Earned Income Received on a Contractual Basis 400-19-55-15-15

(Revised 6/1/10 ML #3218)

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Regardless of when earned income is received, the total wage amount identified in the contract must be prorated over the period of the contract.  

Note: This policy can only be applied when awritten employment contract exists.

Example: A contract begins August 23 and ends May 31. Although the first pay is not received until September, begin counting the income in August, which is the first month of the contract period. Conversely, even though the last pay is received in June, do not count any income received in June because the contract period ended May 31.