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DIVISION OF WELFARE AND SUPPORTIVE SERVICES Child Care Policy Manual Regular monthly income automatically deposited directly into a financial institution (e.g., RSDI, SSI, VA, retirement pension) is considered to be received in the month it is for. Example: RSDI (Social Security) benefit for May is direct deposited April 28. The payment is budgeted as income for May. When an individual receives and returns a check to the issuing agency, determine whether to budget the payment using the following guidelines: • If there is evidence the check was incorrectly paid and it is verified the check was returned, do not budget the amount as income. • If the check was correctly paid and was voluntarily returned, budget the amount as income in the month received. Unless listed in MS 302, the gross figure cannot be reduced by any deduction, voluntary or involuntary, such as child care deductions, insurance premiums, deductions for judgments, garnishments, federal taxes, etc. 311 How to Convert Income to Monthly Amounts If necessary to manually convert income, which is not received monthly, to monthly amounts, use one of the following factoring methods: • Multiply the average weekly income by 4.3 • Multiply the average semi-monthly income by 2. Note: a semi-monthly average can only be used if actual paystubs are provided. If an Employment Verification Form (EVF) or employer statement is used, multiply the average weekly income by 4.3. • Multiply the average bi-weekly (received every other week) income by 2.15. • Divide yearly income by 12. If an additional anticipated payment is received outside the regular payment cycle, add this amount to the regular converted amount. Example: A household member is paid weekly, however receives a tip check once per month. The weekly income would be converted to a monthly amount and the tip income would be added to this monthly amount. Anticipate income using the best available information. If income is ongoing, but the amounts fluctuate, it is best to anticipate by averaging income from past pay periods. Always document your reasons for the methods used to budget income into the computer system case narratives. 312 Best Estimate Based on Projected Income from New Employment or an Employer Statement Projected income is the “best estimate” of income which is expected to be received. Use the following procedures if the household has new income from employment and there is not enough history from which a monthly amount of income can be accurately projected or if an employer statement is provided 1. Determine the estimated number of hours to be worked per week. If the employer states the individual will work a range of hours, the case manager must average the hours to 300- Income and Assets [24] MTL 01/24 July 1, 2024