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VIRGINIA DEPARTMENT OF SOCIAL SERVICES SPECIAL INCOME DETERMINATIONS

10/24 VOLUME V, PART XII, PAGE 17

the effective date of the next contract, the maximum income from that contract will be averaged over the year, less the income for any anticipated absences.

It will also be necessary to adjust the average if the contract amount changes during the contract period as a result of an increase in salary. As in the situation above, the average is adjusted for the remaining months of the annualized period.

Example

A school employee signs a contract that states that he will receive $3600 per year. The contract runs from September through June. $300 is assigned to each month in the year, beginning in September. Effective in January, the employee reports that his salary was increased to $4800 per year. Now, $400 is assigned to the months remaining in the contract period ($4800 ÷ 12 = $400).

3. Termination of Annualized Income

If no further income from the same source is expected, contract income that has been annualized is considered terminated as of the last month included in the annualization.

Example

A contract school employee is paid $6,000 over the ten months in the school year, September through June. She grosses $600 in each of the 10 months. She does not plan to work for the school board in the next school year.

The BPS annualizes the income over the year September through August and counts $6,000 ÷ 12 = $500 per month.

Should the employee apply in June, the income is not considered terminated in June even though June is the last month she receives pay. The income is terminated in August, the last month included in the annualization.

Income that is interrupted within the contract period is considered terminated the month the change in contract employee status occurs.

Example

A school employee stops work in February. The BPS annualized her contract income and assigned income to the months September through August. The income will no longer count for February.

Self-employment income that has been annualized is considered terminated as of the month the person terminates the self-employment enterprise.

TRANSMITTAL #35