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Page | 216 11311 EARNED INCOME (NON-SELF EMPLOYMENT) CALCULATION

A. Conversion of Income The receipt of income generally occurs weekly, biweekly, semi-monthly or monthly. Pay dates may vary when the normal pay date falls on a holiday or weekend. Conversion factors are used to convert income to monthly amounts when income is received on a weekly or bi-weekly basis and the individual received or expects to receive a full month’s income.

1. Weekly Income – Conversion Factor 4.3  Pay days that are 7 days apart and normally on the same day of the week, such as every Monday, indicate the individual is paid weekly.  If the income is received weekly, multiply the payment by the conversion factor 4.3 to determine the monthly income.

2. Bi-weekly Income – Conversion Factor 2.15  Pay days that are 14 days apart and normally on the same day of the week, such as every other Friday, indicate the individual is paid every other week (bi-weekly).  If the income is received every two weeks, multiply the payment by the conversion factor 2.15 to determine the monthly income.

3. Semi-Monthly income – Conversion Factor 2.0  Two pay days in the month that are normally on the same dates, such as on the 5th and 20th, indicate the individual is paid twice a month (semi-monthly).  If payments are received twice a month, then multiply the payment by the conversion factor 2.0 to determine the monthly income.  EXCEPTION – If no paystubs or only a partial paystub have been received and a wage verification form shows their weekly number of hours and the hourly rate of pay, the income must be converted to represent a full 30 day period. In this situation, the weekly conversion rate of 4.3 should be used to determine income.

4. Monthly income – No Conversion Factor Needed  If income is received in a single monthly payment, no conversion is necessary since it is already a monthly amount.

B. Averaging Fluctuating Income Fluctuating income is income that changes significantly from month-to-month (e.g. shift differential, on-call employment, changing hours, etc.).

In fluctuating income cases, the Specialist must determine what is representative income for each household based on their unique circumstance. Depending on the circumstances, the best estimate of fluctuating income may be to use the past 30 days of income, the prior 2 months of income, or the prior 3 months of income. Due to changes in income, date started, or other reasons, the Specialist might have to use less or more depending on available information. Additionally, checks may need to be disregarded if they are not representative for the future period.

There must be a discussion with the customer to arrive at the most accurate income figure for the employment and it must be thoroughly documented in the narrative.