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MEDICAL SERVICES – APPENDIX N, FAMILY MEDICALLY NEEDY RESOURCE AND INCOME LEVELS 02-24-16 Page 16 of 19 latest 2 check stub will be required. If the client does not have the required verification, then verification from the employer will be required.  NOTE: If retroactive coverage is requested, actual income will be verified for each retroactive month. EXCEPTION: For cases in which the individual has recently started employment and 60 days of verification is not available, the caseworker will compute the income from the best information available. Verification of all, if any, paychecks already received by the individual should be obtained and/or an employer’s statement of anticipated earnings (e.g., hourly wage, number of hours expected to work/week, etc.). Verification of earnings from self-employment will be by Federal Income Tax Return, purchase, sales, and account books or by any other source which establishes the source and amount of income. As soon as an individual is known to be engaged in a farming, business, or other self-employment enterprise, he will be advised of the necessity of keeping accurate records so that his income can be determined. Verification of in-kind earned income (e.g., free rent, groceries, etc.) will be obtained from the employer. The verification must include the value of the in-kind benefit (e.g., the rent amount the client would otherwise pay, the cost of groceries provided, etc.) and how often it is provided (e.g., monthly, weekly, etc.). If the amount fluctuates from week to week or month to month, then verification of the in-kind earned income paid during the last 2 months should be obtained. D. Computation of Earnings Received as an Employee The gross earned income amount which must be included in the budget is an estimate of the amount which the individual can reasonably be expected to have available in the next month(s). The estimate of monthly earnings is usually based on the assumption that the earnings received in the most recent month are reflective of the earnings which will be received in the current and following months. However, in some situations, this assumption will not hold true. Therefore, the estimate of monthly earnings must be based on the latest information which is available at the time the client is interviewed, or at the time verification of earnings is requested in writing. In most situations, the estimate will be an average of the latest months’ gross earnings. In situations, though, in which the client started employment within the last month, or in which a change (e.g., pay raise, change in number of hours worked, etc.) has occurred within the last month, another method which more accurately reflects the current earnings will be used. The first step in computing monthly gross earned income of an employee is to determine the average gross pay per pay period. Any advance EIC payments paid to the employee with his regular earnings will be excluded. The average gross monthly earnings are then determined by multiplying the average pay per pay period by the appropriate multiplier for the pay frequency (e.g., weekly, bi-weekly, etc.). The