The following are examples of how to consider, calculate, etc., earned income:
Example 1: Anticipating Income (Paid Twice a Month)
- What is the correct method of anticipating earned income when an employee is paid twice a month, but has not yet received a paycheck? We have an employer’s statement of hours per week and rate of pay.
- In this situation, it is appropriate to convert the employer’s statement of intent in order to arrive at an anticipated amount for a month. This is accomplished by multiplying the weekly hours by rate of pay and then by 4.3 to arrive at an average amount for the month. THEN, when regular paychecks start coming in, it may be appropriate to adjust the income using the standard twice per month method of calculation.
Example 2: Military Reserve Income
- A client works 1 weekend a month in the Military reserves. Is this countable income for food benefits? How do we consider the two weeks of annual training required?
- These wages are considered as earned income toward the food benefits.
We would take the amount earned from the two weeks of annual training and annualize it.
Example 3: Work Uniform Allowances
- If an employer pays 15 cents per hour worked to the employee to purchase uniforms, is this income exempt?
- If this is shown on the check stub as a uniform allowance and it does not represent a gain to the client, it is excluded. If this represents a gain to the client, we must consider it as income. Also, if this pay is not shown separately on the check stub, we must consider this as income.
Example 4: Pay Rate Increases
- When a client applies for food benefits and they provide their last 30 days of pay and the worker notices on their most recent pay stub the client received a pay rate increase. How do we calculate the income? Do we need to be converting the check stubs that are at the old rate of pay to the new rate of pay to anticipate future earnings? Or, can we just use the last check that has the new rate of pay as long as it is representative of the client’s anticipated earnings? Ex: Mike is paid bi-weekly and has provided three check stubs.
- 05/03 gross – $630 showing pay rate of $9 an hour
- 05/17 gross – $650 showing pay rate of $9.25 an hour
- 05/31 gross – $647 showing pay rate of $9.25 an hour
- Since there was a pay increase with the check received on 05/17 we only use checks 05/17 & 05/31 in the income calculation.
- You may use either option. If you choose to convert the old pay stubs using the new pay rate, then you must make certain the hours at the old rate of pay are representative. You will need to document which option you chose and why.
Example 5: Holiday Pay
- A client provided 30 days of pay verification. The client worked during the holidays and received holiday pay on one of the checks. Is holiday pay excluded?
- You need to determine if the holiday pay is representative and likely to recur again in the certification period. If it will recur, then you should include it to anticipate the countable income. If the holiday pay will not recur, then you would disregard the holiday pay and document why it is not being used.
Example 6: Offer of Employment Only (SNAP Benefit only)
- A client stated in their interview for SNAP benefits that they have an offer of employment, but they have not started working yet. Do we add the income to the case?
- For an ongoing case we would just case note that the case is not a change reporter case, and that the client would only need to report if income goes over the standard. Refer to Appendix C-3 for informing the client about the income standard. For new applications, we also do not add income to the case for a job that has not yet begun.
Example 7: Tips
- Client states that they are employed as a server at a local diner. They provided a pay stub, which shows their hourly rate plus tips. It appears that the hourly rate and tips add up to minimum wage.
- For pay stubs that include tips; we would typically use the gross amount of the pay stubs to determine and calculate income. We need to ask if the tips are representative. If the client states that the amount of income on the paystub is representative, then we would just use the gross amount to determine the income. If the client states that they receive additional tip income above what is shown on the paystub; then we would take their statement of how much they receive, and calculate the excess as a second employer in the MICAL. Remember to not count allocated tips (tips that bring the person’s wages up to minimum wage). This should be indicated on the pay stub.
Example 8: Benefit Allowance
- Client works for a local hospital. Once receiving paystubs, the paystubs show a benefit allowance on their checks. The gross income of this check may not be useable as it may include this benefit allowance.
- Examine their hourly pay and their deductions closely. If their deductions of medical insurance, dental and vision insurance spend their entire benefit allowance, it is removed from the check. If there is some left over after these deductions are paid, this is counted as a part of their gross pay. Always remember to show your work on how you arrived to the correct income calculation in your case notes.
Example 9: Work study
- Client is a university student and states they work on campus at the coffee shop as part of work study. How do we handle this income?
- If a part of work study program, this income is exempt. OKlahoma SNAP 340:22:3.
Example 10: Docked Pay
- Client has submitted her paystubs as a salaried employee. She missed a lot of work this last paycheck and did not have enough leave to cover the hours needed to produce her full salary. How do we count her income?
- We must determine if this is considered representative pay. What was the reason for the leave of absence, and is it likely to occur again? If so, we would use the gross amount of this check, and not exclude it. If it is an irregular circumstance and we do not anticipate this being an issue again, this paystub will need to be treated as irregular income. Please staff how to properly handle using policy SNAP policy OAC 340:50:7(10) as well as your direct supervision.
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