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1. All wages, salaries and tips for services performed as an employee. This includes wages held at the request of the employee, advances on income, and other taxable income received on a regular basis such as, Christmas bonus, profit sharing, etc. Certain food and beverage establishments allocate a certain amount of tips on the employee's W-2 form (Box 6); however, the employer withholds taxes based on the employee's reported amount of tips and not the allocated amount. Only the amount of

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tips reported by the employee rather than the allocated amount should be counted as income.Advances are distinguishable from loans in that advance wage payments are made in exchange for services or labor to be performed, while loans are made in exchange for repayments of the principle amount plus, in most circumstances, interest. Wages and salaries, as well as vacation pay received after employment ends (for example, the last paycheck as opposed to severance pay) will be considered earned income when it is received in more than one installment. Severance pay is not earned income. See SEVERANCE PAY in this chapter. Sick pay provided by the employer is considered earned rather than unearned income if the employee is going to return to work when recovered and is still considered an employee by his employer. Generally, this is a continuation of salary with normal payroll deductions. Sick pay or disability benefits from a source other than the employer, such as an insurance company, is unearned rather than earned income even if the employee intends to return to work. Money which is diverted from an employee s gross earnings through a cafeteria plan to pay certain expenses such as child care or medical expenses is counted as income. 2. The total income, after appropriate exclusions, from a self-employment enterprise, including the total gain from the sale of any capital goods or equipment related to the business. Payments from a roomer or boarder, except foster care boarders, shall be considered a selfemployment enterprise regardless of the number of hours spent weekly in providing the service. Ownership of rental property shall be considered a self-employment enterprise. However, income derived, less the cost of doing business; from the rental property shall be considered earned income only if a member of the assistance unit is actively engaged in MISSISSIPPI [ INCOME: EARNED INCOME ]

Revised 11 - 01 - 11