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Are Bonuses Part of Gross Income

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  • 12-02-2008, 10:24 AM
    baby7
    Are Bonuses Part of Gross Income
    My question involves child support in the State of: Oklahoma

    My soon to be ex works in the auto industry, so he gets base salary plus bonus which I take that to mean commission.

    My question is: Will the child support be based on year to date gross which includes bonus or just base salary? The difference is about 50k.

    Thank you.
  • 12-02-2008, 11:42 AM
    lookingfortruth7
    Re: Is Bonuses Considered Gross
    Is it a bonus that he is guaranteed every single year? The automotive jobs are tanking right now and the salary workers are always the first to be let go. Unless he is a major high up executive I really doubt that he is going to receive the same amount every year or even a bonus at all. If he works for the big 3, I would say he isn't going to be getting it because they are looking for a bail out and laying off workers so I doubt they will be giving a lower salary 50k a year extra at this point, he is lucky to have a job most likely.

    I guess you can always try for a modification, but be aware that if he loses his job he can come right back at you to lower it because he didn't ask to lose his job it was forced on him.
  • 12-02-2008, 11:52 AM
    gigirle
    Re: Is Bonuses Considered Gross
    Word is that the hourly salaried employees won't take the hit. It's the management/salaried employees that won't get the bonus. I doubt the union will allow any hourly worker to take much of a hit and will fight what they can. The hourly guy has the union to protect him. If he works for Ford, he's in better shape than the other two. IF he works for one that eventaully goes into bankruptcy, don't expect any modification to go your way.

    If your ex got any bonus, take him back for a modification. Let the court decide what is fair/legal.
  • 12-02-2008, 11:55 AM
    lookingfortruth7
    Re: Is Bonuses Considered Gross
    She said that he is a salary worker and that the bonus is commission, he is not a blue collar on the assembly line worker so he won't get it then if what you say is correct.

    The big 3 only give around $700 after taxes for sign on bonus, and $600 for christmas bonus so I am not sure if $1300 a year more will matter, no line worker gets a $50k bonus.

    Quote:

    Quoting gigirle
    View Post
    Word is that the hourly salaried employees won't take the hit. It's the management/salaried employees that won't get the bonus. I doubt the union will allow any hourly worker to take much of a hit and will fight what they can. The hourly guy has the union to protect him. If he works for Ford, he's in better shape than the other two. IF he works for one that eventaully goes into bankruptcy, don't expect any modification to go your way.

    If your ex got any bonus, take him back for a modification. Let the court decide what is fair/legal.

  • 12-02-2008, 11:58 AM
    aaron
    Re: Is Bonuses Considered Gross
    See 43 O.S. 118B.
    Quote:

    Quoting 43 O.S. 118B - Gross Income, Inclusions and Exclusions - Imputed Income - Income from Self-Employment - Social Security Title II Benefits
    A. As used in this act:
    1. "Gross income" includes earned and passive income from any source, except as excluded in this section;

    2. "Earned income" is defined as income received from labor or the sale of goods or services and includes, but is not limited to, income from:
    a. salaries,

    b. wages,

    c. tips

    d. commissions,

    e. bonuses,

    f. severance pay,and

    g. military pay, including hostile fire or imminent danger pay, combat pay, family separation pay, or hardship duty location pay; and
    3. "Passive income" is defined as all other income and includes, but is not limited to, income from:
    a. dividends,

    b. pensions,

    c. rent,

    d. interest income,

    e. trust income,

    f. support alimony being received from someone other than the other parent in this case,

    g. annuities,

    h. social security benefits,

    i. workers' compensation benefits,

    j. unemployment insurance benefits,

    k. disability insurance benefits,

    l. gifts,

    m. prizes,

    n. gambling winnings,

    o. lottery winnings, and

    p. royalties.
    B. Income specifically excluded is:
    1. Actual child support received for children not before the court;

    2. Adoption Assistance subsidy paid by the Department of Human Services;

    3. Benefits received from means-tested public assistance programs including, but not limited to:
    a. Temporary Assistance for Needy Families (TANF),

    b. Supplemental Security Income (SSI),

    c. Food Stamps, and

    d. General Assistance and State Supplemental Payments for Aged, Blind and the Disabled;
    4. The income of the child from any source, including, but not limited to, trust income and social security benefits drawn on the disability of the child; and

    5. Payments received by the parent for the care of foster children.
    C.
    1. For purposes of computing gross income of the parents, gross income shall include for each parent whichever is the most equitable of:
    a. all actual monthly income described in this section, plus such overtime and supplemental income as the court deems equitable,

    b. the average of the gross monthly income for the time actually employed during the previous three (3) years,

    c. the minimum wage paid for a forty-hour week, or

    d. gross monthly income imputed as set forth in subsection D of this section.
    2. If a parent is permanently physically or mentally incapacitated, the child support obligation shall be computed on the basis of actual monthly gross income.
    * * *

  • 12-02-2008, 01:41 PM
    baby7
    Re: Are Bonuses Part of Gross Income
    Thank you for all the replies.

    He is in upper management and doesn't work for any of the big 3. He works for a foreign car dealership, I think its Japanese.
  • 12-02-2008, 07:41 PM
    lookingfortruth7
    Re: Are Bonuses Part of Gross Income
    Working for a dealership is always iffy even for management because no one is buying cars, therefore there is less bonuses to give out. They can base it on the bonus he receives, most likely on the previous year. If the fathers income goes down a huge amount by not receiving bonuses for a period of time I am sure he can go and ask for a modification if it is his time to do so, I understand that most states let you request a modification/review every 2-3 years or so. This is a question that you should be asking who ever is going to do your support order. The safe bet is to calculate the support as if you are not getting the extra and if they calculate it in than it is a nice bonus to you. :p I just think hoping that he makes $50k more a year with this horrible economy is going to be a let down in the end.
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