Family Resource Simulator User Guide

How the Family Resource Simulator Works

Step 1 — Select state and city (or county)

Step 2 — Select family characteristics

Step 3 — Enter income sources, assets, and debt

Step 4 — Select benefits

Step 5 — Make choices about child care

Step 6 — Make choices about health insurance

Step 7 — Make choices about other expenses

Step 8 — View results

Methods

Calculating Family Resources

Calculating Family Expenses

Benefit Eligibility Assumptions

Estimating Family Child Care Needs

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How the Family Resource Simulator Works

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The Family Resource Simulator shows the impact of work supports on the resources of a hypothetical family as family earnings increase. The Simulator is available for up to 7 cities (or counties) in each of 14 states plus the District of Columbia. The District of Columbia Simulator was developed by NCCP in collaboration with the DC Fiscal Policy Institute.

After choosing a state and city (or county), users make choices about family characteristics; income sources, assets, and debt; benefit participation; and child care, health insurance, and other expenses. To move to the next step, click on the Simulator's forward arrow button. To return to the previous step, use the Simulator's back arrow button, rather than the back button on your browser. The Simulator will remember the choices you have already made. The “Reset the Family Resource Simulator” button allows you to undo your choices and return to Step 1. For help on any step, click on the question mark.

Based on your choices, the Simulator calculates the family’s resources and basic expenses as parental earnings increase.

Step 1 — Select state and city (or county).

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In Step 1, you choose a state and city (or county).

Select a state	Select a state.
Select a city (or county)	Select a city or county. Place of residence affects the cost of child care, health insurance, housing, transportation, and other necessities. In some states, it also affects tax and benefit rules.

Step 2 — Select family characteristics.

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In Step 2, you make choices about family structure and the number of and ages of children. The Family Resource Simulator assumes the household contains only those family members listed. It also assumes that no family member is pregnant, disabled, or elderly.

Family structure	Choose single- or two-parent.
Age of first, second, third child	Enter the age (1 through 17) of each child. The number and ages of children will affect the family’s child care needs (e.g., the Simulator assumes that children ages 13 and above do not need paid child care) and may also affect eligibility for certain benefits.

Step 3 — Enter income sources, assets, and debt (for single-parent family).

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In Step 3, you make choices about the family's income sources, assets, and debt. The Family Resource Simulator assumes that the parent is employed; results show family resources and expenses as the parent's earnings increase.

Starting wage rate	The Simulator calculates family resources and expenses as the parent enters the workforce and increases her earnings. The starting wage rate is used to determine when the parent begins full-time work (additional earnings increases can be attributed to hours or hourly wages). The default value is the state's 20th percentile wage rate - i.e., 80% of the state’s workers earn a higher wage, and 20% earn a lower wage.
Child support income (amount paid by non-custodial parent)	Enter the level of child support paid to the family by a non-custodial parent. Receipt of child support may affect the family’s eligibility for certain benefits. Also, if the family is receiving TANF cash assistance benefits, some or all of this money may be withheld by the state, depending on state policy.
Amount of family savings (in checking or savings account)	Enter the amount of family savings. If the family has more than $5,000 in savings, the Simulator will assume that the family earns a small amount of interest.
Value of the family's car	If the family has a car, enter its fair market value.
Amount family owes on car	Enter the amount the family owes on the car, if any (note: amount owed must be less than value of car). This amount will be subtracted from the car's value to determine the "equity value" of the vehicle.
Debt payment (e.g., credit cards, medical debt, car payment)	Enter the amount of the family's monthly debt payments, if any.

Step 3 — Enter income sources, assets, and debt (for two-parent family).

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In Step 3, you make choices about the family's income sources, assets, and debt. The Family Resource Simulator assumes that at least one parent is employed; results show family resources and expenses as parents' earnings increase.

