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Nevada Division of Welfare and Supportive Services Energy Assistance Program Manual G. Annual Income
Annual income is received once every twelve (12) months. The annual income figure is used in budgeting. H. Year-To-Date (YTD)/Averaged YTD Income If a household member’s pay stubs, once annualized, do not reflect their actual year-to-date income on their most current pay stub, the YTD or Averaged YTD income may be used. Typically, this occurs for a number of reasons including, but not limited to, absences from work, temporary employment, or not employed for the full year, or it’s the end of the calendar year. Example 1: Household member submits two consecutive pay stubs, each for a 14-day pay period: The first pay stub: 11/29 thru 12/12 in the amount of: $691.32 The second pay stub: 12/13 thru 12/26 in the amount of: $1189.85
Total: $1881.17 Divided by the number of pay stubs (2): $940.59 Multiplied by 26 pay periods in a year: $24,455.34 = Annualized Income The 2-person household does not meet the income guidelines. However, the household member’s last pay stub for the calendar year (the second pay stub above) shows the YTD as $20,298.05. It is noted the member received a substantial pay increase the last week of December. It is prudent to use the actual YTD income rather than the annualized income. Example 2: Household member submits four pay stubs, each representing a 7-day pay period: The first pay stub: 09/20 thru 09/26 in the amount of: $276.79 The second pay stub: 09/27 thru 10/03 in the amount of: $307.90 The third pay stub: 10/04 thru 10/10 in the amount of: $251.62 The fourth pay stub: 10/11 thru 10/17 in the amount of: $283.41
Total: $1,119.72
Divided by the number of pay stubs (4): $279.93 Multiplied by 52 pay periods in a year: $14,556.36 = Annualized Income The household member’s YTD income on the most current pay stub is $10,364.23. The application indicates the member has been employed for less than 12 months. The hire date was 01/17 and the date on the most current pay stub is 10/17. The number of weekly pay periods during this timeframe is 40. Divide the YTD of $10,364.23 by 40 pay periods to obtain the average weekly income of $259.11; multiply by 52 weeks for the Averaged YTD income of $13,473.72. Based on the facts of the case, it is prudent to use the Averaged YTD income.
There are cases where the YTD income on the most current pay stub is greater than the annualized income. Further investigation is warranted to determine the reason, such as the household member was demoted, their hours were reduced or the pay stubs provided are not consecutive and pay periods are missing. MTL 01/24 June 25, 2024 - 5 - Section 800 – Budgeting