For the purposes of calculating Child Support income is defined as follows by 23 Pa.C.S. §4302:
“Income.” —Includes compensation for services, including, but not limited to, wages, salaries, bonuses, fees, compensation in kind, commissions and similar items; income derived from business; gains derived from dealings in property; interest; rents; royalties; dividends; annuities; income from life insurance and endowment contracts; all forms of retirement; pensions; income from discharge of indebtedness; distributive share of partnership gross income; income in respect of a decedent; income from an interest in an estate or trust; military retirement benefits; railroad employment retirement benefits; social security benefits; temporary and permanent disability benefits; workers’ compensation; unemployment compensation; other entitlements to money or lump sum awards, without regard to source, including lottery winnings; income tax refunds; insurance compensation or settlements; awards or verdicts; and any form of payment due to and collectible by an individual regardless of source.23 Pa.C.S. § 4302
The basic calculations of child support in Pennsylvania essentially add up the net incomes of the two parties and then puts them in a chart ( Per Rule 1910.16-3. Support Guidelines. Basic Child Support Schedule.) which determines total child support payments. That payment is then split by the incomes of the parties as a percentage of the total amount they earn. The amount of custody also effects the total amount payable by the parties. ( Per Rule 1910.16-4. Support Guidelines. Calculation of Support Obligation, Formula.) This calculation gives a basic child support amount which then is changed by a series of deviations. (Rule 1910.16-5. Support Guidelines. Deviation.) Although these deviations are typically limited to monetary and medical issues, the custody Court / Master has relatively wide latitude in providing deviations. Expenses can also be included and can cause deviations – with the basic expenses being medical expenses and child care expenses, which can include daily child care – and these expenses will be apportioned between the parties.
This will give you a general idea of how support is calculated. In further posts we will discuss specific costs and whether Courts include them in the child support calculation.