Are Commissions and Bonuses Income for Child Support Calculations?

Yes. If you earn overtime, commissions, or bonuses at your job, those funds will be considered income for the purpose of calculating child support.

Family Code section 4058 provides that "annual gross income ... means income from whatever source derived" and subsection (1) identifies bonuses and the Court is allowed to make a Smith/Ostler Order for support based on Overtime, bonuses or commissions received, income or earnings over set amount, and other specific income sources.

Sometimes the Ostler/Smith amount is less than what you would have been ordered to pay if the court used your last years tax return to calculate your support payments, so it’s not always something you should fear.

Typically, the court will use a percentage-based model.  For example: Payor shall pay 10% of any gross income earned over $10,000 per month as additional child support.

Or, if you use the Dissomaster software, the Court could order the following:

Payor shall pay additional child and/or spousal support based on the attached Table for income earned over $125,000 per year.

The case law that permits these calculations is based on Marriage of Ostler & Smith (1990) 223 Cal.App.3d 33, Marriage of Mosley (2008) 165 Cal.App.4th 1375, and Marriage of Tong & Samson (2011) 197 Cal.App.4th 23.

See below for a typical Ostler Smith Bonus Table. If you have more questions about Ostler Smith Orders, you can contact me at Amanda@gordonfamilylaw.com for more information.