Page 141

Child Care Assistance Program Policy Manual Issued 07/2023 Earned/unearned income 6.6 Earned income Earned income is income that results from work, effort, or labor. Use gross earned income for income calculations. Gross earned income is income from employment before any payroll deductions. Gross earned income includes 401K contributions, all insurance premium payments on the pay stub and pre-tax medical/dental accounts. CCAP allows for certain income deductions. See Chapters 2 (Glossary) and 6.18 (Income Deductions). Earned income includes: • Wages/salaries (including overtime and bonuses). See Chapter 6.15.21 (Annualizing work bonuses and overtime pay). • Paid vacation or sick leave. • Tips/gratuities. • Self-employment income. See Chapter 6.6.5 (Self-employment income). • Commissions. • Severance pay based on accrued leave time. • Royalties. • Honoraria. • Other profit including: 1) Uniform, mileage and meal allowances if federal income tax is deducted from the allowance. 2) Incentive payments from work or training programs. 3) Military pay or wages for members of the United States armed forces. Pay earned while in a combat zone is not counted. Unearned income Unearned income is a payment a family member did not expend individual effort or labor to receive. See Chapter 2 (Glossary) for the definition of unearned income. Use gross unearned income for income calculations. Unearned income includes only: • Cash assistance benefits, including, but not limited to: • Cash portion of MFIP • MFIP Housing Assistance Grant • DWP • Cost effective insurance reimbursement from Medical Assistance • Minnesota Supplemental Aid • General Assistance • Refugee Cash Assistance. • Interest or dividends from investments and savings. • Capital gains as defined by the Internal Revenue Service from any sale of real property.