JULY 2015 NEWSLETTER

HOW CHILD SUPPORT IS CALCULATED IN PENNSYLVANIA

The core concept of child support is simple and well-known. Even people without children know the basics. Child support is a monthly payment that one parent makes to the other to help cover the various costs of raising a child. Typically, that payment is made to the custodial parent- the parent who spends the most time caring for the child. Accordingly, it is typically the non-custodial parent who makes the payment. This is because the law assumes that the custodial parent is already spending money directly on the child. When the parents have equal amounts of custodial time, the payments will be made by the parent with the higher income to the parent with the lower income.

Although the core concept of child support is simple, it can become more complex when the time comes to actually calculate the amount of child support that is due. This article will examine and explain the methodology used to calculate child support in Pennsylvania.

In Pennsylvania, a party’s basic child support obligation is determined pursuant to the Pennsylvania Support Guidelines. The two key considerations that the support guidelines take into account are:

1) the parties’ combined monthly net income; and,

2) the number of children who will be covered by the child support order.

Step One: Determining Combined Monthly Net Income

To determine each parent’s monthly net income, you start by determining each individual parent’s gross income. Gross income includes wages, bonuses, pensions, royalties, commissions, income made through interest, Social Security benefits, and any other sources of income. From the parent’s total gross income, you then make deductions for taxes, union dues, and alimony paid from one party to the other. The remaining amount is each parent’s monthly net income. Simply add the two amounts together to arrive at the parents’ combined monthly net income.

Step Two: Applying the Pennsylvania Support Guidelines

Once you have calculated the combined monthly net income, you can determine the monthly basic child support obligation by turning to the Pennsylvania Support Guidelines. The support guidelines determine the monthly basic child support obligation by comparing the parents’ combined monthly net income to the number of children who will be covered by the support order. The more children who will be covered, the higher the obligation. For example, parents with a combined monthly income of $2,000 and one child would have a basic support obligation of $486. However, if they had five children, the basic support obligation would be $1,009.

Step Three: Determining Each Parent’s Share of the Obligation

The basic support obligation does not fall entirely on one parent, however. It is the combined obligation of the two parents. The individual support obligation of the non-custodial parent is calculated by determining what his or her share is of the combined monthly income. For example, if the parents’ 4 combined monthly income is $2,000, and the non-custodial parent’s income is $1,500, then he or she makes 75% of the combined income. Accordingly, he or she would be obligated to pay 75% of the basic support obligation. If you reverse the roles and the parent with a net income of $500 is the non-custodial parent, he would only obligated to pay 25% of the basic support obligation. Pennsylvania uses this model to ensure that a child receives the same amount of financial support from his parents that he would have if his parents had stayed together.

Step Four: Adjustments for Additional Expenses

Finally, adjustments may be made due to certain additional expenses of childcare. The types of expenses which may adjust a child support payment are not routine or minor, such as expenses for school supplies and clothing. These types of routine expenses are already presumed a part of the support obligation. However, larger expenses such as childcare can be considered. If a custodial parent has to pay for childcare while he or she goes to work, and the custodial parent does not, the non-custodial parent’s obligation can be increased. An example of how that increase would be calculated is provided below.

Other types of major childcare expenses for which adjustments can be made to the basic support obligation include paying tuition for private school, sending the child to summer camp, paying health insurance premiums, and paying for unreimbursed medical expenses.

Going Through the Steps

Following is a hypothetical example of two divorcing Pennsylvania parents going through the process of calculating their respective child support obligations. We will call them Tom and Jane. Tom and Jane have one child, and Jane is the custodial parent. In this example we will use round numbers for the sake of simplicity, and apply the current Pennsylvania Support Guidelines. The guidelines are adjusted periodically, so it is always necessary to refer directly to an updated copy.

