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3. Once approved for the award, participants who remain in the same childcare program do not need to reapply in order to receive future installments. The salary supplement is earned income. Participants would receive an IRS-1099 form at the end of the year if they received $600 or more from Child Care Services Association during the calendar year.

4. The beneficiaries that are approved for the Child Care Wages Project will receive a letter stating their approval to participate in the project. The beneficiary should report this approval to participate as a change in income within ten calendar days of receipt of the approval letter. The case should be flagged to review in the month after the six-month commitment period ends. Earnings cannot be budgeted until the beneficiary receives the first supplemental check. Since this income is received after the time period it supplements, it can only be budgeted prospectively based on the amount of the first supplement received. The six-month supplemental payment is divided by six to determine the countable monthly income to budget. Refer to V. for budgeting procedures.

J. Royalties, (Also see VIII. FF. below)

1. Royalties include compensation paid to the owner for the use of property, usually copyrighted material (e.g., books, music, and art) or natural resources (e.g., minerals, oil, gravel or timber). Royalty compensation may be expressed as a percentage of receipts from using the property or as an amount per unit produced. Royalties are earned income when they are received:

a. As part of a trade or business, or

b. By an individual in connection with any publication of his/her work.

2. Verify that payments received meet the definition of royalty by examining the agreement between the parties involved or documents in the a/b or financially responsible person’s possession. Some documents concerning royalty payments will provide both a gross and a net payment amount. When the difference between the gross and the net figures is due to income taxes withheld or windfall profit tax deductions, use the gross figure when determining amount of income to budget. If the agreement or documents are unclear, unavailable, or informal, contact the company or source of the payment.

3. Include in the case record copies of documents and/or information provided by the payment source including the reason the royalty is being received, amount(s) including the type of tax(es) if any, which are being deducted, and the frequency of receipt of payments.