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December 11, 2024
Question

Health Imputed Income - Massachusetts

  • December 11, 2024
  • 1 reply
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What is the tax rate for Health Imputed Income in Massachusetts and should taxes be taken on Federal, State, Medicare, SS, PFMLA & PFMA?

    1 reply

    Employee
    December 12, 2024

    Imputed income for domestic partner health insurance is taxed just as it if was wages.   Essentially the employer is giving you a raise, then taking the money to pay for the benefit after taxes.  So the imputed income is subject to federal and state income tax, social security and medicare tax, and any other taxes that apply to wages (like unemployment, workers comp, or other state requirements.). The Massachusetts income tax rate is 5% after deductions.