How adoption assistance benefits Work
The plan reimburses you-up to $5,000 per adoption-for necessary fees and expenses related to the legal adoption of an eligible child. The plan defines an eligible child as an individual who is either:
- A child under the age of 18; or
- Any disabled person who is unable to care for himself/herself due to a physical or mental disability.
You are eligible for adoption assistance benefits on your date of hire if you are a full-time employee regularly scheduled to work at least 40 hours each week, or you are a part-time employee regularly scheduled to work at least 20 hours each week.
Eligible expenses include:
- Court costs;
- Attorney fees;
- Adoption agency fees; and
- Charges for immigration services, including immunizations and translation fees.
Eligible expenses must meet all of the following requirements:
- They are directly related to your legal adoption of an eligible child.
- They are incurred after you become eligible for adoption assistance benefits.
- They are filed while you are employed by the Company.
The maximum plan reimbursement is $5,000 per adoption. The plan pays benefits for up to two adoptions per employee per lifetime. If you are attempting two adoptions at the same time, you must provide adequate documentation of both adoption attempts in order to qualify for benefits in excess of $5,000. If you are married to another Stryker employee and are seeking to adopt a child, the two of you are subject to the same dollar and lifetime maximum benefits as an individual employee.
All amounts paid by the Adoption Assistance Plan are subject to Social Security and Medicare taxes (FICA) as well as federal unemployment tax (FUTA). Federal and state income taxes are also withheld from adoption assistance benefit payments.
Under current tax law, and depending on your circumstances, adoption assistance benefits may qualify for federal income tax exclusion. You may also be able to claim an adoption tax credit on your federal income tax return for any adoption expenses you incur in excess of $5,000. You should consult a tax advisor to determine the ultimate taxation of the benefits paid to you under this plan.