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OBSOLETE POLICY CHIP MANUAL |
Effective: December 1, 2009 - December 31, 2010
Previous Policy Reference
Anticipating income is the method used to best estimate stable income, income that is received semi-monthly, or new (or expected new) sources and/or rates of income. Anticipate income for an individual that does not have a history of current earnings or the history is not accurate due to an expected change.
To anticipate income for clients who are paid at an hourly rate, multiply the rate of pay by the expected number of hours the individual will work in the expected pay period. This figure will then be multiplied by the usual number of pay dates in the month (amount determined may need to be factored).
Income received semi-monthly will be anticipated at the rate of 172 hours per month (21.5 work days) for full time work, and fractions of 172 hours for employment that is other than full time (See Table III). Semi monthly income can also be averaged if an adequate income history exists.
Income received on a salaried rather than hourly basis will be anticipated at the monthly salary rate.
If any income changes are expected in the 12 month certification period and the nature and amount of the change is known, this income change must be anticipated and used to determine the best estimate.
Averaging income is the method used to determine a monthly best estimate amount for individual's that have an income history AND the amount of income fluctuates. The eligibility worker and the individual should agree upon a representative period of time to be used to calculate an average monthly pay rate. Total income received during the representative period of time will be divided by the number of months in the representative period to determine the average monthly amount that will be used as the best estimate for the certification period. If income changes are expected and the amount of the change is known in any months during the certification period, this method may not be used to determine a best estimate for those months. Income received in those months will need to be anticipated.
Annualizing income is the method used to determine a monthly best estimate amount for self employment income, or income that is received at irregular intervals throughout the year. This includes seasonal, contract and commission income. To annualize income divide the annual amount by 12. To determine the annual amount of income average past income and/or anticipate future income.
Contract and commission income is best estimated by averaging the amount of income over the months the contract is intended to cover.
Annualizing Examples