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SNAP CERTIFICATION MANUAL – SECTION 5000 5700 Unearned Income 5716 Severance Pay Received in Installments

received, land rent is considered to be contractual income and will be annualized as instructed in SNAP 7519. In some situations, an individual will live in a house owned by someone else and will make the payments on that house in lieu of a rental payment. In situations like this, the house payment will be considered rental income to the owner. All allowable costs of doing business will be excluded from the gross amount of the house payment before it is added to the owner’s SNAP budget.

5716 Severance Pay Received in Installments SNAP Manual 01/01/00 Severance pay is an allowance or income payable to an employee upon termination of employment. Severance pay is usually based upon length of service. Severance payments designated to be paid in monthly installments are considered unearned income in the month(s) received. If, however, a terminated employee receives a lump sum severance payment, the severance must be counted as a resource. (Refer to SNAP 4950 for handling lump sum severance payments counted as a resource.)

5717 Sick Pay SNAP Manual 01/01/00 Sick pay not paid directly by the employer but paid through an insurance company will be counted as unearned income. See SNAP 5508 for additional information. 5718 Social Security Benefits (SSA) SNAP Manual 01/01/00 Social Security Benefits are monthly checks paid to retired or individual with disability based upon contributions the individual made while employed. Social Security Benefits are also payable to the individual’s spouse and/or children in particular instances. (Social Security benefits are rounded down to the nearest dollar by SSA prior to payment.) Social Security benefits are counted as unearned income. A full description of the criteria for receipt of SSA may be found in the Unearned Income Appendix.