Surrogate Compensation: Your Questions Answered

Published on Tuesday January 23rd, 2024 by WCS

Surrogacy offers women a beautiful opportunity to play a vital role in helping individuals and couples fulfill their dreams of expanding their families. While the desire to be part of creating a family is powerful and fulfilling in and of itself, surrogates also receive generous compensation, which is not only well-deserved but also helps them meet financial needs and obligations. In addition to regular payments, candidates are reimbursed for expenses and related services.

If you’re considering becoming a surrogate, learning more about surrogate compensation is essential for making informed decisions. In this blog post, we'll explore three questions we often hear from surrogate candidates, shedding light on the rewarding journey of surrogacy and the important topic of compensation.

What Is the Typical Surrogate Pay Range?

Surrogate compensation depends on a wide range of factors, including which surrogacy agency you work with. For example, West Coast Surrogacy is known for offering one of the highest compensation ranges in the country, with surrogates receiving between $72,000 and $104,000. This encompasses base compensation, paid monthly following confirmation of pregnancy with a heartbeat, typically around six weeks after the embryo transfer. In addition to base compensation, surrogates receive various fees and allowances, such as health insurance costs, distributed at different intervals.

How is Surrogate Compensation Determined and What Factors Are Taken Into Consideration?

Your final compensation as a surrogate can be influenced by various factors, including individual arrangements, the state where you reside, your employment status, and any previous experience as a surrogate. States with higher demand for surrogates, and a higher cost of living, such as California, may offer higher compensation packages. Throughout the surrogacy journey, intended parents typically cover all related expenses. Legal requirements vary depending on the state. To better understand how these factors can impact your compensation, here are some examples:

  • Employed, experienced surrogates living in California receive $92,000.
  • Employed, experienced non-California residents receive $87,000.
  • Employed, first-time, surrogates in California receive $72,000.
  • Employed, first-time, non-California residents receive $67,000.
  • Non-employed, experienced surrogates in California receive $85,000
  • Non-employed, experienced, non-California residents receive $80,000.
  • Non-employed, first-time, experienced, California residents receive $65,000.
  • Non-employed, first-time, experienced, non-California residents receive $60,000.

Do Surrogates Receive Additional Compensation for Specific Medical Procedures or Complications During Pregnancy?

Like any medical procedure, surrogacy involves potential risks, including those associated with specific processes, medications, and the pregnancy itself. Agencies understand the importance of addressing concerns and potential complications, often establishing certain milestones throughout the process to help safeguard your and your family’s well-being. If complications arise, such as miscarriages, and you have met the agreed-upon milestones, you are typically compensated up to that point.

Is Surrogate Compensation Taxable Income?

If you’ve received a 1099-MISC form for your compensation as a surrogate, you must report it to the Internal Revenue Service and claim it as income on that year’s taxes. You may receive this tax form from your surrogacy agency or escrow service. It’s important to note that even if you haven’t received this form, you should not assume you won’t have to pay taxes. This simply means that a policy has been established by the involved parties to the surrogacy contract that federal taxation forms will not be issued.

Know the Ins and Outs of Surrogacy Compensation

Understanding the compensation setup, including allowances, distribution, and taxation, is crucial when considering surrogacy. If you have any questions about compensation or any aspect of the surrogacy process, we invite you to contact us at West Coast Surrogacy to speak with one of our knowledgeable representatives.