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This topic contains information on the following subjects:
1. Obligation guideline policy;
2. The various factors that are considered when determining obligation amounts;
3. Verification of an obligor's past and present income;
4. Primary Custody;
6. Split Custody;
G.S. 50-13.4(c) requires the Conference of Chief District Judges to prescribe uniform statewide presumptive guidelines for determining child support obligations. Use this link to see the complete text of the NC Child Support Guidelines (AOC-A-162).
Adherence to these guidelines is mandatory unless a basis exists for deviating from the guidelines for cases where the application of the guidelines would be inequitable to one of the parties or to the child. The guidelines do not apply to stepparents or agencies that are secondarily liable for child support.
If a valid, unincorporated separation agreement already exists that determines the child support obligation and a child support action is subsequently brought against the parent, the court must base the parent’s support obligation on the amount of support provided under the separation agreement rather than the guidelines, unless the court determines that the amount under the separation agreement is unreasonable.
NOTE: Multiple web sites exist that allow users to calculate child support obligations using the guidelines. Because of the type of programming used, the calculations from these web sites and the ACTS system used by CSE can differ slightly from each other.
Local CSE must record all factors that are taken into consideration when determining the amount of support. This requirement is vital, because it explains the basis for the support amount at that time and is necessary for the evaluation of any changes in circumstances at any subsequent review or modification of the court order.
When seeking to establish a child support obligation through voluntary means or when making recommendations to the court regarding an equitable amount for support, the following factors should be considered:
1. The needs of the child(ren);
2. The relative ability of each parent to provide for the support of the child(ren); and
3. Whether both parents are absent from the home, since the local CSE agency must pursue each parent for child support in those situations.
Local CSE caseworkers need to calculate child support obligations for a variety of situations. Often, caseworkers calculate an obligation during an interview with an NCP or an alleged father who has just admitted paternity. Caseworkers can generate an Obligation Calculation Worksheet to be included with a Voluntary Support Agreement that they are mailing to an NCP. Also, caseworkers can generate an Obligation Calculation Worksheet in preparation for a court hearing to establish a child support order. For all of these situations, the method for calculating the obligation is the same.
Worksheets must be filed with any order for support to ensure proper application of the guidelines. Local CSE agencies can choose to attach an affidavit of income and expenses along with the appropriate worksheet to establish the needs of the children. This information can prove vital when seeking modification to an existing order. In addition, local CSE must document in the case record how the support amount was initially derived.
The Conference of Chief District Court Judges is charged with the responsibility to review the guidelines at least once every four (4) years to determine whether the application of these guidelines results in appropriate child support amounts. The Conference could modify the guidelines accordingly. The most recent revision became effective on January 1, 2011, and applies to cases heard and decided on or after that date.
A basic child support obligation is determined from the schedule of Basic Child Support Obligations. This amount is derived from the combined income of both parents and the number of children to be counted. The number of children refers only to those children for whom support is being sought in this action, not a total of all children presently being supported by the parents.
If the parents’ combined gross income amount falls between the amounts shown on the schedule, the basic child support obligation should be interpolated. "Interpolation" is the estimation of a value between known values.
The schedule is updated using economic research that represents estimates of total expenditures on child rearing costs to age eighteen (18), takes certain expenses into consideration, and makes particular assumptions as follows:
1. Reflects child rearing costs, minus child care, health insurance, and health care costs in excess of $250 per year;
2. Presumes that the parent who is receiving child support is claiming the tax exemptions for the child (if not, the court can consider deviating from the guidelines);
3. Does not factor in costs for visitation.
For ease of application, the schedule is based upon net income converted to gross annual income by incorporating State and Federal tax rates and Federal Insurance Contribution Act (FICA). Gross income is income before deductions for Federal or State income taxes, Social Security or Medicare taxes, health insurance premiums, retirement contributions or other withholdings from the parent's income.
Since these considerations are factored into the schedule, no manual calculations are needed. However, being aware of this information can assist CSE caseworkers in adequately responding to inquiries from client and NCPs.
Effective July 1, 1990, the income shares model was adopted as presumptive guidelines in North Carolina. The income shares model is predicated on the concept that the child involved should receive the same proportion of parental income that he/she would have received if the parents lived together.
Using the Income Shares Guidelines involves five (5) steps:
1. Determining the custody status of the child(ren);
2. Calculating the combined income of both parents;
3. Determining the adjustments or expenses paid by each parent;
4. Determining the joint parental child support obligation based on the income of both parents and the number of children; and
5. Allocating child support between the parents by prorating the obligation based on the physical custody of the children.
