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CAPS Policy – Income Calculations No.: CAPS/00-8 Effective Date: 10/01/2016 Revised: 10/06/2025 Revision Effective: 10/06/2025

CAPS Policy Manual

Page 52 of 109 8.8.2 CAPS will review all earned and unearned income of adults in the family unit received within the four weeks prior to determination. The review will be based on the first valid verification documents submitted by the parent, provided the documents accurately reflect the family's current income. If income is received on a quarterly or annual basis, CAPS will review the most recent statement of earnings.

8.8.3 Income received in a manner other than a monthly basis must be converted to a monthly income. The following guide will be used: How Often Paid Calculation Weekly Multiply by 4.3333 Bi-weekly (every other week) Multiply by 2.1666 Semi-monthly (twice a month) Multiply the amount by 2

8.8.4 The monthly amount will then be converted to an annual amount by multiplying the monthly income by 12. Once calculated, the family’s gross applicable income is compared to the maximum allowable income chart (Appendix A).

8.8.5 The family meets the CAPS income eligibility requirements if the gross applicable income does not exceed the maximum income for the size of the family unit. If the family’s gross applicable income exceeds the maximum limit, the application may be denied.

8.8.6 The following table describes the differences between regular and irregular income: Type Description Calculating Income Regular A consistent pattern of pay for six consecutive months of earnings. A. CAPS will review the most current four weeks of pay to determine if pattern of pay is consistent. If consistent, the average of the current four weeks can be used to determine regular income. If inconsistent, CAPS will review pay for the previous six months to determine consistency. B. If the most recent pay periods include inconsistent income, that make the income non-representative of the parent’s normal earnings, those pay periods may be disregarded, especially when pay or hours are inconsistent. The remaining pay periods that are representative can be used to calculate an average of the parent’s monthly income. C. If none of the recent pay periods are a representation of the parent’s normal earnings, an average pay calculation should be used to determine gross income. CAPS staff will review up to six previous months of pay to determine average pay. Irregular Periodic fluctuations where earnings or payments may not reflect an accurate projected annual income when determining eligibility based upon the previous four weeks of income.

A. When the parent’s income varies too much to accurately project, CAPS staff should calculate the average of all the pay stubs from the past six months. This average would be used for the parent’s income. B. To obtain the average pay, add all earnings for the past six months and divide by the total number of pay periods within that six-month timeframe. C. To obtain average monthly amount, multiply average income by the appropriate pay frequency. D. The monthly amount will then be converted to an annual amount by multiplying the monthly income by 12. E. Once calculated, the family’s gross income is compared to the maximum allowable income chart (Appendix A). F. The family meets the CAPS income eligibility requirements if the income is less than or equal to the maximum income for the size of the