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FORMULA FOR THE TABLE OF AMOUNTS CONTAINED IN THE FEDERAL CHILD SUPPORT GUIDELINES: A TECHNICAL REPORT

Appendix 1
FEDERAL, PROVINCIAL AND TERRITORIAL TAX PARAMETERS USED IN FORMULA

Jurisdiction	Basic Tax	Flat Rate Tax	Surtax	Tax Reduction	Tax Credits
Federal	Basic federal tax		Surtax 1: as a % of basic federal tax Surtax 2: after the basic federal tax reaches a certain threshold	CPP/QPP cont. and EI (formerly UIC) premiums	GST tax credits for adult, or parent portion only Basic personal non-refundable tax credit Equivalent-to-spouse non-refundable tax credit for the receiving parent
Newfoundland	As a % of basic federal tax		When the prov. tax reaches a certain threshold
Prince Edward Island	As a % of basic federal tax		When the prov. tax reaches a certain threshold
Nova Scotia	As a % of basic federal tax		When the prov. tax reaches a certain threshold	A function of number of children Clawback is a function of net family income
New Brunswick	As a % of basic federal tax		When the prov. tax reaches a certain threshold
Quebec	Federal abatement Quebec provincial taxes
Ontario	As a % of basic federal tax		Surtax 1: when the prov. tax reaches a certain threshold Surtax 2: when the prov. tax reaches a second, higher threshold	Reduces or eliminates the amount of Ontario tax otherwise payable Increased reduction for taxpayers with dependent children	Property and sales tax credits (assuming housing costs at 30% of net income)
Manitoba	As a % of basic federal tax	Manitoba net income tax: flat rate tax on federal net income	Surtax (with reductions for basic, for equivalent-to-spouse and for children) based on the Manitoba net income tax	Tax reduction: with basic, equivalent-to-spouse and child components Clawback based on the Manitoba net income tax	Cost-of-living tax credit Property tax credit (assuming housing costs at 30% of net income)
Sask.	As a % of basic federal tax	Based on federal net income	Surtax 1: when the provincial tax reaches a certain threshold [Note: technically, the threshold is sometimes described as $0, but the first $150 (in 1997) are not payable, so this is the equivalent of a threshold] Surtax 2: when the provincial tax reaches a second, higher threshold	Reduction for self (sometimes referred to as the sales tax amount) and reductions for equivalent-to-spouse and for children Clawback based on net income
Alberta	As a % of basic federal tax	Based on taxable income	When provincial tax reaches a certain threshold	Reduction which decreases as a function of provincial tax payable Reduction only applies when tax payable is below a fixed low amount
British Columbia	As a % of basic federal tax		Surtax 1: when provincial tax reaches a certain threshold Surtax 2: when provincial tax reaches a second, higher threshold	Surtax reduction for equivalent-to-spouse and for children	Sales tax credit and clawback
Yukon	As a % of basic federal tax		When territorial tax reaches a certain threshold
Northwest Terr.	As a % of basic federal tax				Cost-of-living tax credit based on net income