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Chapter: 1800 Income Program: FS 5 1810.0200 EARNED INCOME (FS) Earned income includes all gross (before taxes or any other deductions) wages and salaries from performance of work (including wages deferred that are beyond the individual's control). Wages are included as income at the time they are received rather than when earned.

Wages are considered earned income even when withheld at the request of the employee or provided as an income advance on income expected to be earned at a future date. Advances are different from loans since they are paid in exchange for anticipated services or labor.

An individual is considered employed when engaged in a business, occupation or service for cash paid by another person, group of persons, or company. Wages or paid salaries received after employment has ended are considered earned income such as payment for accrued leave.

Employer-provided sick pay is earned income as long as the individual plans to return to work after recovering and is still considered an employee. Sick pay is a continuation of salary with normal payroll deductions and is not to be confused with benefits, such as Workers' Compensation, that are considered unearned rather than earned income.

Note: Severance pay is considered unearned income. (Refer to 1810.0912) 1810.0201 Wages Held by Employer (FS) Wages (even if illegally) held by the employer are not considered as income until the wages are received.

Exceptions:

1. The assistance group (AG) anticipates an advance, or 2. The AG is expected to receive wages previously withheld that were not previously counted.

Advances on wages may count as income in the month received or may be averaged over the certification period in which received, if reasonably anticipated.

Example: A school employee has a base salary of $10.80 hourly. The union policy states that the individual must receive paid vacation and holidays. The employer withholds part of the base salary (regular pay) to be paid at a future date when the individual is on vacation or holiday. 1810.0203 Striker Income (FS) The striker's income before the strike is compared to the striker's benefits. The larger of the two amounts is included as income. If pre-strike earnings are included, earnings deductions shall be allowed. If strike benefits are included this would be counted as unearned income. 1810.0204 Sale of Blood or Plasma (FS) Income derived from the sale of blood or plasma is included as earned income.