HRC Blog

Ernst & Young is First Among Big Four to Gross Up

Ernst & Young LLP announced Monday that they will be the first among the Big Four accounting firms to gross up wages for employees enrolled in domestic partner benefits. Ernst & Young begins the New Year equalizing both federal and state taxes for employees covering a domestic partner under the firm’s benefits plan.
Employees enrolled in domestic partner benefits incur additional taxes as the value of those benefits is treated as taxable income under federal law, while the value of opposite-sex spousal benefits is not. By grossing up wages, Ernst & Young effectively eliminates this financial burden and inequality for same-sex couples.
Ernst & Young joins a select but growing list of employers taking this remarkable step to create a wholly fair and equitable workplace. As federal law continues to treat domestic partner benefits differently from federally-recognized spousal benefits, Ernst & Young has stepped in where legislation has fallen short, and has filled numerous voids to insure equality for all of their employees. Adopting a grossing up benefit adds to E&Y’s already impressive record of commitment to LGBT employees, as the firm is a member of both HRC’s Business Coalition for Benefits Tax Equity and the Business Coalition for Workplace Fairness, and marks 2012 as the 7th year of earning a 100% on the HRC Foundation’s Corporate Equality Index.
Year after year, Ernst & Young demonstrates its leadership in LGBT diversity and inclusion, proving that workplace equality is not only good for company culture, but also good for business.  
We congratulate and thank Ernst & Young for making this positive change to ring in the New Year!

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