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SNAP CERTIFICATION MANUAL – SECTION 5000 5500 Included Income 5506 Diverted Wages

If the period specified on the contractual agreement is for less than a year, the income will be prorated over the contract period. (This statement will not apply to schoolteachers or administrators whose annual income is paid in less than 12 months.) Land rent received on an annual basis is also considered contractual income. See SNAP 5715 since this is usually considered unearned income.

5506 Diverted Wages SNAP Manual 01/01/00 Diverted Wages are wages which are legally obligated and payable to the household, but diverted by the employer. Situations where diverted wages should be counted as income include, but are not limited to: 1. The employer owes wages to a household, but diverts them instead to pay for a household expense such as a house payment, doctor bills, utility expenses, etc; OR 2. The employer holds money out of the paycheck as a result of a garnishment. EXAMPLE: Mr. Smith is behind in his rent. The landlord agrees to let Mr. Smith work out his rent at $3.35 per hour by washing cars at the landlord’s used car lot. The rent is $150 per month. Mr. Smith actually works 50 hours. The landlord gives him a check for $17.50 which is the difference between the rent and the amount Mr. Smith has earned. Since this is money applied to the household expense which would otherwise be payable to the household, the caseworker will count $167.50 as earned income in the SNAP budget. $150 will be allowed as rent. Child support being withheld by the employer is deductible as instructed in SNAP 6550. The deduction may be allowed even if the child support is being diverted to pay an expense for the child’s household. For example, if part of the employee’s pay is withheld by the employer and used to pay his ex-wife’s rent in lieu of child support, the amount withheld would be deductible.

5507 Military Pay SNAP Manual 01/01/03 Payment for duty in any branch of the Armed Services including the National Guard or Army Reserve will be counted as earned income. The basic pay of some military service personnel is