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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |105 Effective Month: July 2025 • W2s, if no other verification is available and the client alleges earnings will be about the same. Use of W2s should be restricted to situations where employment is sporadic or there are multiple or a long succession of employers. 200A.09.06 CONVERTING WEEKLY/BIWEEKLY WAGES When wages are paid on a weekly or biweekly basis, enter into MEDS as weekly or bi- weekly. MEDS eligibility system will convert wages to monthly amounts. The last pay date may be required for automatic system calculations. 200A.09.07 ESTIMATING FUTURE WAGES In estimating future wages, consider any recent past work history, unless inappropriate to the current situation, e.g., work stopped due to retirement or disability. Try to establish a logical wage pattern by reviewing the rate of pay, hours worked per week, and number of pay periods in each month with the recipient. In deriving an estimate, be alert to individuals who perform seasonal work such as school bus drivers. If an estimate cannot be established, contact the employer for information. Use this information along with worker judgment to arrive at an estimate. Do not average. Document the case to support the estimate. 200A.09.08 NET EARNINGS FROM SELF EMPLOYMENT (NESE) NESE is the gross income from any trade or business, less allowable deductions for that trade or business. NESE also includes any profit or loss in a partnership. NESE is determined on an annual basis. The chart below indicates the steps and procedures to determine NESE. STEPS PROCEDURE Determine monthly NESE Divide the entire taxable year’s NESE equally among the number of months in the taxable year, even if the business: • Is seasonal • starts during the year • Ceases operation before the end of the taxable year; or • Ceases operation before initial application. Offset net losses Any verified net losses from self-employment are divided in the same way as net earnings. Then each month’s net loss is deducted from any other earned income of the individual or