This article focuses on representative pay, special pay, and the most frequent situations that lead to pay-stub interpretation errors.

Representative Pay

Verification Timeframe

For SNAP Applications and Certification Renewals: the most recent 30 days of pay verification available as of the interview date.

For Mid-Certification Renewals (MCRs): use 30 consecutive days of pay verification from the fourth month of the certification period when calculating income.

Pay Variations
Review the pay verification to determine whether the employee’s earnings fluctuate from pay period to pay period. Look for changes in pay rates, hours worked, or other earnings that may affect gross income.

Also review earnings lines for items that cause income to fluctuate, such as:

• Shift differentials
• Overtime pay or overtime rates
• Multiple pay rates
• Bonuses
• Benefit allowances
• Incentive or premium pay

These items can may significantly affect the amount of countable income used in the eligibility determination.

Recurring Income

When determining whether pay is representative, it is important to assess whether the income is likely to recur. Representative pay should reflect a consistent and ongoing pattern of earnings rather than temporary, irregular, or one-time payments.

Factors to consider include:

• The frequency and consistency of payments.
• Whether earnings are derived from regular wages, overtime, bonuses, commissions, or other sources.
• Employer confirmation that the income is expected to continue.
• Any known changes to employment status, work hours, or compensation.

The objective is to determine whether the income is stable and reasonably expected to continue, making it a reliable indicator of future earnings.

Special Pay

Special pay refers to any earnings or pay items on a paycheck that are outside of regular hourly wages. This includes items such as overtime (OT Hourly), shift differentials (Wk Shift Diff), tips reported, bonuses or incentives (INCV), taxable benefits (GTL), and employer contributions such as stock or retirement-related payments (CO STK CONT).

Interview and Verification Requirements

• If income information is available during the interview, the household must be asked to explain each special pay line.
• Document all household responses clearly in Case Notes.
• If income is being processed after submission of paystubs, attempt to contact either the household or employer for clarification on any special pay items.
• Document all contact attempts, even if unsuccessful.

Common Special Pay Types:

A. Stock Contributions / “In-Out” Pay

Example: CO STK CONT (common with Wal-Mart)

• These are employer stock contributions or tax-related “in and out” entries.
• Typically matched by an equal deduction on the paystub.
• Treatment: Exclude from gross income (not earned income).

B. Imputed Life Insurance / Taxable Benefits

Examples: GTL, G-Term (Group Term Life)

• These represent taxable benefit value, not actual wages received. Also, an “in and out” pay.
• Treatment: Exclude from gross income

C. Imputed Life Insurance / Taxable Benefits

• May appear as a lump sum or separately itemized.
• Must verify termination date and pay period alignment.
• Treatment: Exclude as non-recurring income.

D. Tips

• Allocated Tips are for reporting purposes only and are excluded.
• May appear as Tip Credit, Declared Tips, Tip Paid Daily, Cash Tips, TIPDE, Tips Reported, etc.
• Actual tip income must be clarified with the household and/or employer.
• Treatment:
• Allocated tips: exclude.
• Actual recurring tips: include if verified as regular income

E. Flex / Fringe Benefits

• Includes reimbursements or remaining benefit allowances after deductions (e.g., insurance adjustments).
• Only the net remaining eligible benefit amount may be considered.
• Treatment: Include only qualifying remaining balance when applicable and verified.

F. Overtime

Overtime that is received consistently should be treated as regular income, similar to wages or standard hours that appear on each pay period. In these cases, overtime is considered part of ongoing earnings and included in the income calculation.

If overtime appears in the year-to-date (YTD) totals but the household reports it as a one-time or non-recurring occurrence, verification is required. The eligibility worker must contact the employer to confirm whether the overtime is expected to continue or was truly a temporary exception. When in doubt, employer confirmation is required before excluding overtime.

Case Notes

All special pay determinations must be clearly documented in case notes, including:

• Type of special pay identified
• Whether verification was obtained from household or employer
• How the amount was treated in the calculation (included/excluded/adjusted)
• Frequency and whether it is expected to recur during the certification period
• Any attempts made to contact the household or employer (credit must be documented for attempt)

Bonus Income

Identification

Bonus income must be identified by reviewing each paystub thoroughly, including current earnings and YTD sections. Bonuses may not always be clearly labeled and can appear as terms such as SPIFF, INCV, WC Bonus, Q-INC BNS, MyShare, incentive pay, or similar employer-specific titles.

To determine how bonus income is handled, establish:

• Type of bonus (sign-on, performance, incentive, etc.)
• Frequency of receipt (one-time, periodic, or per-pay-period)
• Likelihood of recurrence during the certification period

This must be confirmed through household interview or employer verification, when unclear, and fully documented in case notes.

Non-Recurring Bonus

• Includes sign-on bonuses
• Do not include in ongoing income calculation
• If combined with regular wages, subtract before calculating gross income
• Counted only as a resource in the month received

Recurring Bonus

• If received consistently: Include directly in gross income (treated like regular wages, similar to recurring overtime) (e.g., monthly/quarterly/annual)
• Remove bonus from gross wages if included in check
• Calculate separately to get monthly amount: Example: annual bonus /12
• Add as separate income source in MICAL

Different frequency than regular wages

• If bonus timing differs from wages (e.g., bi-weekly pay + monthly bonus): Subtract bonus from gross wages. Convert bonus into monthly anticipated amount. Add as separate income source in MICAL to avoid overcounting

NOTE: Due to variability in payroll systems, no special pay item should be assumed without verification. Always confirm when uncertain and ensure consistent documentation to support the income determination.

For additional information:

Earned Income – Irregular Seasonal

50-7-046 – eff 9-15-21 Converting to monthly income.doc

50-7-022 – eff 10-1-25 Income exclusions.doc

Key Elements of Pay Stubs | Quest

Missing Pay Stub Calculator | Quest

Finding Missing Pay Stubs | Quest

Income – Wage Earner Tips and Special Pay | Quest

Income – Special Pay | Quest

Bonus Income Scenario Flowchart | Quest

Bonus Income Reference Guide | Quest

Income – Bonus Income Examples | Quest

Income – Bonus Income Determination & Calculation | Quest