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MS 5660

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Volume 2 - Supplemental Nutrition Assistance Program – (SNAP) MS 5660 - R. 2/1/11 – OMTL - 380 Converting Income

Income is converted to a monthly amount using one of the following methods:

A. Take the following actions to determine a representative monthly amount for stable or fluctuating income:

1. Verify the income from all pay periods in the last 2 calendar months.

a. If the household does not have verification of income from the last 2 calendar months, request they provide verification that is representative of their anticipated income.

b. Document the amount, the expected date of receipt, how the amount was determined, and why consecutive weeks were not used for any anticipated income, along with the documentation of previous income. When all attempts to verify income have been unsuccessful because the income provider fails to cooperate with the household and/or the worker or no other source of verification was available, determine an amount to be used based on the best available information. Document the method used to determine any unverified amount, including efforts made to obtain the missing verification.

2. Total the income from all provided pay periods and divide by the number of pay periods to establish the representative weekly or bi-weekly payment amount.

3. Multiply the representative payment amount by 4 1/3 if weekly and 2 1/6 if bi-weekly to determine the monthly income amount used in determining household eligibility and level of benefits.

4. Document the method used to establish a representative pay period, including dates and amounts of wages verified.

B. When the household's income is unstable, use the actual amount received or anticipated to be received when a full monthly amount is not anticipated due to terminations, layoffs, suspensions. Do not determine a representative payment amount and do not multiply by 4 1/3 or 2 1/6 for irregular income.

C. If a household derives its income by a verbal or written contract, annualize the income, provided the income is not received on an hourly or piecework basis. Annualize the income beginning with the first month payment is received.

Example 1: Contract stipulates $10,000 for one year. (This income is annualized.)

Example 2: Contract stipulates $10,000 for one year and is based on an hourly rate. The employee’s contract is based upon the number of hours expected and the hourly wage agreed upon to determine the annual gross.