South Carolina Code of Regulations › Chapter 114 - DEPARTMENT OF SOCIAL SERVICES › Article 47 - CHILD SUPPORT GUIDELINES › Section 114-4720 - Determination of Child Support Awards

Current through Register Vol. 48, No. 6, June 28, 2024
A. Income
1.
			 Definition
The guidelines define income as the actual gross income of the
				parent, if employed to full capacity, or potential income if unemployed or
				underemployed. Gross income is used in order to avoid contention over issues of
				deductibility which would otherwise arise if net income were used. The
				guidelines are based on the assumption that the parent with the legal
				obligation to pay support will have only one federal exemption and will have
				higher taxes than the parent to whom support is owed. Adjustments have been
				made in the Schedule of Basic Child Support Obligation for lower child support
				payments. Other factors included in the schedule are South Carolina taxes,
				FICA, and earned income.
2.
			 Gross Income
Gross income includes income from any source including
				salaries, wages, commissions, royalties, bonuses, rents (less allowable
				business expenses), dividends, severance pay, pensions, interest, trust income,
				annuities, capital gains, Social Security benefits (but not Supplemental Social
				Security Income), workers' compensation benefits, unemployment insurance
				benefits, Veterans' benefits and alimony, including alimony received as a
				result of another marriage and alimony which a party receives as a result of
				the current litigation. Unreported case income should also be included if it
				can be identified.
A. The court may
			 also take into account assets available to generate income for child support.
			 For example, the court may determine the reasonable earning potential of any
			 asset at its market value and assess against it the current treasury bill
			 interest rate or some other similar appropriate method of computing
			 income.
B. In addition to
			 determining potential earnings, the court should impute income to any
			 non-income producing assets of either parent, if significant, other than a
			 primary residence or personal property. Examples of such assets are vacation
			 homes (if not maintained as rental property) and idle land. The current rate
			 determined by the court is the rate at which income should be imputed to such
			 nonperforming assets.
3.
			 Gross income does not include:
A. Benefits
			 received from means-tested public assistance programs, such as Temporary
			 Assistance to Needy Families (TANF), Supplemental Security Income (SSI), Food
			 Stamps and General Assistance;
B.
			 Income derived by other household members; and/or
C. In-kind income; however, the court should
			 count as income expense reimbursements or in-kind payments received by a parent
			 from self-employment or operation of a business if they are significant and
			 reduce personal living expenses, such as a company car, free housing, or
			 reimbursed meals. With regard to military allotments, individuals not receiving
			 Housing allotments should be imputed with the BAH-II amount for dependents.
			 This differential is consistent and unrelated to the domicile location of the
			 service member, as well as easily obtained.
4. Income from Self-Employment or Operation
			 of a Business
For income from self-employment, proprietorship of a business,
				or ownership or a partnership or closely held corporation, gross income is
				defined as gross receipts minus ordinary and necessary expenses required for
				self-employment or business operation, including employer's share of FICA.
				However, the court should exclude from those expenses amounts allowed by the
				Internal Revenue Service for accelerated depreciation or investment tax credits
				for purposes of the guidelines and add those amounts back in to determine gross
				income. In general, the court should carefully review income and expenses from
				self-employment or operation of a business to determine actual levels of gross
				income available to the parent to satisfy a child support obligation. As may be
				apparent, this amount may differ from the determination of business income for
				tax purposes.
5. Potential
			 Income
If the court finds that a parent is voluntarily unemployed or
				underemployed, it should calculate child support based on a determination of
				potential income which would otherwise ordinarily be available to the parent. A
				determination of willful or voluntary unemployment or underemployment shall not
				be made when an individual's incarceration prevents employment. If income is
				imputed to a parent to whom support is owed, the court may also impute
				reasonable day care expenses. Although Temporary Assistance to Needy Families
				(TANF) and other means-tested public assistance benefits are not included in
				gross income, income may be imputed to these recipients. However, the court may
				take into account the presence of young children or handicapped children who
				must be cared for by the parent, necessitating the parent's inability to
				work.
A. The court may also wish to
			 factor in considerations of rehabilitative alimony in order to enable the
			 parent to become employed.