Step One: Determining Combined Net Monthly Income

Tom’s monthly income includes $5,000 in wages and an additional $2,500 in commissions. Therefore, his gross income is (5,000 + 2,500 =) $7,500. However, Tom also pays $1,500 in taxes. Therefore his net income is (7,500 – 1,500 =) $6,000

Jane’s monthly income includes $3,000 in wages, with no other sources of income. Therefore, her gross income is $3,000. However, Jane pays $1,000 in taxes. Therefore her net income is (3,000 – 1,000 =) $2,000.

Tom and Jane’s combined net monthly income is calculated by adding Tom’s net income ($6,000) to Jane’s net income ($2,000), resulting in (6,000 + 2,000 =) $8,000

Step Two: Applying the Pennsylvania Support Guidelines

Tom and Jane now look to the Pennsylvania Support Guidelines. They find their combined net income of $8,000, and then compare that to the number of children the support order will cover. Tom and Jane only have one child. The basic support obligation set forth on the Pennsylvania Support Guideline chart for parents with a combined net income of $8,000 and one child is 5 $1,244.

Step Three: Determining Each Parent’s Share of the Obligation

Tom and Jane now need to determine what share of the basic support obligation they are individually responsible for. This is calculated by determining what share of the combined net monthly income each provides. The combined net monthly income of Tom and Jane is $8,000. Tom’s individual net monthly income is $6,000. Accordingly, he provides a (6,000 / 8,000 =) .75, or 75% share of the combined net monthly income, and Jane provides a 25% share.

Accordingly, 75% is the share of the basic support obligation that Tom, as non-custodial parent, must pay to Jane, as custodial parent. Tom will owe (1,244 x 75% =) $933 a month in child support.

Step Four: Adjustments for Additional Expenses

Jane pays $600 a month for childcare while she is at work. Accordingly, Tom’s child support obligation can be increased by his share of their combined net income and basic support obligation. Tom’s share is 75%, and accordingly Tom’s obligation can be increased by (600 x 75% =) $450 a month, leaving him with a total monthly obligation of (933 + 450 =) $1,383 a month.

Pennsylvania provides a useful online tool in estimating child support obligations called the Child Support Estimator, located at:

https://www.humanservices.state.pa.us/csws/csws_controller.aspx?qG0lB7nXtMRiNTdGKgvKGMWco0 6Et06ffr_i8pczrh2O7sBIMMMf0Dd@SzhM31Z1uFKoSoYfDxbXtwwQQXgiFw– FoiCS7tDwn7jVf5W8LmSiX0mD5zNLCls9chOJBTYucsVx2lOCmSS.

Although not guaranteed, the Estimator can give you a basic idea of your obligation.

Calculating Child Support Beyond the Guidelines

The Pennsylvania Support Guidelines have limitations. For example, they do not calculate support obligations when the parties’ combined net income exceeds $30,000 per month. In that case, child support is calculated pursuant to Pennsylvania Rule of Civil Procedure 1910.16-3.1, which determines the parents’ basic support obligation by starting with a base number (ex. $2,801 for one child, $3,836 for two children) and adding a percentage of the amount of the net income above $30,000 (ex. 8.5% for one child, 11.6% for two children).

The Guidelines also only provide calculations for up to six children. When there are more than six children who are the subject of a single order, child support is calculated as follows: First, the amount of support which would be owed for six children is calculated (ex. $3,000). Second, the amount of support which would be owed for five children is calculated (ex. $2,500). Third, the amount for five children is subtracted from the amount for six children (ex. 3,000 – 2,500 = $500). Fourth, that number is multiplied by the number of children in excess of six (ex. Eight children, 500 x 2 = $1,000). Finally, that number is added to the amount of support which would be due for only six children (ex. $3,000 + 1,000 = 6 $4,000).

Conclusion

It is important to be as prepared as possible when entering into any new situation in life. This is especially true when considering your financial future and the care and support of your children. Although the Pennsylvania Support Guidelines are a useful tool for determining what your obligation will be, complicated and unique situations can require further advice and guidance.

An experienced Philadelphia family law attorney should be consulted for all questions or concerns about your current or future child support obligations. Please feel free to contact this office and meet with one of our experienced attorneys about any such questions or concerns.