DCF 150.02(13)(a)7.7. Voluntary deferred compensation, employee contributions to any employee benefit plan or profit–sharing, and employee contributions to any pension or retirement account whether or not the account provides for tax deferral or avoidance. DCF 150.02(13)(a)8.8. Veterans disability compensation benefits and military allowances, including basic allowances for subsistence and housing, but excluding amounts attributable to area variable housing costs. DCF 150.02(13)(a)9.9. Undistributed income of a corporation, including a closely–held corporation, or any partnership, including a limited or limited liability partnership, in which the parent has an ownership interest sufficient to individually exercise control or to access the earnings of the business, unless the income included is an asset under s. DCF 150.03 (4). In this paragraph: DCF 150.02(13)(a)9.a.a. “Undistributed income” means federal taxable income of the closely held corporation, partnership, or other entity plus depreciation claimed on the entity’s federal income tax return less a reasonable allowance for economic depreciation. DCF 150.02(13)(a)9.b.b. A “reasonable allowance for economic depreciation” means the amount of depreciation on assets computed using the straight line method and useful lives as determined under federal income tax laws and regulations. DCF 150.02 NoteNote: Income considered under this subsection is subject to the adjustments under s. DCF 150.03 (2). DCF 150.02(13)(a)10.10. All other income, whether taxable or not, except that gross income does not include any of the following: DCF 150.02(13)(a)10.d.d. Public assistance benefits under ch. 49, Stats., except that child care subsidy payments under s. 49.155, Stats., shall be considered income to a child care provider. DCF 150.02(13)(b)(b) This subsection defines gross income used in establishing a child support order under this chapter and may not be used to limit income withholding under s. 767.75, Stats., or the assignment of worker’s compensation benefits for child support under s. 102.27 (2), Stats. DCF 150.02 NoteNote: This paragraph clarifies that although the portion of worker’s compensation awards not intended to replace income is excluded from gross income in establishing a child support order, the full worker’s compensation benefit is assignable for the collection of child support.
DCF 150.02(14)(14) “Income imputed based on earning capacity” means the amount the court determines under s. DCF 150.03 (3) if the parent has no other income or the difference between the amount the court determines under s. DCF 150.03 (3) and the parent’s gross income or income modified for business expenses if the parent has actual income. DCF 150.02(15)(15) “Income imputed from assets” means the amount of income ascribed to assets that are unproductive and to which income has been diverted to avoid paying child support or from which income is necessary to maintain the child or children at the standard of living they would have if they were living with both parents, and that exceeds the actual income from the assets. DCF 150.02(16)(16) “Income modified for business expenses” means the amount of income after adding wages paid to dependent household members, adding undistributed income that the court determines is not reasonably necessary for the growth of the business, and subtracting business expenses that the court determines are reasonably necessary for the production of that income or operation of the business and that may differ from the determination of allowable business expenses for tax purposes. DCF 150.02(17)(17) “Intact family” means a family in which the child or children and the payer reside in the same household and the payer shares the payer’s income directly with the child or children and has a legal obligation to support the child or children. DCF 150.02(18)(18) “Legal obligation for child support” has the meaning prescribed for “child support” or “child support obligation” in sub. (5). DCF 150.02(19)(19) “Low-income payer” means a payer for whom the court uses the monthly support amount provided in the schedule in Appendix C based on the court’s determination that the payer’s total economic circumstances limit the payer’s ability to pay support at the level provided under s. DCF 150.035 and the payer’s income available for child support is at a level set forth in the schedule in Appendix C. DCF 150.02(20)(20) “Marital child” means a child determined to be a marital child under s. 767.803, Stats. DCF 150.02(21)(21) “Monthly income available for child support” means the monthly income at which the child support obligation is determined, which is calculated by adding the parent’s annual gross income or, if applicable, the parent’s annual income modified for business expenses; the parent’s annual income imputed based on earning capacity; the parent’s annual income imputed when no or little information is known; and the parent’s annual income imputed from assets, and dividing that total by 12. DCF 150.02(22)(22) “Parent” means the natural or adoptive parent of the child. DCF 150.02(23)(23) “Payee” means the parent who is the recipient of child support as a result of a court order. DCF 150.02(24)(24) “Payer” means the parent who incurs a legal obligation for child support as a result of a court order. DCF 150.02(25)(25) “Serial-family parent” means a parent with an existing legal obligation for child support who incurs an additional legal obligation