Employment of second parent	The Simulator assumes full-time employment for one parent. This option asks you to choose the maximum employment status of the second parent. The second parent’s employment status affects the family’s child care needs. The Simulator assumes that children need care only when both parents are working. Note that if you select full- or part-time, the Simulator assumes that the second parent enters the workforce after the first parent enters the workforce and reaches full-time employment. For more information, see Estimating Family Child Care Needs.
Parent(s)’ Starting wage rate	The Simulator calculates family resources and expenses as the parent enters the workforce and increases her earnings. The starting wage rate is used to determine when the parent begins full-time work (additional earnings increases can be attributed to hours or hourly wages). The default value is the state's 20th percentile wage rate - i.e., 80% of the state’s workers earn a higher wage, and 20% earn a lower wage.
Child support income (amount paid by non-custodial parent)	Enter the level of child support paid to the family by a non-custodial parent. Receipt of child support may affect the family’s eligibility for certain benefits. Also, if the family is receiving TANF cash assistance benefits, some or all of this money may be withheld by the state, depending on state policy.
Amount of family savings (in checking or savings account)	Enter the amount of family savings. If the family has more than $5,000 in savings, the Simulator will assume that the family earns a small amount of interest.
Value of the family's car	If the family has a car, enter its fair market value.
Amount family owes on car	Enter the amount the family owes on the car, if any (note: amount owed must be less than value of car). This amount will be subtracted from the car’s value to determine the "equity value" of the vehicle.
Value of the family's second car	If the family has a second car, enter its fair market value.
Amount family owes on car	Enter the amount the family owes on the second car, if any (note: amount owed must be less than value of car). This amount will be subtracted from the car's value to determine the "equity value" of the vehicle.
Debt payment (e.g., credit cards, medical debt, car payment)	Enter the amount of the family's monthly debt payments, if any.

Step 4 — Select benefits.

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In Step 4, you make choices about the family’s participation in benefit programs.

Note: Only refundable earned income tax credits and refundable child care tax credits are included as options on this page; the value of all other tax credits (e.g., the federal Child Tax Credit) is reflected in the family's tax liability.

For more information about how participation in these benefits may affect family resources and expenses, see Calculating Family Resources and Calculating Family Expenses. For more information about how the Simulator determines eligibility for these programs, see Benefit Eligibility Assumptions.

Step 5 — Make choices about child care (with CCDF subsidy).

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In Step 5, you make choices about the family’s child care. The Family Resource Simulator assumes that preschool-aged children (under age 6) need care whenever their parents are working, and children ages 6 through 12 need care when their parents are working and they are not in school. The Simulator assumes that children ages 13 and older do not need paid care. The Simulator will also adjust the rates when parents are working less than full-time. For more information, see Estimating Family Child Care Needs.

The following options are displayed if you selected “Yes” for CCDF Subsidies in Step 4 — Select benefits .

Select setting for subsidized child care

For each child, choose the type of child care used when the cost is subsidized by the state's child care subsidy program. These options vary by state to reflect the care categories established by the state program. Care for children ages 6 through 12 represents school-age care (e.g., part-time care when parents are working full-time). Also displayed is the cost of care in each setting. These costs reflect the provider payment rates in the state's subsidy program, and not any copayments paid by the family.

Choose whether family uses the same setting when ineligible for subsidized car

(Note that in addition to income eligibility criteria, parents must meet a minimum work hour requirement in some states to qualify for subsidies)

For each child, select “Yes” to indicate that the child will remain in the same type of child care setting when the family’s income becomes too high to qualify for child care subsidies. Select “No” to indicate that the child will be moved into a different type of care. If you select “No”, you will be provided with additional child care options when you move to the next page.

If you select “No” for at least one child for the options above, an additional option is displayed when you go to the next page:

Select setting or enter cost for unsubsidized child care.

Select child care setting	For each child, select a child care setting. The cost of care is indicated in parentheses and reflects the provider payment rate used in the state's child care subsidy program. This rate is based on full-time parental employment. The Simulator will adjust the rate when parents are working fewer hours. Rates for school-aged children (ages 6 through 12) are based on part-day care.
	Or
Enter cost per child	For each child, enter the monthly cost of care. This amount should reflect the cost when parents are working full-time. The Simulator will adjust the amount when parents are working fewer hours. Base the cost for school-aged children (ages 6 through 12) on part-day care. To indicate that the parent does not pay for care, enter $0.

Step 5 — Make choices about child care (without CCDF subsidy).

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The following option is displayed if you selected “No” for CCDF Subsidies in Step 4 — Select benefits .

Select setting or enter cost for child care.

Select child care setting	For each child, select a child care setting. The cost of care is indicated in parentheses and reflects the provider payment rate used in the state's child care subsidy program. This rate is based on full-time parental employment. The Simulator will adjust the rate when parents are working fewer hours. Rates for school-aged children (ages 6 through 12) are based on a part-day.
	Or
Enter cost per child	For each child, enter the monthly cost of care. This amount should reflect the cost when parents are working full-time. The Simulator will adjust the amount when parents are working fewer hours. Base the cost for school-aged children (ages 6 through 12) on part-day care. To indicate that the parent does not pay for care, enter $0.

