26years later! hb366: ohio’s new child support guidelines...1/23/2019 5 hb366 child support...

1/23/2019

1

26 Years Later! HB366: Ohio’s New Child

Support Guidelines

Eric W. Johnson, Esq.Sowald, Sowald, Anderson, Hawley & Johnson

Partner

Deborah C. WatkinsSummit County Child Support Enforcement Agency

Chief Assistant Prosecutor

1/23/2019

1

History

• Ohio’s Child Support Guidelines were last updated in 1992

• Economic tables used data from 1980‐1986

• Methodology (Betson Rothbarth 1) carried with it an error that resulted in orders on low income parents that were likely beyond their ability to pay

1/23/2019

2

History (cont.)

• Since 1992, family economics and structures have changed significantly

• Rise in shared parenting/shared time

• Rise in caretaker relative cases

• Changes in prices

• Changes in tax code (resulting in overall increase in relative net income)

History (cont.)

• Long‐standing issues with Guidelines

• Economic tables based on old data (early‐ to mid‐1980’s)

• Self‐support reserve almost non‐existent

• Line 8—adjustment for minor children born to or adopted by either parent and another parent who are living with this parent

• Recent issue with Line 8 due to Tax Code changes

• Line 9—”child support paid” vs. “child support ordered” with regard to credit for other support orders

• Credit for health insurance limited to marginal cost

1/23/2019

3

History (cont.)

• Long‐standing issues with Guidelines (cont.)

• Tables only go out to $150k combined income

• Tables cannot be updated or expanded without legislative action

• Cash medical support is confusing and cumbersome

• With limited ability to deviate cash medical (beyond court’s equitable powers)

• First child to file for support typically gets highest child support order

Time for Change

At the time SB125 and HB366 were introduced, it had been 25 years since the Guidelines were updated

Much discussion and compromise reached over a number of years between multiple stakeholders

Guidelines Councils have recommended updates to the Guidelines every four years since 1992 with no real success

Per statute, the Child Support Guidelines Advisory Council consists of Obligors and Obligees, DR judges and attorneys, CSEA representatives, three members each of the House and Senate, and “other persons interested in the welfare of

children”

1/23/2019

4

Signed June 29, 2018

Major Components Work Together

Significant Updates:

• Economic Tables

• Cash Medical and Health Insurance

• Child Care Credit

• Multiple Families

• Parenting Time

And … tables and worksheet moved from ORC OAC

1/23/2019

5

HB366 Child Support Guidelines

• Modernizes Ohio’s child support guidelines, which haven’t been updated since 1992

• Delayed implementation, effective March 28, 2019

• Affects only new or modified orders after the effective date

• no automatic modifications

• CSEA will not modify order based solely on 10% rule

• Query: What about orders or modifications requested before the effective date but granted after?

Which Worksheet Will the Agency Use?

(Courts likely to use whichever version they chose based on equity and/or arguments of the parties.)

Administrative Establishment Hearing

• Use the date of the hearing on the JFS 07782

• If before 3/28/19, use the existing guidelines

• If on or after 3/28/19, use new guidelines

Review and Adjustment

• Use the date certain on the JFS 07606

• If before 3/28/19, use the existing guidelines

• If on or after 3/28/19, use new guidelines

Objection to a Review and Adjustment

• Administrative objection decision should use same guidelines as the underlying recommendation

1/23/2019

6

•New worksheet and manual

Resources should be used in tandemWill be published in OAC 5101:12

Streamlined Worksheet

Guidelines Manual

Updates to

Schedule

Methodology updated from BR1

to BR4—error corrected regarding

overspending at low income levels

Data updated from 1980s to adjust for current prices and

tax changes

Tables increased to a combined

income of $336,000

Minimum order increased to $960/year

($80/mo.) from $600 per year ($50/mo.)

1/23/2019

7

Gone from the Worksheet(“But” not necessarily forgotten)

• No longer appearing:

• Local Taxes

• Was never automatic statutory deduction, except on worksheet

• “But”: Amount of taxes remains deviation factor (3119.23(H))

• Work‐Related Deductions (union dues, uniform expense, etc.)