for child support in a subsequent family as a result of a court order. DCF 150.02(25m)(25m) “Shared-placement parent” means a parent who has a court-ordered period of placement of at least 25% and is ordered by the court to assume the child’s basic support costs in proportion to the time that the parent has placement of the child. DCF 150.02(26)(26) “Shared-placement payer” means the shared-placement parent who is determined to owe a greater support amount than the other parent under the calculation in s. DCF 150.035 (1). DCF 150.02(27)(27) “Split-placement payer” means a payer who has 2 or more children and who has physical placement of one or more but not all of the children. DCF 150.02(29)(29) “Variable costs” means the reasonable costs above basic support costs incurred by or on behalf of a child, including but not limited to, the cost of child care, tuition, a child’s special needs, and other activities that involve substantial cost. DCF 150.02(30)(30) “Worksheet” means the department’s percentage standard worksheet, printed as Appendix B to this chapter. DCF 150.02 HistoryHistory: Cr. Register, January, 1987, No. 373, eff. 2-1-87; r. (2) (b) to (d), r. and recr. (12) to (14), renum. (26) to (28) to be (27) to (29) and am. (29), cr. (26), Register, August, 1987, No. 380, eff. 9-1-87; r. and recr., Register, February, 1995, No. 470, eff. 3-1-95; CR 03-022: am. (2), r. and recr. (3), r. (4), renum. (5) through (10) to be (4) through (9), am. (8), cr. (10), r. and recr. (13), (20), (25), (28) and (30), renum. (14), (16), (17) and (18) to be (16), (17), (18) and (20), am. (16) and (18), cr. (14), am. (15), renum. (19), (22), (23) and (24) to be (22), (23), (24) and (25), cr. (19), r. and recr. (21), renum. (26) and (27) to be (27) and (28) and am., cr. (26), r. and recr. (29), renum. (31) to be (30) Register December 2003 No. 576, eff. 1-1-04; corrections in (11) and (13) (b) made under s. 13.93 (2m) (b) 7., Stats., Register June 2007 No. 618; corrections in (8), (13) (a) 9., (19), (26), and (28) made under s. 13.92 (4) (b) 6. and 7., Stats., Register November 2008 No. 635; EmR0821: emerg. cr. (12m), eff. 6-27-08; CR 08-066: cr. (12m) Register December 2008 No. 636, eff. 1-1-09; CR 09-036: am. (25) and (26), cr. (25m) Register November 2009 No. 647, eff. 1-1-10; CR 16-075: am. (10), (13) 7., 8. Register June 2018 No. 750, eff. 7-1-18; 2021 Wis. Act 35: cr. (9m), am. (19), (26), r. (28) Register June 2021 No. 786, eff. 12-1-21; correction in (26) made under s. 35.17, Stats., Register December 2021 No. 792; 2021 Wis. Act 160: am. (13) (a) 8. Register March 2022 No. 795, eff. 4-1-22; CR 23-011: r. (10), r. and recr. (14), cr. (15m), am. (17), (19), (21) Register December 2023 No. 816 eff. 1-1-24. DCF 150.03(1)(1) Determining income available for child support. The court shall determine a parent’s monthly income available for child support by adding together the parent’s annual gross income or, if applicable, the parent’s annual income modified for business expenses; the parent’s annual income imputed based on earning capacity; the parent’s annual income imputed when no or little information is known; and the parent’s annual income imputed from assets, and dividing that total by 12. This may be done by completing the worksheet in Appendix B, although use of the worksheet for this purpose is not required. DCF 150.03(2)(2) Determining income modified for business expenses. In determining a parent’s monthly income available for child support under sub. (1), the court may adjust a parent’s gross income as follows: DCF 150.03(2)(b)(b) Adding undistributed income that meets the criteria in s. DCF 150.02 (13) (a) 9. and that the court determines is not reasonably necessary for the growth of the business. The parent shall have the burden of proof to show that any undistributed income is reasonably necessary for the growth of the business. DCF 150.03(2)(c)(c) Reducing gross income by the business expenses that the court determines are reasonably necessary for the production of that income or operation of the business and that may differ from the determination of allowable business expenses for tax purposes. DCF 150.03(3)(3) Income imputed based on earning capacity. If a parent is voluntarily unemployed or underemployed without good cause, the court may impute income to the parent based on the parent’s earning capacity. A parent’s incarceration may not be treated as voluntary unemployment for purposes of establishing or modifying a child support order. In determining a parent’s earning capacity, the court may consider the following factors: DCF 150.03(3)(b)(b) The parent’s earnings during previous periods of employment. DCF 150.03(3)(g)(g) Employment barriers the parent faces, such as homelessness, lack of a driver’s license, alcohol or other drug dependence, or immigration status. DCF 150.03(3)(i)(i) If the parent is unemployed, whether the unemployment is due to the parent’s job-related misconduct. DCF 150.03(3)(j)(j) If the parent is the caretaker of a child common to the parties, the relationship between the parent’s earning capacity and the child care costs that would be incurred if the parent obtained paid employment. DCF 150.03(3)(k)(k) If the parent is the caretaker of a child common to the parties who has unusual emotional or physical needs, whether the child requires that parent’s presence in the home. DCF 150.03(3)(L)(L) The parent’s participation in reasonable career or occupational training