Fluctuating Income

(b) "Fluctuating income" means:

(1) Earned income that varies from month to month such as when an individual works varying hours, overtime, or on a piece work basis; or

(2) Unearned income that varies from month to month due to changes in frequency or amount.

(c) "Non-significant changes" means any temporary or short-term variations in the amount of earned or unearned income caused by a situation which is not ongoing.

(d) "Significant changes" means changes in sources or amounts of earned or unearned income which are:

(1) Expected to continue into the future ; or

(2) Short-term because it is caused by a situation which is not ongoing.

(e) The department of health and human services (DHHS) shall convert fluctuating income to a monthly amount pursuant to He-W 652.05 by averaging income for the most recent consecutive 4 weeks when such income represents a best estimate of future income pursuant to (a) above as verified by pay stubs or a statement from the employer.

(f) Income received during weeks with non-significant income changes pursuant to (c) above shall not be used to determine the average monthly amount.

(g) When the average monthly amount determined in (e) above does not represent a best estimate of future income pursuant to (a) above, the average monthly amount shall be determined as follows:

(1) Only data for weeks that accurately represent past earnings, up to a maximum of 8 weeks’ data, shall be included;

(2) The average weekly income shall be determined using the data from the weeks identified in (g)(1) above; and

(3) The appropriate multiplier under He-W 652.05 shall be used to convert average weekly income to a monthly amount.

(h) When income has been received for less than 4 consecutive weeks, the best estimate of future income pursuant to (a) above, shall be determined by computing a monthly average based on the actual number of weeks the income was received.

( i ) The following shall apply to self-employment income:

(1) If self-employment income is the only income received from employment in a 12-month period, it will be averaged over a 12-month period;

(2) If self-employment income is the only income received from employment in a period of fewer than 12 months, it will be averaged over the number of months it was received; and

(3) If self-employment income is not the only income received from employment, it will be treated as income in the months received and will not be averaged.

(j) The estimated average monthly gross earned income as defined in He-W 601.04(m), shall be used until the next redetermination of eligibility.

(k) The estimated average monthly gross earned self-employment income as defined in He-W 601.04(n), shall be used for one year.

Source. #12616, eff 8-30-18

PART He-W 853 RESERVED

PART He-W 854 EVALUATION AND TREATMENT OF INCOME