• “But”: Work‐related expenses remains excluded from definition of gross income (3119.01(C)(12)(d))

• Insurance/No Insurance calculations

• “But”: there is still cash medical (kind of)

• 2% processing charge

• “But”: remains statutory and will continue to be assessed

First the Easy Stuff

• Income: Everything is the same

• Lines 1 – 7a on current worksheet

• Line 6: Court or agency may not impute income to a person receiving Social Security Disability

• Or if court/agency determines, based on medical documentation, a parent is unable to work

• “Unless unjust or inappropriate and therefore not in the best interests of the child”

• Query: what does this mean for spousal support cases? R.C. 3119.05(H)(2) applies only to “a parent” when the court or agency calculates “child support”

1/23/2019

8

Adjustments to Income(AKA “Above the Line”)

Credit for Other ChildrenLine 9

Multiple Family Calculator created within the worksheet

• Creates consistent credit across all of parent’s child support cases

• Except: this assumes all support orders are calculated based on same number of total children

• Addresses issues with current worksheet lines 8 (other children in obligor’s household) and 9 (child support “paid” for other children)

• No longer tied to tax dependency exemption

• Remember you must still allocate that exemption!

• Calculation within the calculation looks at each parent and his/her total number of children separately to determine the credit

1/23/2019

9

Multiple Family Calculator Line 9

Adjustment for Other Minor Children Not of This Order. (Note: Line 9 is only completed if either parent

has any children outside of this order.) If neither parent has any children outside of this order enter "0"

on Line 9f and proceed to Line 10. For each parent:

a. Enter the total number of children, including children of this order and

other children

b. Enter the number of children subject to this order

c. Line 9a minus Line 9b

d. Using the Basic Child Support Schedule, enter the amount from the

corresponding cell for each parent’s total annual gross income from Line

7 for the number of children on Line 9a

e. Divide the amount on Line 9d by the number on Line 9a

f. Multiply the amount from Line 9e by the number in Line 9c. This is the

adjustment amount for other minor children for each parent. If the

parent has other minor children and the amount is less than “960,” enter

“960”

Health InsuranceLine 10

Rebuttable presumption that the Child Support Obligee will provide the health insurance coverage.

• Cost must be “reasonable”

• < 5% of gross income shown on line 8

• This can be rebutted if:

• Obligor already providing coverage at a reasonable cost

• Obligor can obtain coverage that is reasonable in cost

• Obligor wants to “opt in” to cover even if cost not reasonable

• “Obligee” is a caretaker or Children Services Agency

1/23/2019

10

Health Insurance (cont.)Line 10

Recognizes that the amount paid for insurance is not available income for child

support

Major change from current worksheet

No longer limited to marginal cost

Is treated as a deduction from income rather than as a pro‐rated addition

to/subtraction from the child support obligation

Total out‐of‐pocket cost will be subtracted from the obligated parent(s)’s

income BEFORE going to the tables

Calculating the Support ObligationLines 14 ‐ 18

For the most part, this is what you are used to

• Ohio is still using the “income shares” model

• Combine incomes

• Determine obligation based on number of children

• Divide in proportion to incomes

• But now there’s a twist

• The Self Sufficiency Reserve (shaded table)

1/23/2019

11

Self Sufficiency Reserve

• Current schedule has an SSR (based on 1993 data) but not visible

• New schedule includes an expanded Self‐Sufficiency Reserve that is visible (shaded area)

• Purpose: encourage consistent regular payment of support

Self Sufficiency ReserveLine 18a

• Calculation of support when SSR is in effect:

• Using the obligor parent’s income and number of children subject to the order, determine that parent’s obligation using the table

• Minimum = $960

• If obligation is in the shaded part of the table, compare with percentage share of obligation calculated based on combined incomes

• Child support obligation = lower amount

1/23/2019

12

How the SSR Works

• Example 1: Obligor $31,200; Obligee $60,000; 1 child

• SSR amount for Obligor @ $31,200 = $5,226/yr. ($435.50/mo.) ✘• Combined Annual Obligation @ $91,200 = $11,487