The guidelines include a self-support reserve based on the 2009 federal poverty level for a one-person household. If an NCP has an adjusted gross income of $1050 or less per month, the guidelines require, absent a deviation, the establishment of a minimum support order of $50.00 per month for cases that use Worksheet A (Primary Custody).
If the NCP pays support for more than one family, the support order amount is $50.00 per month for each family. The self-support reserve is not applied when using Worksheet B (Joint/Shared Custody)or Worksheet C (Split Custody).
To prevent disproportionate increases in child support obligations and protect the self-support reserve, certain income levels require that only the NCP's income be considered in determining the obligation amount. amount. These levels are represented within the shaded area of the Schedule of Basic Support Obligations.
When the NCP's income falls within these levels, child care, health insurance premiums, and extraordinary expenses are not used to calculate the child support obligation. However, payment of these costs by either parent can be a basis for deviation.
“Income” is defined as gross income of each parent from any source and includes (but is not limited to) income from salaries, wages, commissions, bonuses, dividends, severance pay, pensions, interest, trust income, annuities, capital gains, social security benefits, unemployment insurance compensation, disability pay, insurance benefits, gifts, prizes, and alimony or maintenance received from persons other than parties involved in this action.
For purposes of determining a child support obligation, the Obligation Calculation worksheets must include the incomes of both parents.
When establishing or modifying a child support order, the amount of the obligor's gross income can be verified by a written statement signed by the obligor's employer or the employer's designee or an Employer Verification Letter/Employer Letter (DSS-4685). Either is admissible evidence in court.
Per G.S. 50-13.4(b), a non-parent custodian does not have a legal primary duty to support. If a non-parent custodian seeks child support from one or both of the child's parents, the income of both of the child's parents must be included on the child support worksheet. In this situation, the self-support reserve is not applied.
Non-recurring income or one-time payments such as lottery winnings can be averaged out and included in the calculation, but must be distinguished from the ongoing income. The court can:
1. Prorate the income over a specified period of time; or
2. Require an obligor to pay as child support a percentage of the non-recurring income that is equivalent to the percentage of the recurring income paid for child support.
SSA (Social Security Administration) benefits received on behalf of a child as a result of the disability or retirement of either parent are included as income attributed to the parent on whose earnings record the benefits are paid. These benefits are deducted from that parent's child support obligation.
Specifically excluded as sources of income are:
Gross income from self-employment or ownership of a business is defined as gross receipts minus ordinary and necessary expenses required for self-employment or business operation.
Amounts allowable by the Internal Revenue Service for the accelerated component of depreciation expenses, investment tax credits, or other business expenses are inappropriate for the purposes of calculating support. In most cases, this amount differs from a determination of business income for tax purposes. CSE caseworkers must verify the income by using the gross income from the NCP's most recent tax return or from other resources.
Employment-related, in-kind income received by a parent such as a company car, free housing, or reimbursed meals can be included as gross income if this type of income reduces personal living expenses. CSE does not make a determination as to the value of any in-kind income. Such determinations are left to the discretion of the court.
Child support can be calculated based on potential income only if the court finds that the parent's voluntary unemployment or underemployment is the result of a parent's bad faith or deliberate suppression of income to avoid or minimize his/her child support obligation.
Potential income cannot be imputed when:
1. The parent has been determined to be physically or mentally incapacitated;
2. The parent is caring for a child under three (3) years of age for whom support is being established;
3. Not enough information is available to make a determination of a parent's bad faith.
When it is appropriate to impute potential income to parent, the imputed amount must be based on the parent's recent work history and occupational qualifications and on the prevailing job opportunities in the community. If the parent has no recent work history or vocational training, any imputed amount of potential income should not be less than the minimum hourly wage for a 40-hour work week.
For those cases in which potential income can be a consideration, caseworkers must review the individual case based on the above-referenced criteria and make a determination of whether to factor in the potential income or ask the court to rule on the issue.
If the child support obligation is based on potential or imputed income, the court order or Voluntary Support Agreement (VSA) must include:
A pre-existing support obligation is one that is in effect at the time a child support order in the pending action is entered or modified, regardless of whether the child(ren) for whom support is being paid was born before or after the child(ren) for whom support is being determined.
Current child support payments (excluding payments toward arrearages) actually made by a parent under any pre-existing court order, separation agreement, or voluntary support arrangement are deducted from the parent's gross income. The court can consider a voluntary support arrangement as a pre-existing child support obligation when the supporting parent has consistently paid child support for a reasonable and extended period of time. It is recommended that consideration of existing obligations be given if the supporting party has consistently made payments for a period of at least six (6) months.
