The minimum wage increase in Missouri will have a major impact child support calculations for some people. Specifically, in situations where one parent is voluntarily underemployed or unemployed, courts are going to start imputing significantly more income. Background: In Missouri, if a parent who is paying child support is voluntarily underemployed or unemployed, the State or a judge may impute income. Imputing of income involves applying a fictitious income figure for purposes of calculating child support. The fictitious figure is intended to at least represent what the underemployed/unemployed parent is capable of earning. In many instances, the imputed income amount will be equivalent to the state minimum wage at full time employment.
Example of imputing of minimum wage: dad doesn't want to work and wants to sit on the sofa watching cartoons all day. Dad does not have any specialized training, is only 22 years old, but is healthy and capable of working. A judge may impute income to him calculated as follows: minimum wage at 40 hours per week at 52 weeks per year.
Increase in the minimum wage will significantly alter this calculation. The minimum wage has been pretty flat from 2015 through 2018. But it is progressively increasing from less than $8/hour during that time period to $12/hour by 2023. This means that judges will probably start imputing substantially more money to people who are underemployed or unemployed.
I ran the numbers for a mom earning $2,500 gross income per month, a dad who is voluntarily underemployed or unemployed but capable of full time employment, two children, $300 per month in health insurance expenses paid by mom, and 90 overnights per year ordered and exercised by dad. Prior to 2019 the situation outlined here would result in dad paying child support of $372 per month. In 2020 that figure jumps to $468 per month. And it 2023 it would jump to $579 per month!
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