Page 42
Child Care Scholarship Policy Manual 42
To arrive at the gross monthly income for an applicant who receives wages, child support, or other earned/unearned income, follow the formulas below according to how often the income is received: • Weekly – The gross weekly salary is multiplied by 4.33. • Biweekly (every other week) – The gross bi-weekly salary is multiplied by 2.16. • Semi-monthly (client is paid twice a month) – Add the two checks (gross amounts) together. When you have only the hourly rate and hours worked per week for a client paid semi-monthly, income should be calculated by multiplying the hourly rate of pay x the number of hours worked. That total should then be multiplied by 2. That amount should then be added together to get the semi-monthly amount: Example: $15/hour at 40 hours per week, paid semi-monthly should be calculated as $15 x 40 =$600. $600 x 2 = $1200. $1200 + $1200=$2400. • Monthly (client is paid once a month). Use the gross monthly salary. • Through self-employment. Use the adjusted gross income from the profit loss statement. Use adjusted gross income and divide by 12. If the adjusted gross income is a negative number, enter zero. • If only the yearly salary is provided, use the yearly salary and divide by 12 to get the gross monthly income. • Seasonal or irregular gross income must be averaged.
NOTE: The 4.33 and 2.16 formulas are used to get an average of income as some months have more weeks. These formulas are federal standard calculations used to determine income and provide a more accurate representation of income. Verification of income from work will be used to determine eligibility for child care. The child care eligibility worker may use agency databases available such as TANF or SNAP etc. for information to verify income when other documentation is not provided. Child care eligibility staff will review check stubs to ensure there is NO appearance of the check stubs being tampered with, falsified, etc. If there are discrepancies, third-party verification will be obtained and documented. Earned vs. Unearned Income Earned income is income earned through wages, salaries, tips and other taxable income. Unearned income is income received from a source other than work. Ie..TANF benefits, Social Security, child support, alimony, etc.