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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200B – Income: MAGI Categories Page |139
Effective Month: July 2025
200B.03.02 SPECIFIC INCOME TREATMENT – WORK-RELATED LUMP SUM PAYMENTS
Lump sum payments generally count as income in the month received, whether the payment is recurring or nonrecurring. However, if the lump sum is work-related, such as bonus or commission payments and some contract employment, a determination is needed as to whether the payment is expected to be: 1. Recurring and counted as regular earnings for an intended period, or 2. Non-recurring and counted in the month of receipt only. Decisions must be made on the individual’s past employment history and discussion with the individual about future expectations. For income paid other than at regular intervals, past income patterns are the best guide to future payments unless a change can be supported. Bonus payments – a bonus payment is usually compensation over and above the amount of an employee’s base pay and is usually at the discretion of the employer. A random bonus payment that cannot reasonably be anticipated to reoccur is treated as a lump sum payment, i.e., it is earned income in the month received. However, if the bonus payments can reasonably be anticipated as part of earnings paid, divide the payment over the period it is intended to cover and count as part of monthly earned income. If an employer historically pays bonus payments at pre-determined intervals, treat as recurring earned income and prorate over the period it is intended to cover. Commission payments – commission is a sum of money that is paid to an employee upon completion of a task, usually selling a certain amount of goods or services.
It can be a percentage of sales, or a flat dollar amount based on sales volume. The payments are earned income that is considered recurring, unless employment has terminated. Use past commission payments to reasonably predict future payments. If a bonus payment is tied to sales, it is also averaged over the period it is intended to cover. Contract employment – is earned income that may involve lump sum payments at the end of a contract period. If contract employment has ended, a determination must be made as to whether future contract work can reasonably be expected, based on past work history and discussion with the individual. When similar future contract employment is reasonably anticipated based on prior employment patterns, count the last contract payment as if recurring: