Earned Income Received on a Contractual Basis 400-28-65-10-25

(Revised 10/1/11 ML #3278)

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IM 5266

 

 

NDAC 75-02-01.3-07

 

Earned income received on a contractual basis must be averaged over the number of months covered by the contract even if the income is paid in fewer months at the convenience or option of either party. The income that results from this prorate applies to applicants and recipients, and is countable income. Examples of income received on a contractual basis are school teachers, bus drivers, etc.

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

 

Example: A contract begins August 23 and ends May 31. Although the payment for the contract may not be made until the contract is complete (in this case the end of May or the first part of June) pro-rate the income from the contract over the months covered by the contract. In this case, consider payments from August through May.