• Obligor (34%): $3,905.58/yr. ($325.46/mo.) ✔• Example 2: Obligor $45,000; Obligee $19,800; 2 children

• SSR amount for Obligor @ $45,000 = $9,366/yr. ($780.50/mo.) ✔• Combined Annual Obligation @ $64,800 = $14,409

• Obligor (69.4%) = $9,999.85/yr. ($833.32/mo.) ✘

Adjustments to the Support Obligation

(AKA “Below the Line”)

1/23/2019

13

Parenting Time—CreditLine 19

1

Pervasive myth that current table accounts for standard parenting time (it does not)

2

Current methodology transfers all support for child into one household

•Does not recognize that variable costs travel with the child

•This leaves non‐custodial parent paying 100% of those variable costs in his/her household

3

10% creditwill be given for Obligors with “standard” parenting time order (90 overnights or more)

•10% of Obligor’s child support obligation will remain in his/her household

•Can be removed by court if parent fails to exercise parenting time

•Practice Tip: Do not draft orders with “local rule” parenting time if you do not expect Obligor parent to exercise at least 90 overnights

4

Credit will be applied by CSEA establishing ormodifying support order

•Agency will only look to the parenting time order; it cannot remove the credit

Parenting Time—DeviationLine 25

1/23/2019

14

Parenting Time—

SummaryParenting time credits/deviations:

< 90 overnights:

no credit

discretionary deviation

no deviation = no findings

90 overnights:

10% credit

discretionary deviation


91‐146 overnights:

10% credit

“shall consider” discretionary deviation


147+ overnights:

10% credit;

“shall consider” discretionary deviation

no deviation = findings!

Court retains discretion to grant deviation for any reason (including extended parenting time)

specified in statute (R.C. 3119.23)

Findings of fact are still required whenever any deviation is granted (R.C. 3119.22)

Child Care ExpensesLine 21

Cap created on allowable credit in worksheet

• Cap uses amounts from daycare centers in JFS Office of Children and Families Market Study

• Per age, per child amounts

• Deviations can be requested if amounts exceed the cap

• Costs associated with caring for a child with specialized physical, psychological, or educational needs (new R.C. 3119.23(P))

• “Child care cost” excludes any reimbursed or subsidized child care cost, including any state or federal tax credit for child care available to the parent or caretaker, whether or not claimed

1/23/2019

15

Child Care Expenses(cont.)

Age of Child Cap on Allowable Expenses

Infant: Newborn through 17 months

$11,464

Toddler: 18 months through 35 months

$10,025

Pre‐school: 3 years through 5 years

$8,600

School‐age: 6 years through 12 years

$7,290

Per child limits determined by this chart

• Will be necessary to input age and childcare cost spent on eachchild

• Low‐income obligor’s share of daycare capped at 50% of allowable costs if obligor is in the “shaded table” (SSR)

• determined by obligor’s income and number of children subject to the order

Cash MedicalLine 23

I’m not dead yet!

1/23/2019

16

Cash MedicalLine 23

Simplified:

• Defined as representing ordinary uninsured medical expenses occurring in BOTH households

• Separates cash medical from health insurance (no longer tied to whether insurance is being provided)

• Cash medical will be part of one total order amount and will be stated as suborder for all orders

• No more toggling between amounts with/without insurance

Cash Medical (cont.)Line 23

Using the National Medical Expenditures Survey to determine ordinary medical expenses

• $388.70 per child (2018), per year, split by parties’ income share

• Updated “periodically” by ODJFS

• Ordered paid in all cases; assignable if children are receiving Medicaid

• Subject to deviation (but be careful!)

• Any amount over the cash medical amount will be split as ordered by the court or agency (e.g., 50/50 or according to the parties’ income shares)

• Practice Tip: Include cash medical amount (per child, if more than one) when drafting agreements. Cash medical amount will be periodically adjusted.

1/23/2019

17

Deviations (R.C. 3119.23)Line 25(a)

• Factors removed:

• Extraordinary obligations for minor children or for handicapped children not subject to the support order (“But” … consolidated with new (A) and (M))

• Obligor obtaining additional employment to support second family (“But” … 3119.05(K) unchanged permits disregard of overtime and additional employment income)

• Relative financial resources and needs of parties (“But” … merged into “disparity in income” factor)

Deviations (R.C. 3119.23)Line 25(a) (cont.)

