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Family Forum / Parenting / Parenting / July 2004Question abt cs percentages
I was just curious..is child support taken from the NCP always decided by roughly the same percentage state to state? Im in Mass and here it is from 29 to 33 percent of income. If the parent pays child support for a previous child that is taken off the top of the income. I mean they subtract it so that it doesnt count. I was just wondering what the standards are in the states you guys are in? rowanyx19 wrote: >I was just curious..is child support taken from the NCP always decided by >roughly the same percentage state to state? >Im in Mass and here it is from 29 to 33 percent of income. If the parent pays >child support for a previous child that is taken off the top of the income. I >mean they subtract it so that it doesnt count. >I was just wondering what the standards are in the states you guys are in? Here in Illinois it is 20% for one, 25% for two, 30% for three, and I beleive it doesn't go over 40% off of NET not gross. Here any subsequent orders are figured after the original cs is subtratced from the NPCs income. Mrs Indyguy > rowanyx19 wrote: > [quoted text clipped - 8 lines] > it doesn't go over 40% off of NET not gross. Here any subsequent orders are > figured after the original cs is subtratced from the NPCs income. Assuming $90,000 combined income and 21% federal tax, 8% state tax, and 8% FICA/Medicare tax, those three taxes add up to 37% taxes on gross. For one child 20% of net is the same as 12.6% of gross and my state uses 11.9%. For two children 25% of net is the same as 15.8% of gross and my state uses 16.6%. For three children 30% of net is the same as 18.9% of gross and my state uses 19.4%. In my state the second and third child get a higher percentage than in IL. But these are just the percentages for the basic CS award. Add-ons for healthcare can double the basic award in my state. Also add-ons for life insurance and daycare can run the percentages up dramatically. And if imputed incomes are used to set the basic award, actual CS awards can take up to, and even exceed, 100% of actual income. And to comment further those percentages are just for the NCP. CP's receive tax exemptions, tax deductions, and tax credits that significantly reduce their taxes to a level much lower than 31% of gross. As an example, my ex paid less in federal and state income tax combined (5%) than she paid for FICA/Medicare (8%). These tax advantages increase a CP's net income which means the percentage of net income CP's pay is significantly less than what NCP's pay. >> Here in Illinois it is 20% for one, 25% for two, 30% for three, and I >beleive [quoted text clipped - 23 lines] >means the percentage of net income CP's pay is significantly less than what >NCP's pay. Ugh I forgot its 29-33% for 3 kids is what I meant to say. If you are ordered to maintain health they dont knock off some of your cs? For example..my ex..cs order is 100 a week. If he were to hold the health ins they would take off half of what he pays weekly to have it from his cs. So I think his is like 60 a week so they would knock his cs order down 30 dollars. Not that it matters in my case bc he doesnt have the ins for the kids and he already holds a family plan for another child so he pays that 60 a week anyway. It would actually prob benefit him to add them to his ins bc it would take the 30 off the support order and he wouldnt have an extra bill for ins seeing as he already pays it. > >> Here in Illinois it is 20% for one, 25% for two, 30% for three, and I > >beleive [quoted text clipped - 34 lines] > 30 off the support order and he wouldnt have an extra bill for ins seeing as he > already pays it. I'll answer your question, but it is more complicated than you have assumed. I'll use some numbers close to yours for the example. The $100 per week is essentially $450 per month for the basic CS award. Let's say that $450 is 65% of the total CS award and you are responsible for the other 35%. If the cost of insurance for an adult is $60 per month and another $40 per month to add a child to the coverage, the total cost of insurance is $100. The income shares model states take the $40 it costs to add the child and divide it between the parents. They say the CP should pay 35% of the $40, or $14. They deduct the $14 from the basic award making the adjusted basic award $436 per month. And then what the NCP pays is $436 plus $100 for a total of $536 per month. The flaw in these calculations is the NCP cannot get insurance limited to the child only. They are forced to cover themselves first before they are eligible to cover the child which means the cost of insurance is $60 more per month than may be actually needed and the NCP gets no credit for paying this amount. Then the state orders the NCP to pay a pro-rata share of the uninsured healthcare on top of what has already been paid. The additional amount varies by the type of insurance coverage. In a typical preferred provider plan there would be a $200 deductible for the child. It takes a minimum of $800 per year in healthcare expenses to break even on the insurance. $800 minus $200 equals $600, and 80% of $600 is $480 which is the cost of the insurance over a year. The NCP pays 65% of the $200 deductible ($130) plus 65% of the unreimbursed amount ($120 times 65% or $78) for a combined add-on of $208 per year. So bottom line, the NCP pays out $1200 for premiums plus $208 for uninsured healthcare, or $1408, and gets a credit of $168 ($14 times 12 months) for total out-of-pocket of $1240 per year, or just over $103 per month for healthcare. |
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