The parent must provide documentation of such payments (on current support only) in order to receive the deduction. This adjustment only applies to either parent’s natural or adopted children who are not involved in the present action.
The fact that a parent pays child support for two (2) or more families under two (2) or more child support orders, separation agreements, or or voluntary support agreements can be considered as a factor warranting deviation from the child support guidelines. The guidelines include a recommendation to set all actions to establish, review, or modify a court order for a parent with multiple obligations for hearing at the same court session. This can allow the court to receive evidence on all obligations and make rulings on each of them at one time, thereby offering more equitable consideration of a parent's ability to support and more efficient use of the court's time.
When establishing or modifying any order for a parent with multiple obligations, CSE should consider whether the parent's other court orders are eligible for review and, if possible, schedule hearings for all of them at the court session. If this is not possible, advise the court of the parent's additional obligations for consideration in any determination of deviation from the guidelines.
If either parent has natural or adopted minor children in the household who are not a party to the present action, the parent's financial responsibility for those children is deducted from the parent's gross income. This deduction is appropriate when a child support order is entered or modified, but it cannot be the sole basis for modifying an existing order.
The financial responsibility for natural or adopted children who currently reside with the parent is equal to the basic child support obligation for these children based on the parent's income.
A parent's pre-existing order to pay alimony must not be considered as a deduction from gross income. The court can consider the payment of alimony as a reason for deviation from the guidelines.
The amount that is or will be paid by a parent or a parent’s spouse for health insurance (medical OR medical and dental) for the child(ren) for whom support is established is added to the basic child support obligation. The amount included in the calculation is the amount of the health insurance premium attributable to the child(ren) covered by the present action. If this amount is not available or cannot be verified, the total cost of the premium is divided by the total number of persons who are covered by the policy and then multiplied by the number of children who are covered by the policy and are subject to the present order.
If the coverage is provided through an employer of the parent or stepparent, only the employee's portion of the cost should be considered.
For any case, including one with a parent whose income falls within the shaded area, the court can order either parent or both parents to pay uninsured medical expenses in such proportion as the court decrees appropriate. Those expenses include:
1. Uninsured medical or dental expenses in excess of $250.00 per year.
2. Other uninsured health care costs, including reasonable and necessary costs related to:
A. Orthodontia;
B. Dental care;
C. Asthma treatments;
D. Physical therapy;
E. Treatment of chronic health problems;
F. Counseling or psychiatric therapy for diagnosed mental disorders.
A basic child support obligation is determined based on the N.C. Child Support Guidelines. This amount is derived from the combined income of both parents and the number of children for whom support is being sought. Amounts of child support are calculated to a combined income level of $25,000 per month.
For cases with a higher combined monthly adjusted gross income, the child support should be determined on a case-by-case basis by the court. The schedule of basic child support can assist the court in determining a minimal level of child support.
Reasonable child care costs that are or will be paid by a parent due to employment or job search are added to the basic obligation and prorated between the parents, based on their income. Reasonable child care costs can be determined by considering the prevailing local rates and any unique individual circumstances. Other reasonable costs, such as costs incurred while a custodial parent attends school, can be a basis for a deviation.
If the gross monthly income of the parent paying the costs falls below the following levels, one hundred percent (100%) of the child care costs are added.
1 child |
= $1,850 |
2 children |
= $2,500 |
3 children |
= $2.800 |
4 children |
= $3,100 |
5 children |
= $3,400 |
6 children |
= $3,700 |
If the income of the parent exceeds these levels, seventy-five percent (75%) of the child care costs are included since the parent would be entitled to income tax credit for child care expenses.
Adjustments to the recommended child support order can be made to include the following child-related extraordinary expenses:
1. Special or private elementary or secondary schools to meet a particular educational need of the child;
2. Transportation expenses for the child to travel between the homes of the parents.
Only the expenses for the child in question are to be considered for inclusion. Extraordinary expenses are added to the recommended child support order apportioned in the same manner as the basic child support obligation.
The court can modify a support obligation either upward or downward from the amount that results from the application of the guidelines if it determines that the application of the guidelines would be inequitable to one of the parties or to the child. For a Non-Public Assistance case, a Voluntary Support Agreement (VSA) can be entered in an amount of support that varies from the guidelines only if both the client and NCP are aware of the guidelines amount and agree to the variation. Voluntary deviation from the guidelines in a Public Assistance case is not recommended, since public funds are involved. It is best that the court hears these cases.
