Employers: A qualified adoption assistance program is a family-friendly benefit worth looking into. It can help your employees manage adoption costs by allowing qualifying employer-provided payments or reimbursements to be excluded from federal taxable income. You can fund the program yourself or, in some cases, through pretax employee salary reductions under a Section 125 cafeteria plan. To qualify for tax advantages, a program must have a written plan and comply with other IRS rules — including nondiscrimination, substantiation, payroll tax and reporting requirements. Contact us to discuss whether an adoption assistance program would make sense for your business.
