Earned Income Disregards 400-19-105-25

(Revised 6/1/10 ML #3218)

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(N.D.A.C. 75-02-01.2-51(2))

 

Standard Employment Expense Allowance

Reasonable costs associated with maintaining employment are considered. A standard employment expense allowance of 27% or $180.00 whichever is greater of gross earnings has been established to defray costs associated with employment, including transportation, uniforms, social security, tax withholding, etc. This standard allowance applies to earned income of each adult household member, a minor parent, stepparents, parents of minor parents, and non-student dependent children.

 

Time Limited Percentage

TANF provides an employment incentive that affords a greater reward for the employed individual and TANF household. The time-limited percentage (TLP) disregard is for a 13-month period. The decrease in the time-limited percentage results in an increase in the amount of earned income counted in determining the TANF benefit.

 

Except for stepparents and the parents of a minor parent, all employed TANF household members with countable earned income will receive disregards from the earned income beginning the first month earned income is used in the benefit calculation, as follows:

  1. For months 1 through 6, 50%;
  2. For months 7 through 9, 35%;
  3. For months 10 through 13, 25%; and
  4. Beginning month 14, none of the earned income is disregarded in the eligibility determination and benefit calculation.

Note: Once an individual receives 13 months of the TLP disregard, the individual will not be eligible to receive it again.

 

If the household member receives the time-limited percentage for a period of less than 6 consecutive months, the 13-month disregard cycle begins again at the fifty percent (50%) level.

 

If the household member receives the time-limited percentage of 50% for a period of 6 consecutive months, the remaining months of the 13-month time-limited percentage disregard cycle continues regardless of employment status.

Note: Once the TLP has been applied and the benefit paid, the TLP count cannot be removed.  

 

A TANF case suspended for a month because of an extra check, a benefit less than $10, or a zero benefit month, will neither count as a TLP month nor break the 6 consecutive month cycle.