Page 256

2810.15.00 TIPS

The amount of tips reported by the employee is included as earned income. Many times, an employer will include on the pay stub of the employee an amount the employer must report to the IRS for tax purposes. This is an allocated amount which may or may not be considered as the amount actually earned or received by the employee. The tip amount reported by the employee can be accepted unless questioned.

In some instances, the employee reports actual tips to the employer. In this instance, the employer can verify actual tips earned. The individual should keep records on a daily basis if the tips are not reported to the employer, so this information can be used for verification.

NOTE: The eligibility worker should be aware that when the hourly wage is less than the minimum wage, the possibility of tips may exist. 2810.20.00 SHELTERED WORKSHOP EARNINGS

Any payments from a sheltered workshop are included as earned income. A sheltered workshop is a special workshop offering limited employment experience for the mentally or physically handicapped. 2810.25.00 EARNINGS OF CHILDREN (S)

The earned income of children who live with their parent(s), who are 17 years old or younger, and attend elementary or high school (including those attending GED or home-school classes recognized by the State) is exempt.

This includes living with a natural, adoptive or step- parent or living under parental control of an AG member other than a parent. In order for the income to be exempt, the child must be shown as under the care and control of another household member, in the eligibility system.

Their income is excluded even during temporary interruptions in school attendance due to semester or vacation breaks, provided the child's enrollment will resume following the break.

If the child's earnings or the amount of work performed cannot be differentiated from that of the other AG members, the total earnings shall be prorated equally among the working members and the child's share excluded.

If it is determined that the child is attending school, the income will be exempt, and verification of that child’s income is not required at application point. It will be necessary to verify the exemption status at the next certification point. 2810.25.05 EARNINGS OF CHILDREN (C)