Page 45

Chapter: 2400 Budgeting Income Program: MSSI, SFP 40 2440.0504 Earned Income (MSSI, SFP) A four week average is used when earned income is received more frequently than monthly; for example, weekly or biweekly. When income is received semimonthly, the computation is averaged based on the most recent available one month of pay (two semimonthly payments). When the income is received monthly, use the most recent one month pay if representative.

When using an average, use only the weeks in the average that represent the ongoing pattern of employment. For example, if the employee is out sick one week and received no pay, do not use that week in the average. 2440.0505 Less than a Four Week Average (MSSI, SFP) When a shorter than four week average is to be computed, use the number of weeks available up to four at the new amount, to compute the revised average. When the applicant/recipient has just begun employment and only one full week's earnings are available or only the wage and hours are known, compute the budget based on the best information available. Contact may be made with the employer if necessary to confirm employment information. The reason for the less than four week average must be clearly reflected in the case recordings. 2440.0506 Significant Breaks in Employment (MSSI, SFP) If there are significant breaks of one week or more without pay and the breaks are not expected to recur at four week intervals, the breaks will be disregarded in computing the average. Such a break without pay might be due to illness, a death, vacation, employer leaving town, and the like. When such breaks are part of the pattern of the applicant/recipient's employment, the weeks are taken into consideration in computation of the average (for example, construction workers). 2440.0507 Partial Week (MSSI, SFP) When the applicant/recipient begins employment by working only a partial week, thus having lower wages for that week only, the initial partial week should not be included in the average used to compute the budgeted income. Additionally, if a partial week was worked due to illness, a death, vacation, etc., and these factors are not anticipated to recur within the future, these partial weeks should be omitted from the average as they are not reflective of future earnings. In this situation, the average may be based on three weeks or less. 2440.0508 Basis for Average (MSSI, SFP) Requirements for documentation or verification of averaged income are the same as with any income as provided in Chapter 1800. It is important that the eligibility specialist base the average computation for ongoing employment on the actual gross income the applicant/recipient received for the particular time period, rather than on estimated wages and hours to be worked. When the applicant/recipient begins new employment, the eligibility specialist must determine whether the particular type of employment will result in irregular income. Although the employer may indicate on the documentation that the applicant/recipient is to work a set number of hours or days for a certain wage, the applicant/recipient may actually work varying hours. Base the initial budget on the amount the applicant/recipient is supposed to earn, usually one week's salary, or the employer's statement of wages. 2440.0509 Income More Often than Monthly (MSSI, SFP) The following procedure to calculate the average of earned or unearned income received in varying amounts more frequently than monthly is the same for all programs:

1. Add the gross income amounts for the past four weeks to get the total. 2. If income is received weekly, add four pay periods and divide by four to get the weekly average. 3. If income is received biweekly, add two pay periods and divide by two to get the biweekly average.