B. In
			 order to impute income to a parent who is unemployed or underemployed, the
			 court should take into consideration the specific circumstances of the parent
			 to the extent known, including such factors as the parent's assets, residence,
			 employment and earnings history, job skills, educational attainment, literacy,
			 age, health, criminal record and other employment barriers, and record of
			 seeking work, as well as the local job market, the availability of employers
			 willing to hire the parent, prevailing earning level in the community, and
			 other relevant factors in the case.
6. Income Verification
Ordinarily, the court will determine income from verified
				financial declarations required by the Family Court rules. However, in the
				absence of any financial declaration, or where the amounts reflected on the
				financial declaration may be an issue, the court may rely on suitable
				documentation of current earnings, preferably for at least one month, using
				such documents as pay stubs, employer statements, receipts and expenses if the
				parent is self-employed, and oral testimony provided under oath. Verification
				of current earnings, whether reflected on a financial declaration or not, can
				be supported with copies of the most recent tax returns filed by the payer.
				Income can also be verified through the Employment Security Commission or
				through the State Department of Revenue.
7. Monthly Alimony (this action)
Any award of alimony between the parties should be taken into
				consideration by the court when utilizing these guidelines as a deduction from
				the payer spouse's gross income, and as gross income received by the recipient
				spouse. Because of their unique nature, lump sum, rehabilitative reimbursement,
				or any other alimony the court may award, may be considered by the court as a
				possible reason for deviation from these guidelines. The purpose of this
				adjustment is not to give priority to alimony or child support payments, but to
				recognize that each parent's proportional share of total combined monthly
				income changes with the introduction of any alimony award between the parties,
				and to provide for a sharing of the Total Combined Monthly Child Support
				Obligation based upon each parent's actual percentage share of the total
				combined monthly income, taking into consideration the financial impact of any
				alimony award between them, rather than the parent's share of the total
				combined monthly income as it existed before any alimony award. Accordingly,
				the court, in its discretion, may consider any modification or termination of
				any alimony award between the parties of a child support award made under these
				guidelines. This adjustment does not affect the Total Combined Monthly Child
				Support Obligation of both parents as determined under these guidelines, which
				may be determined before any determination on the issue of alimony, as the
				total combined monthly income of both parties will remain the same irrespective
				of any income shifting between the parents as the result of an alimony
				award.
8. Other Monthly
			 Alimony or Child Support Paid
Any previous or existing court orders requiring the payment of
				child support, alimony, or both, should be protected by any subsequent child
				support order. Alimony actually paid as a result of another marriage or child
				support actually paid for the benefit of children other than those considered
				in this computation, to the extent such payment or payments are required by a
				previous or existing court order, should be deducted from gross
				income.
9. Other Children in
			 the Home
Either parent shall receive credit for additional natural or
				adopted children living in the home, but not for step-children, unless a court
				order establishes a legal responsibility. Such credit shall be given whether or
				not such children are supported by a third party. The basis of this is to
				recognize the responsibility of the parent to whom support is owed and share in
				supporting those other children in the home just like that parent's
				responsibility and share to the child or children in the present
				calculation.
Using the income of the parent with the additional child(ren)
				in the home only, the basic child support obligation for the number of
				additional dependents living with that parent (from the Schedule of Basic Child
				Support Obligations) is determined for that parent. This figure is multiplied
				by .75 and the resulting credit is subtracted from that parent's gross
				income.
10. Basic Child
			 Support Obligation
The court can determine the basic child support obligation
				using the Schedule of Basic Child Support Obligations. "Combined gross income"
				refers to the combined monthly gross incomes of the parents. Where combined
				gross income amounts fall between the amounts reflected in the Schedule of
				Basic Child Support Obligations, the court is encouraged to extrapolate
				upwardly to set the basic award. The number of children refers to that number
				for whom the parents share support responsibility and for whom support is being
				sought.
11. Self Support
			 Reserve
A self support reserve allows a low-income parent with the
				legal duty to pay support to retain a minimal amount of income before being
				assessed a full percentage of child support. This insures that the parent with
				the legal duty to pay support has sufficient income available to maintain a
				minimum standard of living which does not affect negatively his or her earning
				capacity, incentive to continue working, and ability to provide for him or
				herself. These Guidelines incorporate a self support reserve of $1,010.50 per
				month. In order to safeguard the self support reserve in cases where the income
				of the parent with the obligation to pay support and corresponding number of
				children fall within the shaded area of the Schedule of Basic Child Support
				Obligations, the support obligation must be calculated using the obligor's
				income only. To include the income of the parent to whom support is owed in the
				calculation of such cases, or include any adjustments like medical insurance or
				day care expense, would reduce the net income of the parent with the legal duty
				to pay support to an amount below the self support reserve.
