Income Section - Other Employment Income

This is what the Spousal Support Calculator says...

Input any other annual employment income that the party received (T1, Line 104), not included in "Employment income".

Examples of "Other employment income" include (ie. not exhaustive):
employment income not reported on a T4 slip (eg. tips; occasional earnings);
net research grants;
clergy's housing allowance (T4 slip, Box 30);
income maintenance insurance plans (wage-loss replacement plans) (T4A slip, all or portion of Box 28);
veterans' benefits (T4A slip, Box 28);
certain GST/HST rebates;
royalties for a party's work or invention;
amounts received under a supplementary unemployment benefit plan (a guaranteed annual wage plan);
taxable benefit for premiums paid to cover you under a group term life-insurance plan (T4A slip, Box 28);
employee profit-sharing plan (T4PS slip, Box 35);
medical premium benefits (T4A slip, Box 28);
wage earners protection plan (T4A slip, Box 28).

According to the CSG, annual income is determined using Line 150 ("Total income") of the T1 General form, adjusted in accordance with Schedule III and ss. 17, 18 and 19 of the CSG. This is commonly referred to as "Guidelines Income".

Note that the SSAG use the same definition of annual income as under the CSG, with some exceptions.

See the help under "Employment Income" regarding Guidelines Income caps under the CSG and ceilings, floors, and floor exceptions under the SSAG.

TIP: There is a built-in conversion feature. See the help under "Employment Income".

MY REBUTTAL

Generally I am in agreement that most of this income should be included for child/spousal support calculations.

However I have two issues that I would like to cover - one of which they mention and one of which they don't.

Employee Profit Sharing Plans (EPSP)

This is probably the most common income that people would see on this line. Usually the employer requires the employee to make a contribution and then the employer will match it based on a defined percentage (ie 100%, 50%, 25%). It is the company match that appears on this line.

At first glance, it appears this should obviously be included. However, consider this scenario. What if both spouses are working and one takes advantage of it by saving his/her money while the other does not?

I am tired of our society punishing savers and rewarding spenders. It needs to be determined if both spouses have equal opportunity to have their employer contribute to an EPSP. If they both do and one does not take advantage of it, I would support an imputed amount for the non-contributing spouse.

Foreign Income

Another common inclusion on this line is foreign income (usually US Income)

Canadian citizens have to report their worldwide income on their Canadian return.
However you can't just arbitrarily add Line 104 when it includes foreign income.

The nature of this income needs to be determined to see whether it should be included.

If it is US Income, you need to request the US 1040 (similar to our T1) to assess its nature.

In addition, CRA applies an exchange rate to this amount based on an average of the previous year. Considering the volatility of the US$/C$ exchange rate, an assessment needs to be made of whether that rate CRA uses is realistic on a going forward basis.

I had a question recently about disability top up payments from WSIB. As WLRP and SUB benefits are included, I would have to support top up payments from WSIB included in income for CS/SS. It may not be on this line but it should be included in my view.