benefit coverage to registered domestic partners will want to ensure that their plan document, as well as any applicable carrier/vendor contracts, are revised to include coverage for opposite-sex couples over age 18 and regardless of eligibility for Social Security benefits.
  • Likewise, employers will want to ensure that their payroll vendor (and/or internal HRIS/payroll systems) is aligned to account for this expansion, since the value of health insurance coverage to registered domestic partners is tax-free in California.
  • Note that this law does not, in any way, change the posture of the Federal government towards domestic partnerships. The Federal government does not recognize domestic partnerships, registered or unregistered. As such, the value of health insurance coverage provided to a domestic partner and his/her children is taxable at the Federal level, unless the domestic partner and/or the children of the domestic partner are qualified tax dependents of the employee as defined under Internal Revenue Code Section 152.

More information can be found here.

If you have any questions, please contact your HUB Advisor. View more compliance articles in our Compliance Directory.

NOTICE OF DISCLAIMER

The information herein is intended to be educational only and is based on information that is generally available. HUB International makes no representation or warranty as to its accuracy and is not obligated to update the information should it change in the future. The information is not intended to be legal or tax advice. Consult your attorney and/or professional advisor as to your organization’s specific circumstances and legal, tax or other requirements.