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

Description of figures

Figure 1 -  Finances of the Post Separation Households

Simply stated, the model equalises the financial circumstances of the two households. The household income of the paying parent is determined by subtracting taxes and the expenditures of a single adult (as determined by Statistics Canada) from income. The household income of the receiving parent is determined by subtracting taxes, the expenditures on children (as determined by Statistics Canada) and the expenditures of a single adult (as determined by Statistics Canada) from income.  Based on this calculation, a table amount is transferred to the receiving parent to wb-eqht the financial circumstances.s

Formula A

  • (numerator) Income of paying parent minus taxes of paying parent minus table amount
  • (denominator) expenditures of single adult
Equals
  • (numerator) income of receiving parent – taxes of receiving parent plus table amount
  • (denominator) expenditures of single adult AND children

[ Return to Formula A ]

Formula B

  • (numerator) Income of paying parent minus taxes of paying parent minus table amount
  • (denominator) Adult Equivalence Unit for the paying parent
Equals
  • (numerator) income of receiving parent – taxes of receiving parent plus table amount
  • (denominator) Adult Equivalence Unit for the receiving parent AND children

[ Return to Formula B ]

Formula C

  • (numerator) Income of paying parent minus taxes of paying parent minus table amount
  • (denominator) 1.0
Equals
  • (numerator) income of receiving parent – taxes of receiving parent plus table amount
  • (denominator) Adult Equivalence Unit for the receiving parent AND children

[ Return to Formula C ]

Formula D

  • Table Amount
Equals
  • (numerator) [(Adult Equivalence Unit for the paying parent)(Income of paying parent minus taxes of paying parent)] minus (income of receiving parent – taxes osf receiving parent)
  • (denominator) 1.0 plus Adult Equivalence Unit for the receiving parent

[ Return to Formula D ]

Formula E

  • Table Amount

Equals
  • numerator) 1.7(Income of paying parent minus taxes of paying parent) minus (income of receiving parent – taxes of receiving parent)
  • (denominator) 2.7

[ Return to Formula E ]

[ Return to Figure 1 ]

Figure 2 - Effect of Capping Versus No-Capping on Child Support Table Amounts

Cappsing

  • income of $7,000 results in a $200 Amount
  • income of $8,000 results in a $800 Amount
  • income of $9,000 results in a $1250 Amount
  • income of $10,000 results in a $1400 Amount
  • income of $11,000 results in a $1800 Amount
  • income of $12,000 results in a $2100 Amount
  • income of $13,000 results in a $2400 Amount
  • income of $14,000 results in a $2500 Amount
  • income of $15,000 results in a $2650 Amount
  • income of $16,000 results in a $2800 Amount
  • income of $17,000 results in a $3000 Amount
  • income of $18,000 results in a $3100 Amount
  • income of $19,000 results in a $3250 Amount
  • income of $20,000 results in a $3500 Amount

No-capping

  • income of $7,000 results in a $1800 Amount
  • income of $8,000 results in a $2100 Amount
  • income of $9,000 results in a $2200 Amount
  • income of $10,000 results in a $2150 Amount
  • income of $11,000 results in a $2200 Amount
  • income of $12,000 results in a $2350 Amount
  • income of $13,000 results in a $2400 Amount
  • income of $14,000 results in a $2500 Amount
  • income of $15,000 results in a $2650 Amount
  • income of $16,000 results in a $2800 Amount
  • income of $17,000 results in a $3000 Amount
  • income of $18,000 results in a $3100 Amount
  • income of $19,000 results in a $3250 Amount
  • income of $20,000 results in a $3500 Amount

[ Return to Figure 2 ]

 

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