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When income is received on an hourly wage, shift work, or piece-work basis, weekly income may fluctuate if the household member works fewer hours than his normal schedule or works overtime. In this situation, the Specialist should consult with the household and determine the "normal" amount of income to be expected for one week's work. A determination should also be made to ensure that this amount is reasonably certain for the rest of the certification period. If the household is unsure of the amount and based on the verification provided a reasonable amount cannot be determined, then a 3 month average should be obtained to determine the prospective income amount.
When an employee requests that wages be held, this money is counted as income in the month they would otherwise have been paid by the employer. If, however, wages are held by an employer as a general practice, even if held illegally, they cannot be counted as income unless the household anticipates it will ask for and receive an advance or the household anticipates receiving income from previously held wages.
Advances are to be considered income only if reasonably anticipated. If income is advanced, it is counted as received. When the advanced wages are deducted from income by an employer, Benefits Specialists must take the gross income minus the deduction for advanced wages and count the remaining income. Even if the advanced income was never budgeted to the household, the repayment of the advanced wages must be deducted from the gross income.
Whenever a full month's unearned income is anticipated, but the income is paid once a week or once every two weeks, the income must be converted to a monthly amount. The monthly amount is determined by using the following:
A. Income received once a week - multiply by 4.3. B. Income received once every two weeks - multiply by 2.15. C. Income received twice a month - multiply by 2.
8700 HOUSEHOLDS WITH SPECIAL INCOME SITUATIONS
8701 SELF-EMPLOYMENT INCOME
Households in which one or more members are engaged in an enterprise for gain either as an independent contractor, franchise holder, or owner-operator must be considered as self-employed, provided that the member(s) is actively engaged in the enterprise on a day-to-day basis. In instances when the member(s) hires or contracts for another person or firm to handle the day-to- day activities of such enterprise, the member(s) will have self-employment income but will not be considered as self-employed for purposes of work registration.
The receipt of income from self-employment, which may constitute all or only a portion of the income of the household, does not automatically exempt the member(s) from the work registration requirement.
Corporations are considered a self-employment enterprise; however, the income individuals receive is not considered self-employment income. Wages paid to an individual from a corporation are counted as received, just like all other wages. Dividends paid from a corporation (identified on Example: John is paid the 1st and the 15th of each month unless the 1st or 15th falls on a weekend or holiday. He receives his pay on the working day prior to the holiday. His income would be budgeted as if received on the 1st and 15th of the month, regardless of when actually received.