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Child Care Assistance Program Policy Manual Issued 10/2019 Annualizing work bonuses and overtime pay 6.15.21 Bonuses and overtime pay are wages. They may be considered ongoing, temporary or lump sum income. Ongoing work bonuses and overtime pay If the work bonus or overtime pay is regular or recurring, annualize it for 12 months. For example: • A parent receives overtime pay consistently every paycheck. Annualize the overtime for 12 months. • A parent receives a regular quarterly bonus. Annualize the bonus using “Quarterly” in the “Amount Frequency” field on the Earned Income window in MEC². Temporary work bonuses and overtime pay If the overtime or bonus income is for a specific period of time, that is available at the application or redetermination period, annualize it as temporary income for the specific time period. If the income is received during the 12-month eligibility period and will put the family’s income over 85% SMI, annualize the income as temporary income for the specific time period. If the overtime income or bonus income is for a specific period of time expected to be received later in the 12- month eligibility period, annualize as expected future income. See Chapter 6.15 (Annualizing income). Lump sum work bonus and overtime pay If the work bonus or overtime income is for one-time only, is infrequent or is irregular, annualize it as lump sum income when received. Legal Authority Minnesota Statutes 119B.09 Minnesota Statutes 119B.011 Minnesota Statutes 256P.01 Minnesota Statutes 256P.06 Minnesota Rules 3400.0170