• Factors added:

• If Obligee’s income < 100% FPL (F)

• Extraordinary work‐related expenses (J)

• Post‐secondary education expenses for parent’s own child/ren (N)

• Costs associated with parents’ compliance with court‐ordered reunification efforts in dependency/abuse/neglect cases (O)

• Extraordinary child care costs for children with specialized needs (P)

• See chart included with materials

1/23/2019

18

Deviations (R.C. 3119.23)Line 25(a) (cont.)

• CSEA “shall” apply an existing deviation to court‐ordered support “provided that the agency can determine the monetary or percentage value of the deviation”

• Codifies existing practice

• Agency still cannot establish or modify a deviation

• Agency will not inquire whether basis of deviation remains the same

• Practice Tips: if you want deviation to survive CSEA review, itemize and specify dollar amount or percentage of your deviation

• Line 25 on proposed worksheet details deviation for parenting time and otherwise

• Do not assume completing Line 25 will preserve your deviation for the CSEA; be clear and detailed in your findings of fact

Other Notable Updates

• Arrearages at termination of support order (“arrears‐only” cases):

• Currently, arrearages must be liquidated at the amount of the current support order (or more)

• That amount is now “rebuttably presumed” to be the correct amount

• Now: court or CSEA may consider evidence and deviate from the presumed amount

• household expenditures, income variables, extraordinary health care issues, and other reasons

1/23/2019

19

Transition to HB366 Guidelines

Affects orders that are new or modified orders after the effective date

• No automatic modifications

1

SETS Guideline Calculator

• New version will be available on and after 3/28/19

• Current version will be available for six months after 3/28/19

2

ODJFS Web Calculator

• New version will go into effect 3/28/19

• Old version will be removed

3

Bonus Tip (just for you)Updated Notice Requirements of R.C. 3121.29

These changes stem from S.B. 70 and become effective February 11, 2019. Locally, this affects Summit County Dom.R.

17.01(A) and changes the notice requirement to read as follows (underline is intended to show the added text; the formatting IS NOT part of the notice itself).

EACH PARTY TO THIS SUPPORT ORDER MUST NOTIFY THE CHILD SUPPORT ENFORCEMENT AGENCY IN WRITING OF HIS OR HER CURRENT MAILING ADDRESS, CURRENT RESIDENCE ADDRESS, CURRENT RESIDENCE TELEPHONE NUMBER, CURRENT DRIVER'S LICENSE NUMBER, AND OF ANY CHANGES IN THAT INFORMATION. EACH PARTY MUST NOTIFY THE AGENCY OF ALL CHANGES UNTIL FURTHER NOTICE FROM THE COURT OR AGENCY, WHICHEVER ISSUED THE SUPPORT ORDER.

IF YOU ARE THE OBLIGOR UNDER A CHILD SUPPORT ORDER AND YOU FAIL TO MAKE THE REQUIRED NOTIFICATIONS, YOU MAY BE FINED UP TO $50 FOR A FIRST OFFENSE, $100 FOR A SECOND OFFENSE, AND $500 FOR EACH SUBSEQUENT OFFENSE. IF YOU ARE AN OBLIGOR OR OBLIGEE UNDER ANY SUPPORT ORDER ISSUED BY A COURT AND YOU WILLFULLY FAIL TO GIVE THE REQUIRED NOTICES, YOU MAY BE FOUND IN CONTEMPT OF COURT AND BE SUBJECTED TO FINES UP TO $1,000 AND IMPRISONMENT FOR NOT MORE THAN 90 DAYS.

