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SNAP CERTIFICATION MANUAL – SECTION 7000 7500 Step 2 - Gross Income Eligibility 7519 Contractual Income

employment income and expenses declared on the tax return. For example, a man owns a log truck. He hauls logs throughout the year whenever work is available and/or the weather permits. His earnings for the previous year may be averaged to anticipate his earnings for the current year. If the income tax return is not available or does not reflect the current income, the household may furnish other verification. See SNAP 5600 for complete instructions on calculating income from a self-employment enterprise.

7519 Contractual Income SNAP Manual 07/01/98 Employees who work under a contractual arrangement must have their income prorated over a 12-month period. A contractual arrangement exists if the employee and employer have a written agreement which stipulates, at a minimum, the annual or monthly salary. Individuals who are paid on an hourly or piecework basis will not have their income prorated over a 12- month period. School teachers and school administrators are contract employees. Since arrangements vary from school district to school district, school employees other than administrators or teachers may or may not be considered contractual employees. The income of school employees who do not work under a contract will not be annualized. The income of employees who have a contract will not be annualized if the contract does not specify a yearly or a monthly amount. For example, the income of school cafeteria workers who are paid by the hour will not be annualized. Contract income that is not the household’s annual income and is not paid on an hourly or piecework basis will be prorated over the period the income is intended to cover. EXAMPLE: A man signs a contract to complete a specific job at a plant. The terms of the contract call for the man to receive $4,000 for the job and to complete the job in three months. He is to receive $2,000 when he begins the job and $2,000 when he completes the job. The $4,000 payment will be prorated over the three-month period covered by the contract.