(Revised 07/01/18 ML3528)
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IM 5441
- The unearned income for all household members must be verified.
- Gross earned income must be verified for the following individuals:
- Age 18 and older.
- Age 16 and older if not attending school at least half-time.
If the person or organization providing the income has failed to cooperate with the household and the worker, and all other sources of verification are unavailable, the worker must determine an amount based on the best available information provided by the household. The worker must document the attempt to verify income and the income used.
Actual income from the month of application through the date of interview must be verified and documented. Income for the remainder of the month must be established and documented based on client information and prudent person judgment. This may include using verification of the last month's income if that is what the household anticipates for the first month of application.
If all income for the month of application is available prior to or on the interview date, that income must be used for the month of application. If the household anticipates a change, that change must be verified and used.
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.
Exception:
Income conversion does not apply to:
- Income paid monthly or twice a month.
- Irregular income such as on-call or income from day labor even if they receive a pay check on every pay date.
- Self-employment income.
- Child support income.
- Income will not be converted when it is known that a the household will not receive the income on each of the weekly or biweekly pay dates.
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 incentives 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.
- Household applies for benefits on October 5th and is interviewed on October 17th. At the interview the household reports they are paid every week on Fridays and verifies all earnings received in September and October to the date of interview. September earnings were received on the 1st, 8th, 15th, 22nd and 29th. The household received paychecks on October 6th and 13th and will receive additional paychecks on October 20th and 27th. They state at the interview that they expect the October 20th and 27th paychecks to be the same as what they received on the October 6th and 13th paycheck. The October 6th and 13th paycheck must be totaled and divided by two. This amount must then be multiplied by 4.3 and used to determine eligibility and level of benefits for the month of October.
- Household applies for benefits on October 17 and is interviewed on October 26th. At the interview the household reports they are receiving biweekly earnings and verifies checks received on October 3rd and October 17th. The household will receive a third check on October 31st. The employment is expected to continue. The October 3rd and October 17th checks must be totaled and divided by two. This amount must then be multiplied by 2.15 and used to determine eligibility and level of benefits for the month of October.
- Household
applies for benefits on January 15 and is interviewed on January 17. At
the interview the household reports they are paid weekly, and they
only received one paycheck in January due to the weather. The household anticipates receiving all remaining paychecks in January and do not know if they will receive all paychecks in February. Income would not be converted for January to determine eligibility and level of benefits because the household did not receive a paycheck.
Since it is not known whether the household will receive weekly earnings in February, the income must be converted. The checks from January must be multiplied by 4.3 when determining eligibility and level of benefits for February.