IF YOU ARE AN OBLIGOR OR OBLIGEE AND YOU FAIL TO GIVE THE REQUIRED NOTICES TO THE CHILD SUPPORT ENFORCEMENT AGENCY, YOU MAY NOT RECEIVE NOTICE OF THE CHANGES AND REQUESTS TO CHANGE THE CHILD SUPPORT AMOUNT, HEALTH CARE PROVISIONS, OR TERMINATION OF THE CHILD SUPPORT ORDER. IF YOU ARE AN OBLIGOR AND YOU FAIL TO GIVE THE REQUIRED NOTICES, YOU MAY NOT RECEIVE NOTICE OF THE FOLLOWING ENFORCEMENT ACTIONS AGAINST YOU: IMPOSITION OF LIENS AGAINST YOUR PROPERTY; LOSS OF YOUR PROFESSIONAL OR OCCUPATIONAL LICENSE, DRIVER'S LICENSE, OR RECREATIONAL LICENSE; WITHHOLDING FROM YOUR INCOME; ACCESS RESTRICTION AND DEDUCTION FROM YOUR ACCOUNTS IN FINANCIAL INSTITUTIONS; AND ANY OTHER ACTION PERMITTED BY LAW TO OBTAIN MONEY FROM YOU TO SATISFY YOUR SUPPORT OBLIGATION.

1/23/2019

20

What Should You Do Now?

• “Don’t worry, Eric. It’s still two months away. I’m just going to wait until I can start playing around with the updates from my favorite child support software provider!”

• What about:

• Local conversations on impact to standard language and practice; assist court with updates to impacted local rules

• Review old cases, especially where $150K cap applied

• Create dialogue between court and county CSEA

Comparison Scenario – 2 Children

Parent A/Obligor

Gross Income: $45,000 per year

2 additional minor children who reside in the home

• No child support received, married to other parent who resides in the home

Health insurance available, already covering children in the home but not spouse

• Cost: $85 biweekly for family, $45 biweekly for employee only

Parent B/Obligee

Gross Income: $28,800 per year

1 additional minor child who resides in the home

• $4,100 received in current child support over the past 12 months

Health insurance available, but not covering

• Cost: $135 biweekly for family, $35 biweekly for employee only

Child Care Cost

• 4 year old ‐ $9,600 per year

• 7 year old ‐ $3,600 per year (before and after care only)

1/23/2019

21

Multiple Family Calculation

Current worksheet with tax exemption


Current worksheet without tax exemption

1/23/2019

22


HB 366 worksheet calculation

Health Insurance Calculation

Current Worksheet

Parent B/Obligee

• Cost: $135 biweekly (family) ‐ $35 biweekly (single)

• $100 biweekly * 26 = $2,600 annual marginal cost

• $28,800 annual gross income * 5% = $1,440

• Health insurance cost is not “reasonable”!!!

Parent A/Obligor

• Cost: $85 biweekly (family) ‐ $45 biweekly (single)

• $40 biweekly * 26 = $1,040 annual marginal cost

• Divided by the number of children covered (4) = $260 per child

• Multiply by children of this order (2) = $520 HI credit to Parent B

1/23/2019

23

Health Insurance Calculation

HB 366 Worksheet

Child Care Credit

Current Worksheet

1/23/2019

24

Child Care CreditHB 366 Worksheet(*This example is based on a prior version of the new worksheet, which has since been corrected. The result remains accurate.)

Comparison Scenario Outcomes

Current With

Tax Exemptions

Current Without

Tax Exemptions HB 366

Monthly Child Support when Health Insurance is provided = $1,095.85

Monthly Child Support when Health Insurance is NOT provided $1,047.44, PLUSCash Medical Support of $153.75 per monthTOTAL: $1,201.19

Monthly Child Support when Health Insurance is provided = $1,246.39

Monthly Child Support when Health Insurance is NOT provided $1,193.39, PLUSCash Medical Support of $179.17 per monthTOTAL: $1,372.56

Total Monthly Child Support Obligation = $1,059.07

This includes $1,021.33in child support AND $37.98 in cash medical support

1/23/2019

25

Worksheet Scenario #1(1 Child – 3 years)

Richard Smith (Parent A/Obligor)

• Gross Income: $53,000 annually

• Additional Minor Children: 2 that reside in the home

• Health Insurance Available but not currently covering: $100 biweekly for family coverage; $75 biweekly for single coverage

Sally Johnson (Parent B/Obligee)

