How is child support calculated for high incomes in Canada?
Under section 4 of the Federal Child Support Guidelines, for payor income over $150,000 a court may order the full table amount, or the table amount for the first $150,000 plus a percentage of the income over $150,000 (the 'section 4 add-on'), or a different amount it considers appropriate. The add-on percentages and base amounts vary by province and number of children.
Is there a cap on child support in Canada?
There is no fixed dollar cap, but section 4 gives courts discretion above $150,000. A court can find that the full guideline table amount would be inappropriate given the child's actual needs and order a lower add-on. In practice, very high incomes can lead to amounts below a straight-line extrapolation of the tables.
What income is used for high-income child support?
The payor's 'Guideline income' is used, typically their total (line 15000) income from tax returns, with adjustments under Schedule III of the Guidelines. For high earners, income can include bonuses, dividends, capital gains, stock options, and imputed income where a payor is found to be diverting or understating income.
Does the section 4 add-on always apply above $150,000?
Not automatically. Section 4 gives the court a choice: apply the full table amount, apply the base-plus-percentage add-on, or set a different figure. The add-on is the common starting point, but a payor can argue the child's reasonable needs are met with less, and a recipient can argue for more.