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Child Care Subsidy Policy October 1, 2024 45 G. Mileage/travel reimbursements IF it is counted as taxable income (a fringe benefit) by the IRS. 1. Countable income: Mileage and travel reimbursements that exceed the IRS’s per diem rates are considered fringe benefits. Taxes are calculated and withheld from the reimbursement. This will be evident from the paystub. 2. Mileage and travel reimbursements that do not exceed the IRS’s per diem rates are not counted when calculating MGI. 5.2.1.2. Methods of Verification: Employment income must be verified by the client by submitting one of the following: A. One month’s worth of check stubs, OR B. The New Employment Verification Form (ECE-CC-1B) in the case of new employment situations in which the applicant has not yet received pay. 1. Clients using the ECE-CC-1B to verify employment must submit one month’s worth of check stubs to the agency as soon as they are received. 2. Failure to supply follow up check stubs will result in case closure. 5.2.1.3. Reviewing Check Stubs. A. CCR&R case managers should review check stubs carefully to ensure that the client is accurately reporting their income. 1) Case managers should compare current payment amounts to year-to-date amounts and review carefully for discrepancies. 2) The case manager should also review the check for overtime payments, bonuses, incentive payments, tips, and commission that may only be earned intermittently. These items will show up in the year-to-date portion of the check stub even if the client shows no earnings in those categories for the current pay period. If the client shows earnings in those categories, the case manager should follow the steps outlined in Section 5.3.2, as appropriate, to calculate an accurate average monthly income. B. Paystubs should be no more than 45 days old. Consecutive paystubs are preferred; however, it is acceptable for the case manager to calculate the amount of a missing paystub using the year-to-date amounts listed on the paystub immediately preceding and the paystub immediately following the missing paystub. Case managers using this method to calculate income should clearly explain steps taken in case contacts.