How Parental Income for Determining Child Support (PICS) is Calculated in Minnesota

Understanding the PICS Model in Minnesota

Whether you live in Minneapolis, St. Paul, or Rochester, the state of Minnesota uses a specific financial formula to determine child support. This formula is called Parental Income for Determining Child Support, commonly referred to as PICS. Governed by Minn. Stat. § 518A.34, the PICS model takes the gross income of both parents, combines it, and then calculates the basic support obligation based on statutory guidelines. This article focuses strictly on the financial formulas and income calculations used by the Hennepin County District Court, Minneapolis, the Ramsey County District Court, St. Paul, and other state courts, rather than custody or parenting time issues.

The goal of PICS is to ensure that a child receives the same proportion of parental income that they would have received if the parents lived together. You can initiate the financial disclosure process by filing Form FAM102, Minnesota, Judicial Branch, Financial Affidavit.

Step-by-Step: Calculating Gross Income for W-2 Employees

The foundation of the PICS calculation is determining your gross income. Under Minn. Stat. § 518A.29, gross income is broadly defined before any taxes are taken out. The landmark case Haefele v. Haefele, 837 N.W.2d 703 (MN Supreme Court 2013) established important precedents regarding what constitutes income for child support purposes.

Step 1: Identifying All Sources of Earned Income

For standard W-2 employees, gross income includes your base salary, hourly wages, overtime pay, commissions, and tips. Even if you do not regularly work overtime, if there is a consistent history of overtime pay, the court will likely include it in your gross income calculation. You must provide recent pay stubs and your latest tax returns to prove these numbers.

Step 2: Including Bonuses and Allowances

Bonuses, whether they are holiday bonuses, performance bonuses, or sign-on bonuses, are generally factored into your gross income. If your bonus fluctuates yearly, the court might average your bonuses over the past two to three years. Additionally, if you receive employer-paid allowances, such as a per diem, housing allowance, or a company car that covers personal expenses, these are considered income under Minnesota law.

Step 3: Factoring in Unearned Income

Gross income is not limited to what you earn at a job. It also includes unearned income such as unemployment benefits, workers' compensation, social security disability benefits (SSDI), and consistent investment dividends. Need-based public assistance, however, is generally excluded from gross income.

Specific Deductions Allowed Under Minnesota Law

While the PICS model relies primarily on gross income, Minnesota law acknowledges that certain mandatory financial obligations impact a parent's ability to pay child support. When evaluating the final numbers or determining if a deviation is appropriate, courts look at specific deductions.

Union Dues and Mandatory Professional Fees

If you belong to a trade union in Minnesota or hold a license that requires mandatory professional fees to maintain your employment, these costs are heavily scrutinized. While they may not automatically reduce your statutory gross PICS income, courts often consider mandatory union dues as a valid reason to support a deviation from the standard guidelines, as these are non-negotiable costs to keep your job.

Mandatory Retirement Contributions

Some employers, especially government agencies and school districts in Minnesota, require mandatory contributions to a pension or retirement plan (such as PERA). Because these contributions are not voluntary and you cannot opt out of them, the court recognizes that this money is not available for immediate child support. Like union dues, mandatory retirement deductions can influence the court's overall evaluation of your net available income.

Spousal Maintenance and Prior Child Support Orders

Under Minn. Stat. § 518A.29, the amount of spousal maintenance (alimony) you are ordered to pay, or any child support you are actively paying for non-joint children from a previous relationship, is legally deducted from your gross income before your PICS percentage is finalized.

Non-Deductible Expenses: What Does Not Count

It is equally important to understand what the court will explicitly refuse to deduct from your income calculation.

• Voluntary 401(k) Contributions: If you choose to put 10% of your paycheck into a 401(k), the court will not deduct this from your gross income. Voluntary savings are subordinate to your obligation to support your child.
• Personal Debt: High credit card bills, personal car loans, and student loans are not valid deductions. The court prioritizes the child's basic needs over consumer debt.
• Income Taxes: Because Minnesota's PICS model is based on gross income, the taxes you pay to the IRS and the state are generally not deducted from the baseline calculation.

Court Filing Fees in Minnesota

If you need to establish a child support order through the court system, you will face standard filing fees.

How Long Does the Process Take?

Establishing an initial child support order in Minnesota typically takes between 3 to 6 months. The timeline depends heavily on how quickly both parents submit their financial affidavits. If one parent refuses to provide their tax returns and pay stubs, the court may use subpoenas to force compliance, which can delay the final hearing.

Frequently Asked Questions (FAQ)