Formulas used to convert income to a monthly amount that is then used to determine client benefits:
- Monthly Income
- Ready to use, or divide by number of months you have if income varies per month.
- Weekly Income
- Total weekly amounts for the last 30 days, divide by the number of weeks to obtain an average, and then multiply the average by 4.3 to obtain anticipated monthly income.
- Every 2 Weeks
- Total pay amounts for the last 30 days, divide by the number of pay periods, and multiply the average by 2.15 to obtain the average monthly income.
- Twice a Month
- Total pay amounts for the last 30 days, divide by the number of pay periods, and multiply the average by 2 to obtain the average monthly income.
- Daily (Method 1) – Day Labor with consistent days worked
- Obtain daily amounts per week, average the weekly amounts, and then multiply by 4.3 to obtain an average monthly income.
- Daily (Method 2)* – Day Labor with inconsistent days worked
- Average the income received in two calendar months(example: May – $55, June – $70 equals $125 divided by 2 equals $62.50 or $63 income counted)
- Seasonal
- Divide yearly amount by 12 if the income is meant to sustain the family all year
- Annual
- Divide yearly amount by 12 for monthly average.
* Please note that the TANF program only use Method 1 when converting daily income to monthly amount.
Daily Income Example: Method 1
James is paid $50 dollars, three days per week. You can take the $150 amount and multiply this by 4.3 = $645 per month anticipated. If this income comes from check stubs and taxes are taken out, count this as earned income. If this is cash received, this is considered self-employment.
Daily Income Example: Method 1
Meredith works for her neighbors cleaning homes and other odd jobs whenever she can. She remembers that she made $300 two weeks ago. Last week, she made $100 on Monday, $35 of Tuesday, and $80 on Thursday – and that is all. Meredith told you at the time of the interview that this is the most she can provide and that the numbers are pretty accurate week to week.
Total for week 1: $300
Total for week 2: $100 + 35 + 80 = $215
Average: $300 + 215 = $515/2 = $257.50 * 4.3 = $1107 anticipated monthly
*Remember to ask the client about business expenses.
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