Amex Joins 'Gross Up' Party

Two days after news broke that Morgan Stanley was subsidizing the tax penalties gay employees pay for domestic partner benefits, American Express announced they were following suit.

If a gay employee receives domestic partner health benefits they are counted as taxable income if the partner is not a dependent — gay employees can not use pre-tax dollars to pay for their health premiums while opposite-sex married couples can. And because of the Defense of Marriage Act, even if gay couples marry, their nuptials are not recognized by the federal government. Referred to as a "gross up," companies reimburse gay employees for the tax burden they incur as part of this government inequality.

Aside from Morgan Stanley and American Express — both of which will starting offering gross ups in January — Bank of America recently started the practice. Read more here.