How Do Adoption Benefits and Maternity Benefits Compare?
While most companies recognize the need for fairness to all employees, adoption benefits have not kept pace with maternity benefits. Since regulations require that pregnancy be treated as any other disability, reimbursements through medical plans have risen dramatically. This has not been the case for adoptions, since an adoptive parent is not “disabled” by parenthood. Yet, there are companies that try to parallel maternity benefits by steadily increasing the adoption reimbursement. At least one company–Time, Incorporated–bases its maximum adoption benefit on the latest 3-month average of pregnancy costs in the area. Are Benefits Taxable? Currently, adoption benefits in the form of cash assistance are federally taxable. However, there are ways for companies to provide employees with non-taxable benefits related to adoption. Medical and legal expenses may be covered under company-sponsored group plans, which are currently non-taxable.
