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UPDATED: FEBRUARY 2005

106

INCOME EARNED

WAGES, SALARIES AND CONTRACTUAL INCOME

Description: Wages are cash payments, for labor or services. Wages are paid on an hourly, daily, or piecework basis. For example: a factory worker may be paid $5.00 an hour; a different factory worker may be paid $.03 for every bolt s/he tightens; a farmer may pay a worker by the day during harvest; or an A/R may clean a house for an agreed upon wage, regardless of how long it takes. Salaries are fixed cash compensation, paid regularly, for labor or services. Salaries are generally paid weekly, biweekly, or monthly. Salaries do not vary with the amount of labor or services produced. However, a salaried employee's income may vary occasionally due to overtime pay, bonuses, commissions, etc. (See INCOME LUMP SUM)

Contractual income is income paid on a contractual basis. The income is intended to cover a specific period of time. This includes, but is not limited to school employees. For all categories, except SSI- related, the income is averaged over the months covered by the contract, regardless of whether the employee chooses to receive/be paid the income in fewer or more months than the contract covers. For example: a school aide is employed under a yearly contract, but only receives a paycheck for the months of September through June. The pay for September through June should be added and divided by 12 to determine the A/R's monthly income.

For SSI-related A/Rs contractual income is budgeted as received.

Policy: All income is reviewed to determine if it is available (See OTHER ELIGIBILITY REQUIREMENTS OWNERSHIP AND AVAILABILITY) and countable. Income is generally considered in the month it is received. See above for a description of when to consider contractual income.

References: Dept Reg.

360-2.3

ADM

93 ADM-29

Interpretation: Wages and salaries are verified. State computer matches are reviewed to determine the source of income. When determining eligibility for a retroactive period, the actual income received by the A/R is budgeted.

(MRG)