Cost of Coverage

Before-Tax Costs

U.S. home-based expatriate employees or expatriates assigned to the U.S. pay for coverage with before-tax dollars, which means your U.S. federal, state, and local income taxes (if applicable) are reduced.

You and JPMorgan Chase share the cost of coverage.

During your designated enrollment period, your cost for each Plan will be available on the Benefits Web Center via me@jpmc.

Domestic Partner Costs

If you're covering a domestic partner as described in "Eligible Dependents" in the Health Care Participation section, there are tax implications of which you should be aware.

JPMorgan Chase is required to report the entire value of the dental coverage for a "Domestic Partner" as taxable (or "imputed") income to you and to withhold for federal, state and FICA taxes on the imputed income. The imputed income includes the amount that both you and JPMorgan Chase contribute toward the cost of coverage.

To offset the additional federal and state tax that is payable in order to cover a domestic partner, employees who cover same-sex domestic partners receive special "gross up" pay to compensate for the cost of the additional taxes. You will receive recurring payments, each of which represents an offset for federal (including FICA) and state taxes, if applicable, that you paid on benefits in the prior pay period. You can identify these payments on your pay statement under Earnings, "Benefit Tax Offset — GUDP."

Because these payments will be taxable payments, the payments include an additional amount to help adjust for the taxes that you will pay on the payments themselves. They are based on estimated federal (25%) and state tax rates and include a FICA adjustment for individuals whose prior-year wages do not exceed the FICA wage limit for the prior year.

Please Note: If you certify that your domestic partner and/or your domestic partner's children are your tax dependents, you will not be subject to taxation of imputed income on the tax dependent's coverage.

Enrolling a Domestic Partner

Additional information on enrolling and the tax consequences of covering a domestic partner can be found on My Health. Domestic Partner Coverage Guide available via the Expatriate Health Benefits Resources page.