Whether all parties agree to an amount which deviates from application of the guidelines or the court orders an amount other than that determined by the guidelines, the order must include written findings that:
1. State the amount of the presumptive child support obligation that is determined by the guidelines;
2. Determine the reasonable needs of the child and relative ability of each parent to provide support;
3. Support the court's conclusion that the presumptive amount of child support that is determined under the guidelines is inadequate or excessive or that application of the guidelines is otherwise inappropriate; and
4. State the basis on which the court determined the amount of the child support ordered.
When preparing a VSA for an amount of child support that varies from the guidelines, local CSE must:
At a court hearing where an amount of support is determined that deviates from the guidelines, CSE must provide the court with:
Social Security benefits that are received for the benefit of a child as a result of disability or retirement are included as income attributed to the parent on whose earnings record the benefits are paid. This benefit is then deducted from that parent's child support obligation dollar for dollar. SSA benefits that are received for the benefit of children who are not a party to the present action are not included as income for the parent.
Once a basic child support obligation is calculated, the Social Security benefit is deducted from the parent's child support obligation shown on the worksheet.
If this deduction reduces the child support obligation to an amount greater than $0.00, any order for child support should include written findings, stating the guidelines obligation amount and the amount of Social Security benefits received for the child.
If this deduction reduces the child support obligation to $0.00, no child support obligation should be entered for the parent, unless the court determines to deviate from the guidelines.
Gross income must be verified by documentation of both current and past income. Verification can include pay stubs, employer statements, or Division of Employment Security (DES) inquiry.
When establishing or modifying a child support order, the amount of the obligor's gross income can be verified by a written statement signed by the obligor's employer or the employer's designee or an Employer Verification Letter/Employer Letter (DSS-4685). Either is admissible evidence in court.
The most recent tax return is requested if the parent is self-employed or if further documentation is needed. If the client does not cooperate in the verification or disclosure of income, caseworkers follow the procedures for noncooperation.
“Primary” custody indicates that physical custody of the child(ren) is with one parent (or a third party) for at least 243 nights during the year.
In a primary custody CSE case, the total child support obligation is divided between the parents in proportion to their income. Although a monetary obligation is computed for each parent, only the noncustodial parent's (NCP's) share is payable as child support. The custodial parent's share is presumed to be spent directly on the child.
“Joint” or “shared” custody indicates that:
1. Parents share custody of all the children for whom support is being determined (not extended visitation); or
2. One parent has primary physical custody of one or more of the children, and the parents share custody of another child.
The self-support reserve is NOT applied in these situations.
Parents share physical custody when the child lives with each parent at least one-third of the time (at least 123 overnights during the year). An adjustment is made in the formula to represent the additional cost of maintaining two separate households for the child(ren) in the present action. If physical custody reaches the one-third threshold, this adjustment should be applied without regard to the legal custody of the child.
The child support obligation is set by first determining the percentage of time each child spends with each parent and offsetting the obligation; the parent owing more child support pays the difference between the two amounts. Therefore, it is possible that a client who is involved in a true joint custody situation might owe child support to the noncustodial parent (NCP) for the case. For a Non-TANF case, the client could elect to have the case closed. The other parent then could seek CSE services to pursue support. If this situation occurs for a Public Assistance case, the CSE case manager, not the client, would be responsible for making any determination to close the case.
“Split” custody indicates that more than one child involved in the action and each parent has physical custody of at least one of the children.
The fact that each parent incurs direct expenses for rearing the child(ren) in his/her own household is taken into consideration. The obligation is prorated by calculating the basic child support obligation and multiplying by a percentage reflecting the number of children with each parent; this figure is then multiplied by each parent's percentage share of the income.
The parent who owes the resulting larger amount should pay the difference between the two amounts. It could be determined that the noncustodial parent (NCP) should not be required to pay child support. The client should be advised of this result, and the client could elect to have the case closed.
“Third Party” custody indicates that physical custody of the child(ren) is with a third party rather than with either parent. Both legal parents can be pursued for support of the child(ren). Separate CSE cases are established with one parent as the noncustodial parent (NCP) for each case. If support obligations are established for both parents, it is preferable that they have separate court orders with separate docket numbers.
When unable to obtain current wage information for parent, CSE caseworkers can consider imputing income for that parent, if they have reason to believe that the parent is willfully failing to take financial responsibility for a child. If no information exists to suggest this, no imputed income should be assigned to this parent. A support obligation for the other parent would be determined using only the income and expenses of that parent.
If a child has only one legally responsible parent, that parent's support obligation is based only on his/her income. (EX: If the mother is being pursued for support but paternity has not been established, her support obligation is based only on her income and expenses for the child.)
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For questions or clarification on any of the policy contained in these manuals, please contact your local county office. |
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