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DIVISION OF WELFARE AND SUPPORTIVE SERVICES Child Care Policy Manual 306.46 Veteran's Administration Benefits Unearned - Maybe Veteran’s Administration (VA) Benefits are a monetary benefit paid to a person who has served in one of the United States military branches. Count the gross benefit less any amount being recouped for a previous overpayment. Exception: Exempt all educational benefits Note: Do not count VA benefits which a member of the childcare household is entitled to receive, if the benefits are paid to someone outside the home and the benefits are not made available to the household member. 306.47 Victims of Nazi Persecution Payments Unearned - Exempt Payments made to individuals because of their status as victims of Nazi persecution. 306.48 Wages, Salaries and Commissions Earned - Count Money earned through paid employment. The payment can include salary, commissions, vacation and/or sick allowances, fees, bonuses, back pay and fringe benefits. All money earned through employment must be counted as income. Gross wages must be budgeted and any money deducted from the gross income and paid to a third party for taxes, insurance or other fringe benefits are counted as income. Any amount reported on the pay stub or elsewhere as taxable gross wages is countable. Exceptions: • Exempt wage income for a minor parent who is attending school to acquire a high school diploma or a GED. • Exempt wages received by a sibling; refer to the Glossary for definition of sibling. • EITC received with wages from an employer must be deducted from gross earnings prior to the income deduction being given. 306.48.1 Definitions • Advance – a payment of wages made ahead of the normal pay date. Wage advances are a loan from the employer and should be considered as part of the household’s annual income but not considered as additional income in a 30-day or 60-day history. Example: Paychecks for 3/7 for $800.00, 3/21 for $1000.00, and 4/4 for $800.00 are used for a 30-day history best estimate of wages. The 3/21 paycheck includes a $200 a pay advance. Since this $200 will be deducted out of a future check(s) to pay the employer back, it should not be included in the best estimate and the best estimate would be $800 X 3 = $2,400 divided by 3 paychecks = $800 X 2.15 (bi-weekly pay) = $1720/mo. The same is true when the deduction shows on a paycheck for repayment of an advance; paycheck for 4/4 is $800.00, 4/18 is $600, and 5/2 is $800. The paycheck for 4/18 shows a deduction for the repayment of a wage advance so the best estimate would be $800 X 3 = $2,400 divided by 3 paychecks = $800 X 2.15 (bi-weekly pay) = $1720/mo. • Bonus/Incentive Awards – additional compensation given to an employee above his/her normal wage. A bonus/incentive award can be used as a reward for achieving specific goals set by the company, or for dedication to the company. If a bonus/incentive award is received regularly, on 300- Income and Assets [21] MTL 01/24 July 1, 2024