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set days of the month, such as paid every other Tuesday) *# days/week worked: This is the number of days in a calendar week that a person works, regardless of the pay schedule. • Multiply average number of days per pay period by average number of hours worked per day to determine the number of units per frequency (if pay is by the hour). • Then multiply this figure by rate of pay to determine income per pay period. • Multiply the income per pay period by the number of paydays in the month to determine the monthly income. 5. Prorating over the period intended to cover method is used for contractual, self-employment, or other income expected to cover a period longer than one month or received regularly but less often than monthly. Prorating over the period intended to cover involves dividing a total yearly income by 12 months (for self-employment) or dividing a regular periodic payment by the number of months until the next payment is received (income other than self-employment). a. Divide a payment received bi-monthly (every second month) by two b. Divide a payment received quarterly (four times a year) by three (there are three months in a quarter). c. Divide a payment received semi-annually (twice a year) by six. d. Divide a payment received annually (once a year) by 12 (this is also referred to as “annualizing”). 6. Annualizing income is used to prospectively budget income for contractual or self-employment. The contract for contract income must be evaluated on a case-by-case basis. A key factor in determining whether income is contractual is whether the contract is for a set dollar amount even if an hourly rate is indicated. If the household receives its annual income in a period of time shorter than a year by contract or self-employment, the income is averaged over a 12- month period provided the income from the contract is not received hourly or on a piecework basis. If the contract work is not the household's annual income, the income is prorated over the period it is intended to cover. SEE REFRESHER TRAINING: Course: Prospecting Income https://dphhselearn.org

Effective Date: September 13, 2022