• Gross income: $31,000 annually

• Additional Minor Children: 1 that resides in the home

• Health Insurance Available but not currently covering: $75 weekly for family coverage, $25 weekly for single coverage

• Child Care Expenses for this child: $175 per week (charged weekly regardless of attendance)

Worksheet Scenario #2(2 children – 10 months & 13 years)

Linda Thompson (Parent A/Obligor)


• Additional Minor Children: 3 that reside outside the home

• No Health Insurance Available

• Parenting Time Order: YES

Patrick Harrison (Parent B/Obligee)



• Health Insurance Available (all children covered): $80 biweekly for family coverage, $30 biweekly for single coverage

• Child Care Expenses: $150 per week for the 10 month old; Pays $50 biweekly to watch and pickup/drop off to/from school for the 13 year old

1/23/2019

26

Worksheet Scenario #3( 1 child – 3 months)

Thomas Berry (Parent A/Obligor)



• Health Insurance Available: $125 biweekly family, $50 biweekly single

• Parenting Time Order: YES

Elizabeth Apple (Parent B/Obligee)


• Additional Minor Children: 0

• Health Insurance Available: $75 biweekly family, $25 biweekly single

• Child Care: $250 per week

Didn’t Get Enough?Want More?

Info available at www.ocda.us except where noted.

SENECA COUNTYDate:Monday, 2/4/2019Location: Camden Falls Reception & Conference CenterAddress: 2460 S SR 231, Tiffin, Ohio 44883Training Time: 10:00am ‐ 12:45pm

ROSS COUNTYDate:Monday, 2/11/2019Location: Ross County Service CenterAddress: 475 Western Avenue, Chillicothe, Ohio 45601 (use middle entrance doors to the building)Training Time: 9:30am‐12:15pm

MIAMI COUNTYDate:Wednesday, 2/27/2019Location: Edison State Community CollegeAddress: 1973 Edison Drive, Piqua, Ohio 45356Training Time: 10:00am‐12:45pm

WAYNE COUNTYDate:Monday, 3/4/2019Location:OSU Wooster Campus/Shisler CenterAddress: 1680 Madison Avenue, Wooster, Ohio 44691Training Time: 1:00pm‐3:45pm

LAKE COUNTYDate: Tuesday, 3/5/2019Location:Quail Hollow ResortAddress: 11080 Concord Hambden Road, Painesville, Ohio 44077Training Time: 9:30am‐12:15pm

FRANKLIN COUNTY – OSBA (www.ohiobar.org)Date: Thursday, 3/14/2019Location:Ohio State Bar AssociationAddress: 1700 Lake Shore Drive, Columbus, Ohio 43204Training Time: 9:00am ‐ 12:15pm*simulcast to locations in Cleveland, Fairfield, and Perrysburg*available as live webcast

ALLEN COUNTYDate: Friday, 3/15/2019Location: Lima Community ChurchAddress: 2945 N Cole Street, Lima, Ohio 45801Training Time: 10:00am‐12:45pm

UNION COUNTYDate:Monday, 3/18/2019Location:Union County JFSAddress: 940 London Avenue, Marysville, Ohio 43040Training Time: 9:30am‐12:15pm

TUSCARAWAS COUNTYDate: Friday, 3/22/2019Location: First United Methodist ChurchAddress: 201 W High Avenue, New Philadelphia, Ohio 44663Training Time: 9:30am‐12:15pm

FRANKLIN COUNTY – OCDADate: Thursday, 3/28/2019Location:Hilton Garden Inn, University AreaAddress: 3232 Olentangy River Road, Columbus, Ohio 43202Training Time: 9:00am – 11:45am

1/23/2019

27

Questions?

• [email protected]

• (330) 643‐8121

Deborah Watkins

• [email protected]

• (614) 464‐1877

Eric Johnson, Esq.

Special Thank You!

The Ohio CSEA Directors Association and Amy Rohrenbeck, Executive Director

The Franklin County Child Support Enforcement Agency and Susan A. Brown, Director

26years later! hb366: ohio’s new child support guidelines...1/23/2019 5 hb366 child support...

Documents