Family Status Change Definition

Also commonly referred to as a “qualifying life event,” family status change is a change in an employee’s benefits elections. The IRS defines what family events qualify and when these changes may result in a change in benefits or payroll tax amounts.

Family Status Change Extended Definition
Change in family status can apply to specific situations such as:

• Legal marital status change
• Addition or reduction in the number of dependents
• Employment status change (e.g., work hours or promotion)
• Dependent becoming eligible or ineligible
• Change in the participant’s residence

In these instances, the individual can, according to IRS guidelines, change their family status. And, employees may need to update their health insurance, life insurance, or other benefits information.

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How to Update Payroll for an Employee With a Family Status Change

Last Updated By

Rachel Blakely-Gray | Apr 14, 2023