Overtime, bonuses and commissions in child support

Paychecks are rarely the same every month. Overtime comes and goes, bonuses land once a year, commissions follow sales, and some parents take a second job. Since income is the biggest input in any child support worksheet, parents on both sides want to know which of that money counts and how it is measured.

The short answer: overtime, bonuses and commissions are usually income, but a number of states limit overtime and second-job pay, and most average irregular pay rather than taking one paycheck. This guide explains the general rule, the main state limits with official citations, and how to enter variable pay in an estimate. It is general information, not legal advice, and courts can deviate from the guidelines.

The general rule: variable pay is income

Federal rules require each state’s guidelines to take into consideration all earnings and income of the noncustodial parent (45 CFR 302.56). States write their own lists from there, and pay for work almost always counts whatever it is called. South Dakota’s list, for example, covers compensation for personal services “whether salary, wages, commissions, bonus, or otherwise designated” (SDCL § 25-7-6.3).

Among the states this site covers, 27 name overtime in their income lists, 44 name bonuses and 46 name commissions. States that don’t name them generally reach them through broad wording, such as income from any source, subject to the limits below. The wider question of what counts is covered in what counts as income for child support.

States that limit overtime and second jobs

The differences show up at the edges: overtime that may not last, and extra work on top of a full-time job. States handle this in a few ways.

Only regular or expected overtime. Wyoming leaves overtime out of income unless the court, after looking at all overtime earned in the preceding 24 months, finds it can reasonably be expected to continue on a consistent basis (Wyo. Stat. § 20-2-303). In South Dakota, overtime, commissions and bonuses may be excluded if they are not a regular and recurring source of income for the parent (SDCL § 25-7-6.3). Utah generally counts earned income up to one full-time job and considers overtime only when the parent consistently worked it before the original order (Utah Code § 81-6-203).

A share of the average. West Virginia counts half of a parent’s average overtime pay over the last 36 months, unless the overtime is voluntary and new (W. Va. Code § 48-1-228).

A weekly cap. For hourly workers, Connecticut counts regular, overtime and additional employment only up to 45 total paid hours a week (Regs. Conn. State Agencies § 46b-215a-1).

Extra work under defined conditions. Minnesota leaves out pay for work beyond a 40-hour week only when strict conditions are all met: the extra work began after the case was filed, is voluntary, is more than the parent worked before, and is paid by the hour, and the order is at least the guideline amount on the remaining income (Minn. Stat. § 518A.29). Washington excludes overtime or second-job income beyond 40 hours a week, averaged over 12 months, when it is worked to meet a current family’s needs or retire past debts and the court finds it will stop once the debts are paid (Wash. Rev. Code § 26.19.071).

Second jobs. Virginia excludes secondary employment income, including overtime, that a parent took on to pay off a child support arrearage being paid under an order (Va. Code § 20-108.2). In South Dakota, when a parent’s primary job earns at least the state minimum wage times 1,820 hours a year, second-job income is presumed not to count (SDCL § 25-7-6.22).

Across the states covered here, the exclusion lists of Idaho, Louisiana, Minnesota, New Hampshire, North Dakota, South Dakota, Washington and Wyoming can leave out some overtime in defined situations. Elsewhere, courts weigh the same concerns case by case, and second-job income generally counts unless the state’s rules say otherwise.

Averaging irregular income

When pay goes up and down, a single month or year can mislead. Courts commonly average variable pay over a period that reflects the real pattern, using pay stubs, wage statements and tax returns.

Michigan spells out the method. Where monthly income varies because of overtime, second jobs, bonuses or profit sharing, income is calculated from at least the preceding 12 months. Where income varies considerably from year to year because of the nature of the parent’s work, 3 years of information are used, and evidence that overtime or second-job income will change in the future may be considered (§ 2.02 of the Michigan Child Support Formula). The same manual lists bonus income in varying amounts or at irregular intervals as a reason a court may deviate from the formula.

Averaging works the same way for commissions. A parent whose yearly commissions were $6,000, $12,000 and $9,000 over the last three years averages $9,000 a year. Using that figure, rather than the best or worst year, is the usual starting point unless there is evidence the pattern has changed. Seasonal work is treated similarly: South Dakota annualizes income from seasonal employment to get a monthly average.

Bonuses paid as a percentage

A bonus that arrives once a year and whose size isn’t known in advance is hard to fit into a fixed monthly order. Most states simply average past bonuses into income. Connecticut also offers another route. Its guidelines let a court enter a supplemental order to pay a percentage of a future lump sum, such as a bonus, when its amount is indeterminate (Regs. Conn. State Agencies § 46b-215a-2c). The percentage is meant to be generally consistent with the guideline schedule, and support is paid when the bonus is received, so nobody has to return to court each year. If the bonus amount can reasonably be known, the guidelines say it belongs in gross income instead.

Elsewhere, an order that ties extra support to future bonuses depends on the state’s law and, often, on the parents’ agreement. The guide to deviating from the guidelines explains when courts can depart from the formula.

How much overtime changes the guideline amount

Take parents earning $60,000 and $40,000 a year in base pay, with two children who live mainly with Parent B. Suppose Parent A also earns $10,000 a year in overtime. In North Carolina, the guideline amount is $1,056 a month on base pay and $1,156 a month with the overtime counted. In Texas, which counts overtime as wages, it goes from $1,050 to $1,210.

The state’s rule decides which figure applies. If a Wyoming court finds the overtime will not continue, the estimate stays at $1,099 a month; if the overtime counts, it becomes $1,230. Counting half of the overtime, as West Virginia does for established overtime, gives $947 instead of $994. The table shows the effect in every state.

Entering overtime, bonuses and commissions in the calculator

The child support calculator asks for each parent’s gross income and applies the state’s own rules from there. For variable pay:

• Hourly pay with overtime or a second job. The income converter takes an hourly rate, weekly hours, overtime hours and the overtime rate, plus a second job, and gives monthly and yearly gross income. Its button opens the calculator with the yearly figure filled in.
• Bonuses and commissions. Add a yearly average from recent pay records and tax returns, not the most recent payment alone.
• Disputed overtime. Run the estimate twice, once with and once without the overtime, to see the range. The figures above show how much one input can move the result.

The calculator doesn’t decide whether a state’s overtime limits apply to a given job; that depends on facts a court weighs. If a parent stops working overtime to lower support, a court may assign income instead, as explained in imputed income. If overtime or bonuses have changed since an order was made, the modification calculator compares the current order with a new guideline amount.

Every estimate is the guideline amount for the income entered. It isn’t a prediction of an order, and the result links your state’s official worksheet and child support agency.