Ottawa Divorce .com Forums


User CP

New posts

Advertising

  Ottawa Divorce .com Forums > Main Category > Financial Issues

Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

Closed Thread
 
Thread Tools
  #1  
Old 02-16-2010, 05:40 PM
#1StepMom #1StepMom is offline
Senior Member
 
Join Date: Oct 2008
Location: Toronto
Posts: 885
#1StepMom is on a distinguished road
Default Are Expense Allowances Considered Income?

I know I could eventually find the answer by digging and searching the child support guidelines... but I thought it may be easier to simply ask.

Are company expense allowances considered income?

For example, my husband makes $XX,XXX salary ($X,XXX monthly) at his new job, but the company pays him a monthy allowance of $YYY for his cell phone and car use (gas and parking) as both are requirements of his employment position. (Much like if he were to have a company car and a company cell phone, but a cheaper alternative.)

His "regular pay" AND his allowances are depicted on his pay stubs.

Does this mean that his actual income is his pay plus allowances combined?

Or is his income just his regular pay?

Any clarification would be truly appreciated. Thanks!

Last edited by #1StepMom; 02-16-2010 at 06:27 PM.
  #2  
Old 02-16-2010, 06:40 PM
dinkyface dinkyface is offline
Senior Member
 
Join Date: May 2009
Posts: 2,476
dinkyface will become famous soon enough
Default

Do they show up on his T4 as a taxable benefit?
  #3  
Old 02-16-2010, 06:51 PM
#1StepMom #1StepMom is offline
Senior Member
 
Join Date: Oct 2008
Location: Toronto
Posts: 885
#1StepMom is on a distinguished road
Default

Quote:
Originally Posted by dinkyface View Post
Do they show up on his T4 as a taxable benefit?
I don't know. He only started working for this company this month and just got his first paycheque.

We just don't know what to base child support on.
  #4  
Old 02-16-2010, 07:41 PM
dinkyface dinkyface is offline
Senior Member
 
Join Date: May 2009
Posts: 2,476
dinkyface will become famous soon enough
Default

If a trucker makes $100k, but has to spend $10k on hotel/meals on the road - these are NECESSARY for him to do his job - but his employer does NOT compensate him for, then he ends up with $90k before taxes, and this is what CS is based on. This is supported by case law and the step-by-step guidelines.

If a salesman makes $100K (which includes $10k expense compensation), and spends $10k on gas/cell/computer - these are NECESSARY to do his job, then he ends up with $90k before taxes. By analogy, I believe that CS should be based on the $90k (i.e. total pay from employer, minus expenses).

Makes sense to me, but have not looked for cases or official rules/documentation.

Note that if the salesman's expense compensation is a taxable benefit, he is worse off than the trucker....

Last edited by dinkyface; 02-16-2010 at 07:48 PM.
  #5  
Old 02-16-2010, 08:22 PM
#1StepMom #1StepMom is offline
Senior Member
 
Join Date: Oct 2008
Location: Toronto
Posts: 885
#1StepMom is on a distinguished road
Default

Thanks Dink!

But how would you know if it's taxable?

For example... my husband's paystub indicates the following:

EARNINGS:
Cell Phone $XX.XX
Parking $XX.XX
Regular $X,XXX.XX
Txb Auto $XXX.XX

GROSS PAY $X,XXX.XX (Total of above 4 combined)

Then there are the typical deductions (i.e. Fed Tax, Govt Pens, EI Cont).

And the Net Pay is the Gross Pay minus Deductions.

In my husband's employment contract, it specifies that he will have a base salary of $XX,XXX plus cell phone, parking, and car allowances.

So, are the allowances considered "total income" in this case?
  #6  
Old 02-16-2010, 09:48 PM
dinkyface dinkyface is offline
Senior Member
 
Join Date: May 2009
Posts: 2,476
dinkyface will become famous soon enough
Default

Ask the employer!

The 'Txb' code might be an indicator that the Auto expense is a 'taxable benefit' (implying that the others are not).
  #7  
Old 02-16-2010, 09:56 PM
dadtotheend's Avatar
dadtotheend dadtotheend is offline
Senior Member
 
Join Date: Jul 2007
Location: Toronto
Posts: 3,644
dadtotheend will become famous soon enoughdadtotheend will become famous soon enough
Default

Quote:
Originally Posted by #1StepMom View Post
I know I could eventually find the answer by digging and searching the child support guidelines... but I thought it may be easier to simply ask.
Evidently.
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When an asset becomes income Justoveramillion Financial Issues 6 10-19-2011 06:45 AM
Ex is Military stillstrong Financial Issues 22 06-03-2011 06:31 PM
What counts? workingthruit Financial Issues 3 08-17-2007 11:56 AM
child support and EI beltane Financial Issues 3 06-07-2006 09:28 PM
Impact of Stocks on Child Support peter8688 Divorce & Family Law 4 01-04-2006 07:51 PM


All times are GMT -4. The time now is 05:21 AM.