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MS 5650 [4]
work overtime on others. Individuals should be interviewed thoroughly to ensure this income is representative of anticipated ongoing income.
3. Wages Withheld
Consider wages that are withheld as follows:
a. Count wages held at the request of the employee as income in the month the wages would normally have been paid by the employer.
b. Count wages held by the employer that were not previously counted as income when received by the employee.
c. Count wage advances in the month received and not in the month the advances are deducted by the employer.
d. Count garnished wages and other wages withheld by court order, such as child support payments, as income to the wage earner.
e. Wages held by the employer as a general practice, even if in violation of law, are not considered income.
4. Contract Wages
Not every school employee is a contract employee. Refer to items a. or b. for treatment of income for school employees.
a. Annualize income, which is governed by a verbal or written contract or payment agreement. This applies even if the income is received in less than 12 months. Begin to annualize income with the first month's payment.
Example 1: Contract stipulates $10,000 for one year. This income is annualized. The system should count $833 per month.
Example 2: Contract stipulates $10,000 for one year and is based on an hourly rate. The employee’s contract is based on the number of hours expected and the hourly wage agreed upon to determine the annual gross. The employee will not receive any more or less than the total gross, no matter how many hours they work. It is a set, agreed- upon amount and will not go up or down without another contract. This income is also annualized. The system should count $833 per month.
b. Do not annualize income that is received on an hourly or piecework basis that is not governed by a written or verbal contract.
Example: Contract stipulates the individual is to be paid an hourly amount with no annual limit established. This income is not annualized but is prorated over the period of time the income is intended to cover.