Do you think more companies should follow suit?
Working for Google has its benefits. Employees enjoy free food, free laundry, a doctor on duty at its headquarters and five months maternity leave with full pay and benefits.
Now, Google is attempting to eliminate the tax burden for its gay and lesbian workers.
Beginning today, Google will be covering a cost that gay and lesbian employees have been subjected to when their partners receive domestic partner health benefits. The extra tax is something that heterosexual married couples do not incur.
The increase will be retroactive, going back to the beginning of the year according to a NY Times report.
Google isn't the first to take this step, but they are the first in large Silicon Valley tech companies to take the leap. Some say the Google’s move could make competition do the same, since they all vie for the same talent.
Federal law states that employer-provided health care benefits for domestic partners are considered taxable income so long as the partner is not a dependent. The tax price is based on the value of the coverage.
On average, employees with domestic partners will pay about $1,069 more in taxes per year than a married employee with the same coverage.
The extra compensation to cover the domestic partner tax only applies to same-sex domestic partners since heterosexual couples can avoid the additional tax by marrying.
Here's what's being said about the Google tax compensation:
»AFP: Google strengthens benefits for gay or lesbian workers
»MSNBC: Google plans to pay gay employees more
»NBC Bay Area: Gay Googlers to get more
Do you think more companies should follow suit? Leave your comments below.