12. Health Insurance
The court shall consider provisions for the children's health
				care needs through health care coverage and/or cash medical support. The court
				should require coverage by one or both parents who can obtain the most
				comprehensive coverage through an employer or otherwise, at the most reasonable
				cost. If either or both parents carry health care coverage for the child(ren)
				who is to receive support, the cost of the coverage should be added. If the
				employer provides some measure of coverage, only that amount actually paid by
				the employee or contributed by the employee should be added. This amount should
				be determined by the difference between self-only coverage and family coverage,
				or the cost of private medical insurance for the child. If the amounts for
				self-only and family coverage cannot be verified, the total cost of the premium
				should be divided by the total number of persons covered by the policy and then
				multiplied by the number of children in the support order. The party
				responsible for paying the health insurance premium will receive a credit. The
				guidelines are based on the assumption that the party to whom support is owed
				will pay up to $250.00 per year per child in uninsured medical expenses. The
				Schedule of Basic Child Support Obligations includes $250 per child per year
				for uninsured medical expenses such as co-pays, over-the-counter medicines and
				similar expenses. Reasonable and necessary unreimbursed medical expenses in
				excess of this $250 per child per year shall be divided in pro rata percentages
				based on the proportional share of combined monthly adjusted gross income. The
				determination of "reasonable and necessary" would be at the discretion of the
				court.
13. Extraordinary
			 Medical Expense
Medical expenses that incurred on a regular basis should be
				incorporated into the monthly support calculation for concurrent payment as
				opposed to reimbursement. The amount of such extraordinary medical expenses
				must be readily determinable and incurred regularly, as determined by the
				Court. Examples could include professional counseling and allergy treatments.
				Any such expenses classified as extraordinary should not be included in any
				reimbursement addressed above.
14. Child Care Costs
The cost of child care the parent incurs due to employment or
				the search for employment, net of the federal and state income tax credit for
				such child care, is to be added to the basic obligation. This is to encourage
				parents to work and generate income for themselves as well as their children.
				Child care costs must be reasonable, not to exceed the level required to
				provide high quality care for children from a licensed provider absent
				exceptional circumstances. As parents to whom support is owed may be eligible
				for qualified tax credits, the actual child care expense should be adjusted to
				recognize this credit. This adjustment may take place in two ways. In cases
				where the primary residential parent's gross income exceeds the thresholds
				listed below, the actual or allowed child care cost is multiplied by .27 to
				simulate the federal and state income tax credits. The lesser of the simulated
				amount and $68.00 for one child and $135 for two or more children is subtracted
				from the actual or allowed child care cost. It is entered as the adjusted
				amount on the appropriate line 6.c.
One Child
Two Children
Three Children
Four Children
Five Children
Six Children
Primary
Residential
Parent's
$3,200
$4,600
$6,000
$6,785
$7,650
$8,400
Monthly
Income
These thresholds are based upon the standard deduction for
				head-of-household, dependent exemptions, and the intricate application of the
				child care tax credit. While these will hold true in most cases, judges can
				always review child care costs with the actual credit method, below. The
				maximum amounts for the tax credits that can be subtracted from actual or
				allowed day care are based on the maximum qualifying child care expense
				according to federal and state tax code.
The other method would be to take the actual costs and subtract
				the actual value of the federal and state tax credit such as determined by the
				last filed IRS Form 2441 and SC 1040, Line 11. This adjusted amount would then
				be entered on line 6.c.
15.
			 Computation of Child Support
The court can determine a total child support obligation by
				adding the basic child support obligation, health insurance premium (portion
				covering children), and work related child care costs.
A. The total child support obligation is
			 divided between the parents in proportion to their income. Each parent's
			 proportional share of combined adjusted gross income must be calculated.
			 Compute the obligation of each parent by multiplying each parent's share of
			 income by the total child support obligation, and give the necessary credit for
			 adjustments to the basic combined child support obligation.
B. Although a monetary obligation is computed
			 for each parent, the guidelines presume that the parent to whom support is owed
			 will spend that parent's share directly on the child in that parent's custody.
			 In cases of joint custody or split custody, where both parents have
			 responsibility of the child for a substantial portion of the time, there are
			 provisions for adjustments.