Continuing Coverage After Termination
Under certain circumstances, after you terminate employment or no longer meet benefiteligibility requirements, you and your eligible dependents may continue to participate in some
The Liberty Company benefit plans through COBRA continuation coverage. If you have a COBRA qualifying event, you will receive information from Flores regarding your specific coverage rights
Imputed Income for Domestic Partner Coverage
If you enroll a domestic partner or your partner’s child(ren) under your medical, dental or vision plan, and that individual does not meet the IRS definition of a qualified tax dependent, the IRS considers the fair market value of the additional coverage as “imputed income.” Unlike health coverage for other family members, the value of the additional coverage is a taxable benefit. This means that the imputed income increases your taxable gross income for purposes of federal income and FICA taxes (Social Security and Medicare). Federal and FICA taxes on imputed income are withheld from each paycheck. Imputed income is separate from, and in addition to, your other benefit deductions.
The amount of your imputed income depends on:
- The plan option(s) in which you are enrolled.
- The level of coverage you elect.
Imputed income is reported on your annual W-2 form.