Step 6 — Make choices about health insurance (with public health insurance).

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In Step 6, you make choices about the family's health insurance expenses when health insurance is unsubsidized.

The following option is displayed if you selected “Yes” for Public Health Insurance in Step 4 — Select benefits . (Note that the health insurance options are somewhat different in the Illinois and New York Simulators, reflecting differences in their health insurance policies.)

Choose private health insurance option when family loses public coverage.

Parents typically face lower income eligibility limits than their children, which means parents may lose public coverage while children are still eligible. The Simulator uses the cost for “parent(s)” to estimate the family’s health insurance costs when children, but not parents, are eligible for public health insurance. The cost for “family” insurance is used when family income is too high for any family members to qualify for public coverage.

You can choose one of two sets of health insurance cost estimates provided by the Simulator, or you can enter your own values. The Simulator’s health insurance cost estimates include insurance premiums only, not copayments or other out-of-pocket expenses. See Calculating Family Expenses.

Employer-based plan: Cost of employee contribution for employer-based health insurance.
Nongroup plan: Cost of a private nongroup plan purchased by the family at full cost.
Other cost estimate: Enter values for the cost of health insurance for parent(s) and for the family.

Step 6 — Make choices about health insurance (without public health insurance).

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In Step 6, you make choices about the family's health insurance expenses when health insurance is unsubsidized.

The following option is displayed if you selected “No” for Public Health Insurance in Step 4 — Select benefits .

Choose private health insurance option.

To estimate the cost of private health insurance for parents (only) and for the family, you can choose one of two sets of estimates provided, or you can enter your own values. The Simulator’s estimates include insurance premiums only, not copayments or other out-of-pocket expenses. For more information, see Calculating Family Expenses.

Employer-based plan: Cost of employee contribution for employer-based health insurance.
Nongroup plan: Cost of a private nongroup plan purchased by the family at full cost.
Other cost estimate: Enter values for the cost of health insurance for parent(s) and for the family.

Step 7 — Make choices about other expenses.

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In Step 7, you decide whether to use the Family Resource Simulator’s estimates for other expenses (which include housing, food, transportation, and other necessities) or enter your own cost estimates. For more information about the Simulator's estimates, see Calculating Family Expenses.

Select Family Resource Simulator estimate or enter your own estimate for other expenses.

Housing expenses (cost of unsubsidized rent)	Select Simulator estimate, OR Enter your own estimate for the family’s monthly rent.
Food expenses	Select Simulator estimate, OR Enter a value for the family’s monthly food costs.
Transportation expenses (at maximum employment)	Select Simulator estimate, OR Enter a value for the family’s monthly transportation expenses. This rate should be based on full-time parental employment. The Simulator will adjust the rate when parents are working fewer hours. (For two-parent families in which both parents work, transportation costs are entered separately for each parent.)
Cost of other necessities	Select Simulator estimate, OR Enter a value for the monthly cost of the family’s other necessities.

Step 8 — View results.

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Step 8 presents four graphs that display family resources and basic family expenses in different ways. Graph results reflect the choices the user has made on the Family Resource Simulator steps 1 through 7; these choices are displayed on the right side of the page. For more information about how resources and expenses are calculated, see Calculating Family Resources, Calculating Family Expenses, and Benefit Eligibility Assumptions.

Graph 1: Family Resources (cash and food stamps)

The “Family Resources” graph shows the level and composition of family resources as family earnings increase. Only cash and near-cash (i.e., food stamps) resources are included. For information about how these are calculated, see Calculating Family Resources.

Graph 2: Family Resources and Basic Expenses

The “Family Resources and Basic Expenses” graph displays total family resources (in the left hand columns) next to basic family expenses (in the right hand columns). As in Graph 1, total family resources include only cash and near-cash (i.e., food stamps) resources. For information about how resources and expenses are calculated, see Calculating Family Resources and Calculating Family Expenses.

Graph 3: Net Family Resources (resources minus expenses)

The “Net Family Resources” graph displays the net resources available to the family as earnings increase. The green line represents the net resources available to the family after subtracting basic expenses. As in Graphs 1 and 2, resources include cash and near-cash resources: earnings, child support, refundable earned income tax credits, refundable child care tax credits, TANF, and food stamps (for more information, see Calculating Family Resources). Expenses include: housing, food, child care, transportation, health insurance, other necessities, taxes, and debt payments (for more information, see Calculating Family Expenses). The red horizontal line represents the “break even” line, where the family’s total resources are equal to basic expenses; asterisks indicate where the family reaches this point.

