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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |103 Effective Month: July 2025 5.65% or .0565 for paystubs issued in 2011 and 2012 only) and compare to the FICA tax withheld (if itemized, include the Medicare tax with FICA). x = Gross wages from check stub SS/Medicare Tax Rate Expected Tax • If the actual amount withheld is within cents of the expected tax amount, consider them the same and use the gross wages shown on the check stub. • If FICA and Medicare tax withheld is less than the expected amount, use the following formula to compute countable wages: x = Social Security/Medicare Tax from Pay Stub Multiplier* Countable Wages *Multiplier = 13.071 for paychecks issued in 2010 and 17.699 for paychecks issued in 2011 and 2012 only. Example: A June 2010 monthly pay stub reflects gross wages of $999.94, a deduction for FICA/Medicare taxes of $68.85 (does not equal 7.65 percent of the gross wages) and a $160 voluntary deduction for health insurance. The employer confirms the company contributes $100 per month to fund basic benefit levels under a cafeteria plan that offers a variety of insurance coverages. The $100 that the employer contributes toward benefits under a cafeteria plan is not wages. Also, the employer confirms the employee voluntarily pays $60 for additional benefits. The specialist could use the check stub and contact with the employer to determine and document countable wages of $899.94 ($999.94 - $100 employer contribution) or use the formulas above: $999.94 x .0765 = $76.50 (FICA actually withheld is less) $68.85 x 13.071 = $899.94 200A.09.04 WAGE ADVANCES AND DEFERRED WAGES Wage advances are payments by an employer to an individual for work to be done in the future. An advance is wages in the month received.

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Page 103

Official source

MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |103 Effective Month: July 2025 5.65% or .0565 for paystubs issued in 2011 and 2012 only) and compare to the FICA tax withheld (if itemized, include the Medicare tax with FICA). x = Gross wages from check stub SS/Medicare Tax Rate Expected Tax • If the actual amount withheld is within cents of the expected tax amount, consider them the same and use the gross wages shown on the check stub. • If FICA and Medicare tax withheld is less than the expected amount, use the following formula to compute countable wages: x = Social Security/Medicare Tax from Pay Stub Multiplier* Countable Wages *Multiplier = 13.071 for paychecks issued in 2010 and 17.699 for paychecks issued in 2011 and 2012 only. Example: A June 2010 monthly pay stub reflects gross wages of $999.94, a deduction for FICA/Medicare taxes of $68.85 (does not equal 7.65 percent of the gross wages) and a $160 voluntary deduction for health insurance. The employer confirms the company contributes $100 per month to fund basic benefit levels under a cafeteria plan that offers a variety of insurance coverages. The $100 that the employer contributes toward benefits under a cafeteria plan is not wages. Also, the employer confirms the employee voluntarily pays $60 for additional benefits. The specialist could use the check stub and contact with the employer to determine and document countable wages of $899.94 ($999.94 - $100 employer contribution) or use the formulas above: $999.94 x .0765 = $76.50 (FICA actually withheld is less) $68.85 x 13.071 = $899.94 200A.09.04 WAGE ADVANCES AND DEFERRED WAGES Wage advances are payments by an employer to an individual for work to be done in the future. An advance is wages in the month received.