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UPDATED: AUGUST 1999

108

INCOME EARNED

TIPS

Description: Tips are a gratuity paid to persons engaged in personal service, based upon a percentage of the price of goods or services, exceptional service or preferred attention. Policy: Tips received by the A/R and members of his/her household are considered in determining eligibility for Medicaid. References: SSL Sect.

366.2(a)

Dept. Reg. 360-4.3

Interpretation: Tips given to people working in personal service occupations are often a significant part of their income. Wages and salaries paid to such persons are often quite low because tips are expected to provide a large portion of their income. Tips may vary seasonally or by the quality and type of service rendered. Some occupations for which tips may constitute a substantial portion of earnings are:

Waiters and waitresses Taxi drivers Bellhops Bus persons Bartenders Porters Shoe shiners Delivery persons Barbers and beauticians Chambermaids Checkroom, locker room and washroom attendants Masseurs and masseuses Caddies Vending stand operators Entertainers who play in restaurants, bars or nightclubs Parking attendants

Since the list is not all inclusive, income from tips is considered for any A/R who is engaged in a personal service occupation.

(MRG)