to establish basic skills or enhance earning capacity. DCF 150.03(3m)(3m) Income imputed when no or little information is known. If a parent’s income is unknown and evidence is presented that due diligence has been exercised to ascertain information on the parent’s actual income or ability to earn and no or little information is known, the court may impute the income to the parent that an individual would earn by working 10 to 35 hours per week for the higher of the federal minimum hourly wage under 29 USC 206 (a) (1) or the state minimum hourly wage under s. 104.035 (1) (a), Stats. The court may use any factors in sub. (3), if known, to determine the number of hours to impute. DCF 150.03(4)(a)(a) The court may impute a reasonable earning potential to a parent’s assets if the court finds both of the following: DCF 150.03(4)(a)1.1. The parent has ownership and control over any real or personal property, including but not limited to, life insurance, cash and deposit accounts, stocks and bonds, business interests, net proceeds resulting from worker’s compensation or other personal injury awards not intended to replace income, and cash and corporate income in a corporation in which the parent has an ownership interest sufficient to individually exercise control and the cash or corporate income is not included as gross income under s. DCF 150.02 (13). DCF 150.03(4)(a)2.2. The parent’s assets are underproductive and at least one of the following applies: DCF 150.03(4)(a)2.b.b. Income from the parent’s assets is necessary to maintain the child or children at the standard of living they would have had if they were living with both parents. DCF 150.03(4)(b)(b) The court shall impute income to assets by multiplying the total net value of the assets by the current 6-month treasury bill rate or any other rate that the court determines is reasonable and subtracting the actual income from the assets that was included as gross income under s. DCF 150.02 (13). DCF 150.03(5)(a)(a) The court may consider a child’s benefit under 42 USC 402 (d) based on a parent’s entitlement to federal disability or old-age insurance benefits under 42 USC 401 to 433 and adjust a payer’s child support obligation by subtracting the amount of the child’s benefit received by the payee. In no case may this adjustment require the payee to reimburse the payer for any portion of the child’s benefit. If the payer is receiving the child’s benefit, the support amount is either the designated percentage applied to the payer’s income or the amount of the child’s benefit, whichever is greater. DCF 150.03(5)(b)(b) If the shared-placement guidelines under s. DCF 150.035 (1) apply, the child’s benefit is split between the parents in proportion to the amount of time the child spends with each parent. Add the proportion of the child’s benefit that represents the proportion of time the child spends with the parent not receiving the benefit to the support obligation of the parent who is receiving the child’s benefit. Support shall be determined as follows: DCF 150.03(5)(b)1.1. Determine each parent’s monthly income available for child support under sub. (1). If a parent has one or more previous child support obligations, determine the parent’s monthly income available for child support adjusted for the previous obligations as provided in s. DCF 150.04 (1). Include the parent’s federal disability or old age insurance benefits under 42 USC 401 to 433 in that parent’s income, but do not include the child’s benefit under 42 USC 402 (d) in either parent’s income. DCF 150.03(5)(b)2.2. Multiply each parent’s monthly income available for child support by the designated percentage. DCF 150.03(5)(b)4.4. Multiply the amount determined for each parent in subd. 3. by the proportion of time that the child spends with the other parent. DCF 150.03(5)(b)5.5. Multiply the amount of the child’s benefit by the proportion of the time the child spends with the parent who is not receiving the child’s benefit. DCF 150.03(5)(b)6.6. Add the amount in subd. 5. to the child support obligation calculated in subd. 4. for the parent who is receiving the child’s benefit. DCF 150.03(5)(b)7.7. Offset the resulting amounts against each other. The parent with the greater child support obligation is the shared-placement payer. The shared-placement payer shall pay either the lesser of the amount determined in this subsection or the amount determined using the designated percentage. DCF 150.03 NoteNote: The following example shows how the child support obligation is determined for a shared-placement parent who receives a child’s benefit under 42 USC 402 (d): DCF 150.03 NoteAssumptions:
DCF 150.03 NoteTwo children
DCF 150.03 NoteParent A has placement 146 days or 40% of the year.
DCF 150.03 NoteParent B has placement 219 days or 60% of the year.
DCF 150.03 NoteParent A’s current monthly income available for support is $2000.
DCF 150.03 NoteParent B’s current monthly income available for support is $2500
DCF 150.03 NoteParent B receives a $1000 per month child’s benefit under 42 USC 402(d) based on Parent A’s entitlement to federal disability or old-age insurance benefits under 42 USC 401 to 433. DCF 150.03 NoteCalculation:
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Department of Children and Families (DCF)
Chs. DCF 101-199; Family and Economic Security
administrativecode/DCF 150.02(24)
administrativecode/DCF 150.02(24)
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