Graph 4: Family’s Receipt of Benefits by Earnings Level

The “Family’s Receipt of Benefits by Earnings Level” graph indicates the family’s receipt of benefits as earnings increase. Only benefits the user selected in Step 4 — Select benefits are displayed (if no benefits are selected, this graph will not be displayed). Benefits that have an asset eligibility test are marked by a caret next to the benefit name. Eligibility for benefits is often tied to adjusted income—i.e., income after certain allowed deductions, such as earned income disregards and deductions for child care expenses—so a family with gross income above a program’s eligibility limit could still be eligible to receive benefits. As with the other graphs, results will vary based on user choices regarding family characteristics, income sources and assets, benefit participation, and family expenses.

Changing Graph Settings

Advanced output options are available below the graphs. You can change graph settings by entering a different “Maximum Earnings” level and then clicking "Redraw." The default maximum earnings level is the state median income, based on data issued by the U.S. Census Bureau for a family of four (and adjusted for other family sizes according to the method used by the Low Income Home Energy Assistance Program, LIHEAP).

You may also select “Show Earnings by month” (versus year), and then click “Redraw." Note that when resources are displayed in monthly terms, income tax credits are also displayed (value reflects the annual credit divided by 12). In practice, however, families typically do not receive these credits on a monthly basis but rather as a single payment when they file their taxes.

Methods

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Calculating Family Resources

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The Family Resource Simulator calculates the cash and near-cash resources available to the family as family earnings increase. In addition to earnings, these resources may include child support and the following benefits: refundable tax credits, TANF cash assistance, and food stamps. The family’s child support income depends on user choices in Step 3 – Enter income sources, assets, and debt, and may also be affected by receipt of TANF cash assistance. Benefit receipt varies based on user choices in Step 4 – Select benefits and on the Simulator's calculations regarding the family’s eligibility for benefits (for more information about the Simulator's calculations, see Benefit Eligibility Assumptions). (The Simulator also calculates the impact of in-kind benefits, such as child care subsidies, on family expenses. For more information, see Calculating Family Expenses below.)

Earnings	Parental earnings. If the family has more than $5,000 in savings (based on the choices made in Step 3 – Enter income sources, assets, and debt), a small amount of interest income is also included.
Child support	Child support income received by the family from non-custodial parent(s). Note that if the family is receiving TANF cash assistance, this reflects the amount of child support passed through to the family by the state’s TANF program.
Federal EITC	Federal Earned Income Tax Credit.
State EITC	State Earned Income Tax Credit, where applicable. Only refundable state credits are displayed as a separate resource; nonrefundable credits are included in tax calculations. (Note that in some cases, the value of the state EITC may be too small to be visible in the graphs.) Note: In Maryland , which offers both a nonrefundable and a refundable EITC, the combined value of these credits is displayed.
Local EITC	Local Earned Income Tax Credit, where applicable. Only refundable local credits are displayed as a separate resource; nonrefundable credits are included in tax calculations. (Note that in some cases, the value of the local EITC may be too small to be visible in the graphs.) Note: In Rockville ( Montgomery County ), Maryland , which offers both a nonrefundable and a refundable EITC, the combined value of these credits is displayed. In other cities, local credits, which are nonrefundable, are included in tax calculations.
State Child Care Tax Credit	State Child Care Tax Credit, where applicable. Only refundable state credits are displayed as a separate resource; nonrefundable credits are included in tax calculations. (Note that in some cases, the value of the state Child Care Tax Credit may be too small to be visible in the graphs.)
TANF	Temporary Assistance for Needy Families (TANF) cash assistance.
Food stamps	Cash value of food stamp benefits.

Calculating Family Expenses

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The Family Resource Simulator gives users flexibility in determining the cost of basic family expenses. The Simulator provides cost estimates for housing, food, child care, transportation, health insurance, and other necessities. These estimates are calculated based on a methodology that draws on the Self-Sufficiency Standards developed by Diana Pearce for Wider Opportunities for Women and on the Economic Policy Institute's Basic Family Budgets. Users may also enter their own values for these expenses (see Step 5 – Make choices about child care, Step 6 – Make choices about health insurance, and Step 7 – Make choices about other expenses), and they can enter a monthly debt payment amount in Step 3 – Enter income sources, assets, and debt. In addition, the cost of certain expenses—housing, child care, and health insurance—may be offset by in-kind benefits depending on user choices in Step 4 – Select benefits and on the Simulator's calculations regarding the family’s eligibility for benefits (for more information about the Simulator's calculations, see Benefit Eligibility Assumptions).

