Income Anticipation 430-05-50-15-10
(Revised 04/01/14 ML 3400)
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Income already received or future income that can be reasonably anticipated, will be taken into account at the time of review. If the amount or receipt of income is uncertain, that portion of the household's income that is uncertain will not be counted. That portion which can be anticipated with reasonable certainty is counted as income.
In cases where the receipt of income is reasonably certain but the monthly amount may fluctuate, the household may elect to income average, if paid once or twice a month.
For all cases where income (both earned and unearned) is received either weekly or biweekly, income must be converted for benefit determination.
Biweekly is defined as receiving earnings every two weeks.
Example:
Individual receives a paycheck every other Monday.
To convert weekly earnings, total the weekly checks and divide by the number of checks (4 or 5) to arrive at the weekly average. The weekly average is then multiplied by 4.3.
To convert biweekly earnings, total the biweekly checks and divide by the number of checks (2 or 3) to arrive at the biweekly average. The biweekly average is then multiplied by 2.15.
Exceptions
1. Income conversion does not apply to self-employment income.
2. Income will not be converted when it is known that a household will not receive the income on each of the weekly or biweekly pay dates.
3. Income conversion does not apply to child support income as this is base month budgeted.
If tips, commissions, bonuses or incentives are paid or reported weekly or biweekly and are included in the gross income on the weekly or biweekly paycheck or pay stub, they are converted.
If tips, commissions, bonuses or incentives are paid or reported weekly or biweekly and are included on the paycheck or pay stub, but not in the gross income and the paychecks are received weekly or biweekly, they must be added to the gross income and converted.
If tips, commissions, bonuses or incentive are not paid weekly or biweekly, they are not converted. The tips, commissions, bonuses or incentives must be counted separately as earned income.
Examples:
- Cash tips received daily and reported monthly are not converted.
- Tips paid in a separate check that is not paid weekly or biweekly are not converted.
- A household reports at interview on October 20 that a member started a new job and received the first paycheck on October 18 and is paid every Wednesday. Income for the month of application is not converted (October) because the individual did not receive income each Wednesday in October. Actual anticipated income is used for October. Income is converted for the second beginning month of November.
- A household reports on October 10 that a household member will be losing a job on October 25 and will receive a final paycheck on November 3. When calculating eligibility and level of benefits for November, the income for this household member is not converted, as the individual will not receive income each week in November. The actual anticipated last paycheck on November 3rd is used.
- Ongoing household reports on June 5, that they will not receive all of their weekly paychecks in July as the company will be closed for one week. Since this change will result in an increase in benefits, the F419 must be sent for verification. If verification is provided, the actual anticipated income (not converted) must be used for July as the household will not receive income on each of their weekly pay dates.
In August, the household is anticipating to receive all of their weekly pay checks. Since converting the income will result in a decrease in benefits, the change to conversion must not be acted on until review.
In cases where income is received sporadically, the worker must use base month income, unless the household reports a change.
Examples:
On call income or child support received on an irregular basis.
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Calculation: |
Example: Documentation must support the amount of income used. |
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March 20 $400.00 April 5 425.00 $825.00
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a) Current income Household initially applies on April 5 and is interviewed on April 9. At the interview the household indicates they are paid twice a month and provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that March 5 check is short hours due to inclement weather. Household anticipates May income to be the same as March 20 and April 5 checks. These two checks - totaling $825.00 gross income are used to determine April and May benefits. |
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April 5 $350.00 x2 $700.00 |
b) Decreased income Household paid twice a month reports a decrease in wages on April 5 and verifies the March 5 check - $500.00 gross income, March 20 check - $500.00 gross income, and April 5 check - $350.00 gross income. The household provides verification that the decrease in hours is ongoing due to the employer cutting back all employees’ hours. Take April 5 check times two to anticipate May gross income of $700.00. The April 5 check verifies the decrease in hours unless the worker, using prudent judgment, believes it is necessary to obtain additional verification. |
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March 5 $300.00 March 20 450.00 $750.00
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c) No change - Base Month Household paid twice a month verifies actual March income and provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, and April 5 check - $190.00. The household indicates March income is what they anticipate for the month of May. March income totaling $750.00 gross income is used to determine the effect on May benefits. |
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April 5 $400.00 April 20 600.00 1000.00
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d) No change - Current Month
Household paid twice a month verifies actual March and April income and provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, April 5 check - $400.00 gross income and April 20 check - $600.00 gross income. The household indicates no change in income. April income totaling $1000.00 gross income is used to determine the effect on May benefits as it is the most current information. |
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April 5 $412.00 Divided by 5.15 80 Hours
$5.40 x80 $432.00
$432.00 x2 $864.00 |
e) Increased income Household paid twice a month provides March 5 check - $412.00 gross income, March 20 check - $412.00 gross income, and April 5 check - $412.00 gross income. The household reports a pay raise from $5.15 per hour to $5.40 per hour that will be reflected on April 20 paycheck. Household indicates no change in 40 hours per week. Take April hours from April 5 check times the new pay rate times two for a total of $864.00. This amount is used to determine the effect on May benefits. |
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March 5 $250.00 March 20 400.00 $650.00
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f) On-call income Household paid twice a month initially applies on April 5 and is interviewed on April 9. At interview household reports on-call employment and provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that they do not have any idea of what, if any, earnings they will have on the April 20 check or for the month of May. Base month income of $650.00 must be used.
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March 6 $175.00 March 13 115.00 March 20 210.00 March 27 166.00 $666.00
$666.00 Divided by 4 $166.50
$166.50 x4.3 $715.95 |
g) Extra paycheck Household initially applies on April 5 and is interviewed on April 9. The household is paid weekly and verifies March earnings of March 6 check - $175.00 gross income, March 13 check - $115.00 gross income, March 20 check - $210.00 gross income, March 27 check - $166.00 gross income, and April 3 check - $195.00 gross income. The household anticipates April earnings to be the same as March and anticipates no changes for May. March verified gross income is $666.00. When determining April benefits the worker must divide March gross income by 4 ($166.50). The weekly amount of $166.50 is then multiplied by 4.3 to arrive at $715.95, which is used in determining April and May benefits. |
