Fluctuating Income

Mutually agree upon a period of past time that provides the most accurate indication of future income if income changes noticeably from month to month. Under these circumstances, a two month time period is recommended although a shorter or longer time period may be used to provide a better projection of income.

Note : If income fluctuates seasonally, it may be appropriate to use the most recent season comparable to the certification period, rather than the 30 days as one indicator of anticipated income. Exercise caution in using income from a past season as the income may fluctuate from one season to the next.

For income that varies with no set pattern and is expected to continue in this manner, review the participant’s income for at least the past 30 days and discuss anticipated changes to hours worked or rate of pay to project the monthly amount of income to be budgeted. If no change in rate of pay has occurred or is expected and all pay periods being used are indicative of the applicant’s income pattern, average wages for several pay periods to project income. When a change in rate of pay has occurred or is anticipated, use the average number of hours worked times the new rate of pay to provide the best projection of income.

If the participant works the same number of regular hours each pay period but began working various amounts of overtime prior to the application, determine with the participant if overtime is expected to continue. If the overtime is expected to continue, count it in the income projection. If the participant does not expect the overtime to continue, discuss with the applicant why the change is expected.

When a reasonable explanation is provided and the overtime is now stopping, budget the overtime as irregular income; and the eligibility system will not count the overtime in the income calculation. When contacting an employer to verify overtime, ask if there is an anticipated change in overtime being offered. As a rule, employers cannot anticipate how much overtime an individual will work, however, they will know if there is some change in business and whether or not they will be offering more or less overtime to their employees or certain groups of employees.