Housing	If subsidized by Section 8 Housing Choice Vouchers, the cost reflects family rent contribution, as determined by program rules. Unsubsidized options: The Simulator estimate is based on the Fair Market Rent determined by the U.S. Department of Housing & Urban Development. This value varies based on residence and size of unit; the Simulator assumes a 2-bedroom unit for families with 1 or 2 children and a 3-bedroom unit for families with 3 children. User-entered value.
Food	Options: The Simulator estimate is based on the Low-Cost Food Plan developed by the U.S. Department of Agriculture, which varies based on family size and the ages of family members. User-entered value.
Child Care	If subsidized by Child Care and Development Fund (CCDF) subsidies, the cost reflects the child care copayment, as determined by program rules. (Note that in some states, in addition to income eligibility criteria, parents must meet a minimum work hour requirement to qualify for subsidies. Where such requirements are not met, the Simulator assumes that the family’s child care expenses are unsubsidized.) The Simulator will adjust the rates when parents are working less than full-time. For more information, see Estimating Family Child Care Needs. Unsubsidized options: The Simulator provides estimates for several different child care settings based on the maximum provider payment rates used by the state's CCDF subsidy program. These values vary based on child care setting, place of residence, and child's age. Cost also varies depending on the family's child care needs (for more information about how this is determined, see Estimating Family Child Care Needs). User-entered value (per child).
Transportation	Options: The Simulator estimate varies based on place of residence. In most cases, transportation cost estimates assume that parents commute to work by car. However, in cities with extensive public transportation systems, the estimate is based on the cost of public transportation. The state’s Self-Sufficiency Standard is used to determine the adequacy of public transportation. Self-Sufficiency Standards, developed by Wider Opportunities for Women in collaboration with state and local partners, assume that public transportation is adequate if a substantial percentage of the population uses it to commute to work (for more information, go to www.sixstrategies.org/sixstrategies/selfsufficiencystandard.cfm and select “Standard for your state”). Private transportation estimates are calculated based on the Economic Policy Institute’s Basic Family Budget methodology, which relies on data from the 2001 National Travel Household Survey, the 1990 Nationwide Personal Transportation Survey, and the IRS cost-per-mile rate (for more information, see www.epinet.org/datazone/fambud/fam_bud_calc_tech_doc.pdf). Note that these estimates were updated in the Family Resource Simulator in November 2005, following the Economic Policy Institute's release of updated family budgets. Public transportation estimates are determined based on the prices reported by the local transportation authority. User-entered value (per parent in two-parent families). Note: Transportation costs are adjusted for parents working less than full-time.
Health Insurance	If subsidized by public health insurance, the cost reflects public health insurance premiums (if any). These premiums vary by family income and, in some cases, by child age. When health insurance is subsidized for some, but not all, family members (e.g., parents typically face lower income eligibility limits than children), the cost reflects the sum of public health insurance premiums for those with public coverage and unsubsidized premiums for those without. Unsubsidized options: The Simulator provides estimates for premiums under two different types of health insurance coverage: Employer-based plan estimates are based on the average employee contribution for employer-based coverage in the state’s private sector, according to the Medical Expenditure Panel Survey (MEPS) conducted by the federal Agency for Healthcare Research and Quality (for more information, see www.meps.ahrq.gov/mepsweb/data_stats/quick_tables.jsp). Estimates reflect state averages for “family coverage” for a family plan, “single coverage” for a single parent, and “employee-plus-one coverage” for two parents. Nongroup plan estimates are based on the lowest quotes provided on www.ehealthinsurance.com for a preferred provider organization (PPO) plan or point-of service (POS) plan with a $500 deductible, 20% coinsurance, and copayments of no more than $25. This web site did not provide quotes for Massachusetts or New York, so estimates for these states are from www.bluecrossma-directpay.com and www.ins.state.ny.us/ihmoindx.htm respectively. (Note that New York rates are for point of service, or POS, plans.) User-entered value. Note: Health insurance expenses include premiums only, not copayments or other out-of-pocket expenses.
Other Necessities	Options: The Simulator estimate is based on the Economic Policy Institute’s Basic Family Budget methodology, which relies on data from the Consumer Expenditure Survey (for more information, see www.epinet.org/datazone/fambud/fam_bud_calc_tech_doc.pdf). It equals 27 percent of the sum of the family's (unsubsidized) housing and food costs. User-entered value.
Debt Payment	User-entered value.
Taxes	Payroll taxes and federal and state income taxes. Tax credits other than refundable earned income tax credit and refundable child care tax credits are included in tax calculations (e.g., federal Child Tax Credit, federal Child and Dependant Care Tax Credit). Refundable earned income tax credits and refundable child care tax credits are displayed separately as family resources and are not included in these calculations.

