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SNAP CERTIFICATION MANUAL – SECTION 5000 5500 Included Income 5502 Bonuses

5502 Bonuses SNAP Manual 01/01/00 Bonuses are monetary payments given to an employee by an employer in addition to the pay due to the employee. For example, if a farmer gives an employee a $500 cash gift at Christmas in addition to the employee’s regular pay, the $500 is considered a bonus. Only bonuses provided by an employer at approximately the same time and in about the same amount each year are annual bonus. For example, if a factory has a good year and gives all of its employees a one-time $100 bonus, the $100 payment will not be considered an annual bonus because no additional payments are expected. Conversely, if a factory routinely gives all of its employees a ham and a $100 bonus at Christmas, the $100 payment would be considered an annual bonus. Bonuses paid less frequently than yearly will be excluded as non-recurring lump sum payments. See SNAP 7523.1 for instructions on handling these payments.

5503 Treatment of Annual Bonuses SNAP Manual 06/01/05 Annual bonuses that can be reasonably anticipated will be counted as earned income in the SNAP budget. This may require the calculation of a variable budget as explained in SNAP 7523.3. The household’s certification period may be scheduled to end in the month before the household anticipates receipt of the annual bonus. This will allow the bonus to be counted in the month of receipt and deleted for any months remaining in the certification period.

5505 Contractual Income SNAP Manual 01/01/00 Employees who derive their annual income under contractual arrangements must have their income prorated over a 12-month period. A contractual arrangement exists if the employee and employer have a written agreement that stipulates, at a minimum, the annual or monthly salary. Individuals paid on an hourly or piece work basis will not have their income prorated over a 12- month period. The school income of schoolteachers and school administrators must be annualized.