section-viii BUDGETING CONTRACT INCOME

Contract income is money paid to an individual, such as a teacher, based on a verbal or written agreement. 35 A. Prorate the contract income over the period the contract is intended to cover. Divide the contract amount by the number of months it is intended to cover. Enter this amount as actual income. It is not converted. Continue to count this income if the contract is in effect. EXAMPLE Teachers generally sign a 12-month contract with the school system by which they are employed. Divide the income specified in the current contract by 12 to determine the monthly gross income. Use 12 months to annualize income even if the teacher receives the income over only 10 months. If the income has been averaged over 12 months and the employment ends after he or she has been paid the full contract amount, continue to count the average monthly amount as income for the remainder of the 12- month period. This may also apply to other school employees. A. If the contract income is paid on an hourly or piecework basis, verify the income received during the base period. Use this income as a monthly amount. Do not convert the income. NOTE: For school employees not on contract, the case manager should read the end of the school year as a change in hours of employment. If they return to the same job at the beginning of the next school year, treat this as another change in hours of employment (not as a new job).