Benefit Eligibility Assumptions

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For each of the benefits the user selects in Step 4 – Select benefits, the Family Resource Simulator determines the family’s eligibility and benefit level as the family’s earnings increase. Simulator calculations are based on the program rules in effect during the state Simulator year, and they take into account interactions between different benefits as well as interactions between benefits and expenses. These calculations require making certain assumptions and simplifications, including the following:

Recipient criteria: The Simulator uses eligibility criteria that apply to ongoing recipients. For some benefits, new applicants face more restrictive limits.
Transitional benefits: Transitional benefits and time-limited earnings disregards generally are not reflected in the Simulator's results. Exception: Colorado's TANF cash assistance results reflect the 2/3 earned income disregard that is available during the first 12 months of assistance.
Non-financial criteria: The Simulator generally assumes the family meets non-financial criteria for benefits, such as TANF work requirements and immigration status requirements. However, some state Child Care and Development Fund (CCDF) subsidy programs require parents to work a minimum number of hours per week to qualify for subsidies. The Simulator determines whether this requirement has been met based on the family’s earnings (and, in two-parent families, user choices regarding the second parent’s employment) and, for families receiving TANF cash assistance, the state TANF program’s work requirements. For more information about how the Simulator estimates parents’ work hours, see Estimating Family Child Care Needs.
Household composition: The Simulator assumes that no family member is pregnant, disabled, or elderly. It also assumes the household contains only those family members listed (i.e., parents and minor children).

Estimating Family Child Care Needs

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The Family Resource Simulator estimates family child care needs at each earnings level in order to calculate family child care expenses. This requires making the following assumptions and simplifications:

1. Preschool-aged children (under age 6) need care while their parents are:

At work,
Commuting between the child care setting and the workplace (up to 1 hour per day), and
Engaged in unpaid work activities required by TANF cash assistance (if applicable).

2. If children need less than full-time care, child care expenses are adjusted accordingly. (Note that when the family is receiving child care subsidies, family copayments do not necessarily vary depending on the amount of care received, according to state CCDF program rules.)

Children ages 6 through 12 are assumed to be in school (not on summer break or other holiday). The Simulator assumes that a school-aged child needs half the amount of care of a preschool-aged child.

(Note that in Step 5, when the user selects or enters child care rates for school-aged children, these rates reflect school-age care, taking into account the assumption that a school-aged child needs half the amount of care of a preschool-aged child.)

3. Children ages 13 and older do not need paid child care.

4. In a two-parent family, child care needs are based on the work hours of the parent who earns less (the “second parent”). The Simulator assumes that parents' work hours overlap, i.e., when the parent who earns less is working, the other parent is not available to care for the children. When one parent is not employed, the family does not need child care.

Note that for a two-parent family, the user selects the maximum work status of the second parent: “full-time employment,” “part-time employment,” or “not employed.” If the user selects “not employed,” then all family earnings are attributed to the first parent, and the Simulator assumes that the family does not need child care. Otherwise, the Simulator assumes that the second parent enters the workforce after the first parent reaches full-time employment (40 hours per week, 52 weeks per year). At this point, all additional family earnings are attributed to the second parent until that parent reaches maximum work status.

5. To determine a parent’s work hours at a given earnings level, the Simulator uses the parents' "starting wage rate," as entered on Step 3 – Enter income sources, assets, and debt. The default starting wage rate is equal to the 20th percentile wage rate in the state—i.e., the wage rate at which 80 percent of the state’s workers earn a higher wage, and 20 percent earn a lower wage.

This wage rate is only a "starting" rate because once the parent is working enough hours to require full-time child care, the Simulator no longer needs to “know” the parent’s wage rate (i.e., any additional increases in earnings may be attributed to increases in either hours or hourly wages).