Bank of America will soon reimburse gay employees who insure same-sex partners for the extra federal taxes they pay on health coverage.
The program was announced as part of the company’s open enrollment for health, medical and dental insurance this month, and will go into effect next year, said company spokeswoman Ferris Morrison.
For heterosexual married couples, employer-paid health benefits for spouses are nontaxable, and employees can use pre-tax dollars to pay premiums. But for gay couples, the benefits are taxable and premiums must be paid with after-tax money.
The Bank of America program will make up that tax difference.