Example: Same-Sex Spouses and Domestic Partners (USA)

Administrator Guide

Global Modern Services (GMS) has employees in many states. Some of these tax authorities recognize both same-sex spouses and domestic partners, some recognize only 1 of the 2 types of relationships, and others recognize neither.

Sandy, a payroll administrator, wants to create pay components for the Medical - Aetna HMO benefit for same-sex spouses and domestic partners of GMS employees. Sandy must create these 4 pay components:

Benefit for	Deduction	Earning
Same-Sex Spouse	Employee contribution	Employer contribution
Domestic Partner	Employee contribution	Employer contribution

However, she must decide between these 2 types of configurations, whichever requires fewer exceptions:

Pretax deductions and nontaxable earnings with tax authority exceptions for the states that don’t recognize these relationships.

Post-tax deductions and taxable earnings with tax authority exceptions for states that do recognize these relationships.

Sandy researches which tax jurisdictions recognize which types of relationships. She decides to create post-tax and taxable pay components with exceptions for any tax authorities that differ.

Configure benefits for same-sex spouses and domestic partners.

Security: Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core Payroll functional area.

Example: Create Employee Deductions for Same-Sex Spouses (USA).

Example: Create Employee Deductions for Domestic Partners (USA).

Example: Create an Earning for Employer Contribution to Same-Sex Spouse Benefits (USA).

Example: Create an Earning for Employer Contribution for Domestic Partner Benefits (USA) .

Qualifying employees pay the associated taxes for medical benefits according to the tax authority guidelines.

Sandy updates the tax authority exceptions for the pay components when changes occur.

Manage Personal Relationship Types

Define Tax Authority Exceptions from Pay Component Groups (USA)