H.B. 167 Enrolled

CHILD SUPPORT - SOCIAL SECURITY CREDIT
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Byron L. Harward
AN ACT RELATING TO JUDICIAL CODE; REQUIRING THAT SOCIAL SECURITY
BENEFITS BE CREDITED AS CHILD SUPPORT AGAINST THE POTENTIAL
OBLIGATION OF THE PARENT ON WHOSE EARNING RECORD IT IS BASED.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
78-45-7.5, as last amended by Chapter 171, Laws of Utah 1996
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 78-45-7.5 is amended to read:
78-45-7.5. Determination of gross income -- Imputed income.
(1) As used in the guidelines, "gross income" includes:
(a) prospective income from any source, including nonearned sources, except under
Subsection (3); and
(b) income from salaries, wages, commissions, royalties, bonuses, rents, gifts from
anyone, prizes, dividends, severance pay, pensions, interest, trust income, alimony from previous
marriages, annuities, capital gains, social security benefits, workers' compensation benefits,
unemployment compensation, disability insurance benefits, and payments from "nonmeans-tested"
government programs.
(2) Income from earned income sources is limited to the equivalent of one full-time
40-hour job. However, if and only if during the time prior to the original support order, the parent
normally and consistently worked more than 40 hours at his job, the court may consider this extra
time as a pattern in calculating the parent's ability to provide child support.
(3) Specifically excluded from gross income are:
(a) Aid to Families with Dependent Children (AFDC);
(b) benefits received under a housing subsidy program, the Job Training Partnership Act,
S.S.I., Medicaid, Food Stamps, or General Assistance; and

(c) other similar means-tested welfare benefits received by a parent.
(4) (a) Gross income from self-employment or operation of a business shall be calculated
by subtracting necessary expenses required for self-employment or business operation from gross
receipts. The income and expenses from self-employment or operation of a business shall be
reviewed to determine an appropriate level of gross income available to the parent to satisfy a child
support award. Only those expenses necessary to allow the business to operate at a reasonable level
may be deducted from gross receipts.
(b) Gross income determined under this subsection may differ from the amount of business
income determined for tax purposes.
(5) (a) When possible, gross income should first be computed on an annual basis and then
recalculated to determine the average gross monthly income.
(b) Each parent shall provide verification of current income. Each parent shall provide
year-to-date pay stubs or employer statements and complete copies of tax returns from at least the
most recent year unless the court finds the verification is not reasonably available. Verification of
income from records maintained by the Office of Employment Security may be substituted for pay
stubs, employer statements, and income tax returns.
(c) Historical and current earnings shall be used to determine whether an underemployment
or overemployment situation exists.
(6) Gross income includes income imputed to the parent under Subsection (7).
(7) (a) Income may not be imputed to a parent unless the parent stipulates to the amount
imputed or a hearing is held and a finding made that the parent is voluntarily unemployed or
underemployed.
(b) If income is imputed to a parent, the income shall be based upon employment potential
and probable earnings as derived from work history, occupation qualifications, and prevailing
earnings for persons of similar backgrounds in the community.
(c) If a parent has no recent work history, income shall be imputed at least at the federal
minimum wage for a 40-hour work week. To impute a greater income, the judge in a judicial
proceeding or the presiding officer in an administrative proceeding shall enter specific findings of

- 2 -

fact as to the evidentiary basis for the imputation.
(d) Income may not be imputed if any of the following conditions exist:
(i) the reasonable costs of child care for the parents' minor children approach or equal the
amount of income the custodial parent can earn;
(ii) a parent is physically or mentally disabled to the extent he cannot earn minimum wage;
(iii) a parent is engaged in career or occupational training to establish basic job skills; or
(iv) unusual emotional or physical needs of a child require the custodial parent's presence
in the home.
(8) (a) Gross income may not include the earnings of a child who is the subject of a child
support award nor benefits to a child in the child's own right such as Supplemental Security Income.
(b) Social Security benefits received by a child due to the earnings of a parent [may] shall
be credited as child support to the parent upon whose earning record it is based, by crediting the
amount against the potential obligation of that parent. Other unearned income of a child may be
considered as income to a parent depending upon the circumstances of each case.

- 3 -