CA Payment Standard Test

The CA payment standard test is used to approve, deny, or close CA and Two Parent Employment Program (TPEP) benefits. The CA payment standard test is conducted for all CA determinations.

FAA compares the CA budgetary unit size and income to the CA income maximum limit for purposes of determining prospective eligibility(g) . For a budgetary unit to receive benefits, participants are required to meet prospective eligibility requirements.

Prospective eligibility includes meeting the needy family criteria and having less income than the payment standard for the size of the budgetary unit living in the home.

The countable income minus CA earned income deductions cannot exceed the maximum benefit amount an eligible budgetary unit with no income would receive. This amount is 36% of the 1992 Federal Poverty Level (FPL), based on the A1 or A2 CA Payment Standard. (See CA Payment Standard (A1/A2) for the difference between the A1 and A2 CA Payment Standards.)

The CA payment standard is used when computing prospective eligibility based on the payment limit. The benefit payment amount is computed automatically by completing all of the following:

● The appropriate CA earned income deductions are subtracted from the gross countable income to determine the net income.

● Net income is subtracted from the CA payment standard.

● The remaining figure is one of the following net unrounded payments:

When the net unrounded payment is at least one cent, the budgetary unit is prospectively eligible.

When the net unrounded payment is zero, the budgetary unit is not prospectively eligible.

NOTE CA eligibility is based on income standards including the Needy Family Test and the CA Payment Standard Test. For current income limits, see FAA6.J02A titled CA Income Standards.

Participants are required to complete the CA renewal process for continuing eligibility. (See CA Renewal Requirements and Time Frames for additional renewal information.)

In addition to meeting income and other eligibility factors, participants are obligated to specific reporting requirements.