IS OVERTIME OR BONUS PAY CONSIDERED FOR TEXAS CHILD SUPPORT?
Whether it’s by way of a divorce filing, paternity case, or stand-alone child custody proceeding, parents (and courts) want to ensure the best interests of children will be met, and that they’ll have the needed financial support to make that possible.
While calculating child support is a matter which can vary from case to case, it is viewed as an undeniable obligation for any parent – meaning a parent owes child support regardless of whether they see their children or not.
Under the Texas Family Code, there’s a formula used to determine the amount of support a parent is obligated to pay for their child, and it calculates support amounts based on more than employment income alone.
Net Income Calculation
Generally, the child support formula is a Net Income Calculation which computes the average net resources of the parent paying support by subtracting Social Security taxes, income tax (federal), union fees, health insurance, and other related liabilities from gross income.
Under Texas law, gross income includes not only salary but also bonus and overtime pay. It generally includes income from:
• Salary, overtime & bonus pay;
• Commissions/cash tips
•Interest or dividends
• Rental/investment income
• Royalties/oil and gas mineral interests
• Trust or retirement income
• Gifts, prizes, and any spousal support from a previous marriage