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MEDICAL SERVICES – APPENDIX N, FAMILY MEDICALLY NEEDY RESOURCE AND INCOME LEVELS 02-24-16 Page 17 of 19 chart below shows for each pay frequency the appropriate multiplier for determining gross monthly earnings. Pay Frequency Multiplier Weekly 4.334 Bi-Weekly 2.167 Semi-Monthly 2 Monthly 1 More Often than Weekly None If the employee is paid more frequently than weekly (e.g., daily), the worker will determine the monthly gross for the latest calendar month by adding all the pay checks received in the month. In some situations, the above method of obtaining an average pay per pay period cannot be used because the client has not yet worked a full month, or a change has occurred within the past month which has affected current earnings. In these situations, another method which will give a more accurate reflection of the client’s earnings will be used to obtain an average pay per pay period. Therefore, the caseworker should carefully consider the method to be used to ensure that it will give the most accurate reflection of the client’s monthly earnings and document the case narrative accordingly. E. Computation of Earnings From Self-Employment Like employee earnings, the monthly amount of self-employment earnings which must be included in the budget is the Agency’s best estimate of earned income which will be available to the individual in a month or months. However, self-employment earnings are usually not as predictable as employee earnings and are often received less frequently than monthly. Therefore, in most situations, a time period longer than one month will be used to determine average monthly self-employment earnings. Costs directly related to producing the income are subtracted from the self-employment gross before the monthly earnings are included in the budget. Only those costs without which the income could not be produced may be subtracted. Such costs may not include depreciation, personal business and entertainment expenses, personal transportation, purchase of capital equipment and payments on the principal of loans for capital assets or durable goods. For room and board income, a standard $70 per roomer/boarder will be subtracted as the costs related to producing the income. 1. Income Received Less Frequently Than Monthly (Quarterly, Annually, Etc.) Income of this type may include farming (including soil bank and related diversion payments), cattle ranching, business, or any other type of self-employment enterprise in which the income resulting from work performed over a period of time is received at one time rather than during the period in which the work is being performed.