3.2.5.2 Contractual Income

Types of Contractual Income Proration Method Annual income (intended to provide support for the entire year) not paid on an hourly basis Must be prorated over 12 months. Non-Annual income (intended to provide support for only a portion of the year), not paid on an hourly basis Must be prorated over the period the income is intended to cover.

Contractual income that is paid on an hourly basis should be estimated in accordance with 3.2.2.

EXAMPLE 1 : Shanice works full-time at a public school as a Teacher’s Aide. She has worked in this position for the last 3 years and receives a 12 month contract every August. She earns $15,480 annually and has elected to receive her income over 12 months, even though she is only working September through June. She does not supplement her income during the summer. Shanice's FEP should average her income over 12 months: $15,480/12 =$1,290.

EXAMPLE 2 : Betty has worked for 5 years at a public school as a part-time nurse. She receives a contract for 12 months every August and has elected to receive her income from September through June. She earns $19,500 per school year. In the summer, she supplements her income with a job at the Girl Scout campgrounds in the first aid tent. Betty’s school income is not her annual income. Betty’s FEP should average Betty’s school income over the 10 months she has elected to receive it: $19,500/10 = $1,950.

EXAMPLE 3 : Tamika has been employed as a school bus driver for 3 years. She is paid by the hour. This employment stops at the end of the school year and resumes at the beginning of the next school year. Since Tamika is paid on an hourly basis, the income from her bus driving job must not be treated as contractual income.