Page 25 - Vidant Health 2021 Benefit Guide
P. 25
Vidant Health Benefits Guide
Continuing Coverage
After Termination
Under certain circumstances, after you terminate
employment or no longer meet beneit-eligibility
requirements, you and your dependents may continue
to participate in some Vidant beneit plans through
COBRA continuation coverage. If you have a COBRA-
qualifying event, you’ll receive information regarding
your speciic coverage rights.
Imputed Income for
Domestic Partner
Coverage
If you enroll a domestic partner or your partner’s
child(ren) under your medical, dental or vision plan,
and that individual does not meet the IRS deinition
of a qualiied tax dependent, the IRS considers the fair
market value of the additional coverage as “imputed
income.”
Unlike health coverage for other family members, the
value of the additional coverage is a taxable beneit.
This means that the imputed income increases your
taxable gross income for purposes of federal income
and FICA taxes (Social Security and Medicare). Federal
and FICA taxes on imputed income are withheld from
each paycheck. Imputed income is separate from, and in
addition to, your other beneit deductions.
The amount of your imputed income depends on:
The plan option(s) in which you are enrolled.
The level of coverage you elect.
Imputed income is reported on your annual W-2 form.
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Continuing Coverage
After Termination
Under certain circumstances, after you terminate
employment or no longer meet beneit-eligibility
requirements, you and your dependents may continue
to participate in some Vidant beneit plans through
COBRA continuation coverage. If you have a COBRA-
qualifying event, you’ll receive information regarding
your speciic coverage rights.
Imputed Income for
Domestic Partner
Coverage
If you enroll a domestic partner or your partner’s
child(ren) under your medical, dental or vision plan,
and that individual does not meet the IRS deinition
of a qualiied tax dependent, the IRS considers the fair
market value of the additional coverage as “imputed
income.”
Unlike health coverage for other family members, the
value of the additional coverage is a taxable beneit.
This means that the imputed income increases your
taxable gross income for purposes of federal income
and FICA taxes (Social Security and Medicare). Federal
and FICA taxes on imputed income are withheld from
each paycheck. Imputed income is separate from, and in
addition to, your other beneit deductions.
The amount of your imputed income depends on:
The plan option(s) in which you are enrolled.
The level of coverage you elect.
Imputed income is reported on your annual W-2 form.
25
