Understanding Military Pay. Child Support in Military Families. Agenda 11/4/2016

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1 Child Support in Military Families Steven P. Shewmaker Patricia D. Shewmaker Shewmaker & Shewmaker, LLC Agenda Understanding Military Pay How to read a Leave and Earnings Statement Calculating child support in Military Families Interim Family Support Understanding Military Pay 1

2 Overview of the Military Five Branches Air Force Army Coast Guard Marines Navy Reserve Component vs. Active Component Federal Reserve National Guard Active Guard and Reserve (AGR) Overview of the Military Don t forget: Public Health Service Commissioned Corps National Oceanic and Atmospheric Administration Rank and Grade Officers ( O scale, O-1 through O-10) Warrant Officers (WO1 CW5) Non Commissioned Officers ( E scale, E-5 through E-9) Enlisted Service Members (E-1 through E-4) 2

3 Military Pay and Allowances Base Pay Based on rank and years of service Pay tables available at Annual Pay Adjustment Goes into effect January 1 st By Act of Congress Linked to Employment Cost Index (ECI) % % % % % % % % Base Pay Active Duty Base Pay Active Duty 3

4 Base Pay Reserves Basic Allowance for Housing (BAH) Nontaxable allowance for housing Dependent / Without Dependent Rate One rate for with dependents regardless of number of dependents Variable by rank and zip code Basic Allowance for Subsistence (BAS) Nontaxable allowance for food Intended to offset the cost for the servicemember s meals not the family s Adjusted based on the USDA food cost index Current 2016 rates: Officer: $253.63/month Enlisted: $368.29/month 4

5 Special and Incentive Pays Based on specific qualifications or events Examples: combat pay, jump pay, professional pay Allowances Based on specific needs Basic Allowance for Housing (BAH) Basic Allowance for Subsistence (BAS) Clothing allowance Family separation allowance Military Bonuses Initial enlistment bonus Army Up to $40,000 Navy Up to $40,000 Air Force Up to $17,000 Marine Corps Up to $15,000 Selective re-enlistment bonuses Army Up to $40,000 Navy Up to $90,000 Air Force Up to $90,000 Marine Corps Up to $90,000 The Army pays critical skills retention bonuses of up to $150,000 for senior personnel in priority skills, such as Special Forces. Includes up to $25,000 as a kicker for some high-demand specialties. 5

6 Military pay while deployed Tax exempt up to the pay of the highest enlisted soldier in theater (usually a Command Sergeant Major (E-9) with over 20 years) Additional pays: Family separation allowance - $250/month Combat or Hazardous Duty Pay - $250/month How to Read a Leave and Earnings Statement 6

7 Calculating Child Support for Military Families Gross Income for Child Support? Active Duty Base pay BAS BAH, non variable rate Reserve Component members Civilian gross monthly pay Reserve pay (monthly + Annual Training)/12 O.C.G.A TITLE 19. DOMESTIC RELATIONS CHAPTER 6. ALIMONY AND CHILD SUPPORT ARTICLE 1. GENERAL PROVISIONS (f) Gross income. (1) Inclusion to gross income. (A) Attributable income. Gross income of each parent shall be determined in the process of setting the presumptive amount of child support and shall include all income from any source, before deductions for taxes and other deductions such as preexisting orders for child support and credits for other qualified children, whether earned or unearned, and includes, but is not limited to, the following: (B) Self employment (C) Fringe benefits (D) Variable income (E) Military compensation and allowance 7

8 (E) Military compensation and allowances. Income for a parent who is an active duty member of the regular or reserve component of the United States armed forces, the United States Coast Guard, the merchant marine of the United States, the commissioned corps of the Public Health Service or the National Oceanic and Atmospheric Administration, the National Guard, or the Air National Guard shall include: (i) Base pay; (ii) Drill pay; (iii) Basic allowance for subsistence, whether paid directly to the parent or received in-kind; and (iv) Basic allowance for housing, whether paid directly to the parent or received in-kind, determined at the parent's pay grade at the without dependent rate, but shall include only so much of the allowance that is not attributable to area variable housing costs. Except as determined by the court or jury, special pay or incentive pay, allowances for clothing or family separation, and reimbursed expenses related to the parent assignment to a high cost of living location shall not be considered income for the purpose of determining gross income. (D) Variable income. Variable income such as commissions, bonuses, overtime pay, military bonuses, and dividends shall be averaged by the court or the jury over a reasonable period of time consistent with the circumstances of the case and added to a parent's fixed salary or wages to determine gross income. When income is received on an irregular, nonrecurring, or one-time basis, the court or the jury may, but is not required to, average or prorate the income over a reasonable specified period of time or require the parent to pay as a one-time support amount a percentage of his or her nonrecurring income, taking into consideration the percentage of recurring income of that parent. 8

9 Medical Insurance Active Duty No cost for TriCare Standard Premium for TriCare Prime - $47.10/month for family Reserve Component TriCare Reserve Select - $210.83/month for family TriCare Dental Interim Family Support Interim Family Support Four of the Five Branches have regulations regarding interim family support requirements: Army Marines Navy Coast Guard Requirements: Service member on active duty (not reserve) No existing court order No existing consent agreement 9

10 Interim Family Support, cont. Army AR (available online) Pro rata share of the BAH with Dependents Punitive under UCMJ Commander has discretion to adjust 1 1 Just for fun, you can google usapa army and access almost all U.S. Army regulations (e.g. Interrogation, Family Law, Uniform Code of Military Justice) Interim Family Support, cont. Marines Marine Corps Order P a (available online) Fixed rate or ½ of BAH (whichever is greater) Punitive under UCMJ Interim Family Support, cont. Navy Naval MILPERSMAN (available online) Fixed rate 10

11 Interim Family Support, cont. Coast Guard Coast Guard Personnel Manual (available online) 11

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