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CCDF POLICY AND PROCEDURE MANUAL Effective 10/14/24. 27

Earned Income Adjustments

The following types of income should be deducted from gross wages: ➢ Advance Pay is counted when received and not when deducted including salary, commissions, sick or vacation pay. ➢ Health/Dental/Vision Insurance Benefits which are considered part of gross income are not counted when there is an opposing deduction. ➢ Employment reimbursements are monies paid for out-of-pocket expenses related to employment and reimbursed on an Applicant or Co-Applicant’s pay stub. These payments could include reimbursement for mileage, per diem, meals, supplies, etc. ➢ Housing and Food Allowance when included in Gross Wages. ➢ Employer contribution to retirement accounts such as 401K, deferred compensation, or pension accounts.

APPROPRIATE SOURCES TO VERIFY EMPLOYMENT REIMBURSEMENTS ➢ Documented on the Applicant or Co-Applicant’s pay stub. ➢ Written declaration from the Applicant or Co-Applicant for line items that are uncategorized on the pay stub.

Earned Income (Tipped Employees)

STEPS TO DETERMINE COUNTABLE TIPPED INCOME • When determining wages for employees with documented tips on their pay stub or self-declared tips, the Applicant and/or Co-Applicant must complete a CCDF Tipped Employee Worksheet for the pay stub used for income determination during the current period. Cash paid individuals receiving tips are not required to complete the CCDF Tipped Employee Worksheet.

• The total wages on the CCDF Tipped Employee Worksheet for the current period must be equal to or greater than the total hours worked (based on pay stubs) multiplied by minimum wage. If total wages are less than minimum wage, then income is figured by using the following formula: Wages = Total Hours Worked X Minimum Wage.

Earned Income (Self-Employment) Self-employed earned income is revenue received directly from an Applicant or Co-