Employer-Provided Adoption Benefits

Adoption is always a major financial undertaking and parents who really want children can't always afford it. That is why nearly 40% of corporations nationwide offer adoption benefits to their employees. Some provide limited assistance while others will meet up to three-quarters of the entire financial obligation of adoption. Many companies also offer parental-leave policies for parents who choose to adopt. Will your company benefits pay for your adoption?

Lump Sum Adoption Payments

Some employers provide lump sum contributions toward an employee's adoption. This could range anywhere from under $1,000 to more than $20,000, depending on the status of the employee and the total cost of adoption. This generally is given directly to the employee rather than to an adoption agency or attorney, though your employer will need to see paperwork verifying your adoption.

Adoption-Related Fees

Another type of employer-provided adoption benefits is the reimbursement for adoption-related fees. This could include the amount of money that you actually pay the adoption agency or attorney, or it can be related to the costs of bringing home and preparing for a child. It is important that you understand up front exactly which fees your employer will cover and how long it will take for the funds to be processed and delivered.

Percentage Reimbursement Plans

The majority of employer-provided adoption benefits include a percentage reimbursement plan, which means that the employer will reimburse a certain percentage (e.g. 70%) of your adoption expenses up to a certain point. As of 2005, the average ceiling for reimbursement plans was $4,000, though some employers could be much higher or lower.

Special-Needs Adoption

In some cases, employer-provided adoption benefits will increase in size when the employee adopts a child with special needs. Because the financial aspects of caring for a special-needs child are more cumbersome than caring for a "normal" child, employers will supply additional assistance. This may be based on the severity of your child's special needs or it might be a fixed-sum policy.

Full Time vs. Part Time

It is rare for part-time employees to be eligible for employer-provided adoption benefits. Employers will generally only pay for the adoptions of full-time employees, and sometimes only those who have been employed for a significant amount of time or who have earned certain levels on employee evaluations. Make sure to check with your human resources department to find out what the specifications are.