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Page | 165 eligibility test and for use in determining the household's benefit level for the month of application. Any income from a new source anticipated 10 days after the day of application must be disregarded for the application month.

A household member who changes jobs but continues to work for the same employer is considered to still be receiving income from the same source. Similarly, a self-employed household member who does work on a contract basis or receives income from different customers is considered to be receiving income from the same source. These special eligibility and benefit calculations apply to initial applications and renewals, but only for the first month of each certification period. For renewals, income from a new source is disregarded in the first month of the new certification period if the income from the new source will not exceed $25 by the 10th calendar day after the date of the household's normal issuance cycle.

8704.2 Travel Advances (for Destitute Households) Travel advances paid to new employees are not counted as income and are not considered in determining whether a household is destitute, to the extent the advance is excluded as a reimbursement.

Money received for the expenses of traveling to a new location for employment may be received in the form of a travel advance or as an advance of wages.

Advances of wages for travel costs are counted as income. They are not considered in determining whether the household is destitute or whether later payments from the employer are from a new source of income. Such a payment is considered an advance of wages only if, by written contract, it will be subtracted from wages later earned by the employee.

8705 CONTRACT DEFINITION/EMPLOYEES

Households with members who receive contract income which is renewable on a yearly basis or intended for their annual support will have this income averaged over a 12-month period to determine household eligibility.

To be considered contract income, a contract must be written or implied and the salary amount identified in the contract must be for a set dollar amount, not an hourly or piece meal basis. Additionally, the salary must be paid based on the set dollar amount, not paid by how many hours were worked or the amount of work that was completed.

If the contract indicates an hourly wage and a further contact with the employer verifies the contract is for a predetermined total salary amount, the income is considered contract income. If the contract indicates a predetermined total salary amount, but the individual is paid based on the number of hours worked or the amount of work that was completed, it is not contract income and is treated as normal earned income. See the example below as further explanation of contract and non-contract income.

Example: A household applies on May 10 and has received a $50 wage advance for travel from a new employer on May 1 but will not begin receiving any other wages until May 30. This household qualifies as destitute. The Specialist should disregard the earnings anticipated to be received May 30 but should consider as income the wage advance received May 1.