Family Status Change Definition
Also commonly referred to as a “qualifying life event,” this is a change in the employee benefits elections under the Internal Revenue Service’s guidelines for a tax status change. The IRS defines what family events qualify and when these changes may result in a change in benefits or payroll tax amounts.
Change in family status can apply to specific situations such as: legal marital status change, addition or reduction in the number of dependents, the employment status change (e.g., work hours or promotion), dependent becoming eligible or ineligible, and a change in the participant’s residence. In these instances, the individual can, according to IRS guidelines, change their family status.
Family Status Change