21 January 2016 Double check your state Forms W-2 for same-gender spousal benefits Don't forget that a US Supreme Court ruling in 2015 changed the marriage laws in numerous states and consequently, same-gender spousal benefits are retroactively excluded from taxable wages in a number of states. States can impose penalties for improperly reporting taxable wages on the Form W-2. You can minimize your risk by taking a close review of how your payroll system has been taxing health and other benefits provided on the Form W-2. Keep in mind that there are several states that do not tax benefits provided to a domestic, civil union, or registered domestic partner. For the state income tax and unemployment insurance rules for these benefits, please write to debera.salam@ey.com. Read more about the states impacted by the 2015 US Supreme Court ruling here.
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