Surplus Income: One Person in the Household That Pays Support for Children

The following is an example of how surplus income calculation would look when there is only one person in the household and that person pays support for children.

David is divorced and is required to pay $650 a month in child support to his ex-wife. He makes the payments himself (i.e. his wages are not being garnisheed). His take-home pay is $500 a week.

David’s surplus income calculation looks like this:

Total household income: 4 x $500 =	$ 2,000
Less child support payments	– 650
Net income for surplus purposes	$ 1,350
Less the government threshold	– 1,870
Income over the threshold	NIL
Surplus income rate (50%)	x 0.5
Surplus income to pay	$ 0

 

In this example, no surplus income payment is required because after David pays his support his income falls below the government’s threshold.

If David’s paycheque was being garnisheed (instead of David making the payments himself) then the surplus income calculation would look like this:

Total household income: 4 x $500 =	$ 2,000
Less the government threshold	– 1,870
Income over the threshold	130
Surplus income rate (50%)	x 0.5
Surplus income to pay	$ 65

 

The support payments would not be deducted because they have already been taken off his paycheque.