This document provides an overview of income calculations for determining eligibility. It discusses the purpose of income calculations, different pay frequencies, countable vs. non-countable income, determining monthly income amounts, income source codes, and exercises for calculating income. The objectives are to understand income verification, identify pay frequencies, determine countable monthly income, know income codes, and practice income calculations and data entry. Pay periods include weekly, bi-weekly, twice monthly, and monthly. Countable income includes earnings and benefits while non-countable includes loans, refunds, and SSI. Calculations convert pay to a monthly amount using multiplication factors.
2. Course Objectives
After completing this module, you will be able to:
Understand the purpose of income calculations
Identify the various pay frequencies
Know the difference between countable income vs. non-countable income
Determine countable monthly income
Identify income source codes
Earned income
Government benefits
Countable income codes
Exercises
Data entry income
3. The purpose
For the next several slides, we will identify those items that are used in
income verification and calculations. We will also look at the income source
codes that appear in IntegriMatch.
Pay periods
Before any income is entered into IntegriMatch, it is important to recognize
the frequency of pay.
4. The purpose
Income calculations
Eligibility is determined on the basis of monthly gross income. Therefore,
the frequency of pay will need to be converted into monthly gross income.
(unless of course the pay period is on a monthly basis).
There are calculations that will correspond to each type of pay period.
(weekly, bi-weekly, and twice-a-month)
Income Codes
Extract files will have income codes, therefore it is important to enter the
correct income code.
5. Pay Periods
Weekly: employee is paid each week
Bi-Weekly: employee is paid every other week (26
times a year)
Twice-a-month: refers to pay days that occur 24
times a year
Monthly
Validation Points for Pay stubs should include:
• The employers name
• Gross income
• Frequency of pay
7. What is Earned Income?
Earned income includes all income and wages from working or selfemployment.
WAG 15-05-00
Eligibility for Medical only persons living in the community is determined in
whole dollar amounts. Drop cents from each amount during the eligibility
calculation.
8. Countable Income
What can be used as countable income?
The amount of an individuals' gross income that is applied towards the program standard.
Paystubs
Social Security Benefits
Self-Employment
Child-Support received
9. Not Countable Income
The following is a list of income that we cannot use towards the budget.
Educational Loans
Tax Refunds
Lump sum inheritance
Child Support being paid out of the household
SSI
10. Income (FHP)
To determine monthly income (both earned and unearned) review
documentation received for pay frequency.
To calculate an average weekly/bi-weekly amount
Multiply the amount by 4.3 if the person receives a weekly payment
Multiply the amount by 2.15 if the person receives bi-weekly
payments
Multiply by 2 if the person is paid twice a month
11. Income FHP
Multiple paystubs
When the client is paid weekly, and provides paystubs for proof of income,
enter each paystub, along with the actual pay date. Make sure to check and
see if all of the paystubs, are within the 30 day time period.
For example: Client turns in $100, $150, $175 and $100. This person is paid
weekly. The pay dates are: May 31, May 24, May 17, and May 10th.
Enter each of the paystubs into the Income Tab.
12. Determine Countable Monthly Income
Monthly countable income is:
Nonexempt income minus allowable disregards and deductions.
13. Determining Monthly Countable Income
Countable monthly is compared to the Program Standard.
For example: Family of 3, with countable income of $2100. Based on the provided
information, the family qualifies for Assist child & Adult
14. Determining Monthly Countable Income
Countable monthly is compared to the Program Standard.
For example: Family of 3, with countable income of $2200. Based on the provided
information, the family qualifies for Share/Rebate.
15. Determining Monthly Countable Income
To determine countable monthly income for FHP’s, deduct the following items:
Allowable business expenses if they are self-employed
$90 employment deduction
Child care expenses
Up to $50 per month from current child support received
16. Exercise: Determining Gross Countable
Income
Ms. C enrolled in Family Assist, with two children. Ms. C turns in a paystubs which indicates gross
income of $1920 bi-weekly. Ms. C did not indicate that she is paying any child care expenses. There
is also no indication of any court orders child support on file.
What is the gross monthly total?
What is the total after taking the $90 Employment Deduction?
1,920 X 2.15 = 4,128
4,128 – 90 = 4,038
17. Note for the recommendation
Eligibility Specialist Note:
Case reviewed, member Ms. C submitted requested documentation, residency has
been verified, citizenship has been verified, household size has been confirmed,
and one current check stub in the amount of
$1,920 with a bi-weekly pay frequency has been submitted.
Income calculation: 1,920 X 2.15 = 4,128 (Gross monthly amount) 4,128 - $90
(Employment Deduction) = $4,038.
Household size= three (Mother and two children)
Recommendation: Based on the household size, and the income level (after
allowable deductions) is over 200% but not over 300% of the FPL. Recommend
change.
18. Determining Gross Countable Income
Ms. B works and is paid bi-weekly ($100.56), has one child, is in Family Care,
receives $200 child support per month, and no child care expenses.
What is the gross monthly countable income?
What is the total after taking the $90 Employment Deduction?
What is the total after taking the $50 Child Support Deduction?
$100 x 2.15 = $215
$215 – $90 = $125
$125 + $200 – 50 = 275
Remember to take: Allowable business expenses, $90 employment deduction,
Child care expenses and up to $50 per month for child support received
19. Calculating Monthly Countable Income
This is a category 96. Mother has earned income bi-weekly amount of $996. Father has
earned income bi-weekly of $1022. There are two children on the case, and the family is
in Group County III. (This is a family of 4. )
What is the monthly gross amount for each parent?
What is the amount after the $90 Employment Deduction?
What is the combined Family Total?
996 x 2.15 = 2141 – 90 = 2051
1022 x 2.15 =2197 -90 = 2107
2051 + 2107 = 4158
23. Child Support payments received
When determining available income, exempt up to $50 of the total current monthly
support.
If the court ordered child support is less than $50 per month, then exempt only the
amount received.
For contributions from a non-responsible relative (e.g.,
grandparent), consider the full amount of the
contribution as available income.
25. Examples of Unearned income
Unearned income is all income other than that received in the form of salary
for services performed as an employee or profits from self-employment
(earned income).
Sources of unearned income include:
Social Security Award letter
Veterans Award letter
Workman’s compensation
Company pension
Unemployment Award Letter
SDU/KIDS child support
27. Exercise 1
Example:
Employer: Cardinal Health
Gross: $1079.64
Frequency of pay: Bi-weekly
Overtime: $6.04
(The overtime and gross pay have
already been added together)
Conversion
$1079 x 2.15 = $2319
29. Exercise 3
Example
Employer: Allied Services
Gross amount: $1920 (pay frequency weekly)
Check 1: 6/15/13
Overtime: $13.00
Question 1: What is the converted gross monthly amount?
1933 x 4.3 =
8311
30. Exercise 4
HOH: Sosa, Soccaro
Resides in Aurora
Category 96/Family Care
There are two children on the case
The father is not listed on the case
No child care is provided
No court ordered support is provided
The father turns in a pay-stubs with gross bi-weekly income of: $178.25, $178.25
The mother turns in a pay-stub of gross-bi-weekly income of: $1251.11, $1362.10
After taking all allowable deductions, what is the total gross monthly countable
income?
What would be the potential recommendation for this case?
178 x 2.15 = 382 – 90 =
292
1251 + 1362 = 2613/2 =
1306 *2.15 = 2807
2807 – 90 = 2717 + 292 =
3009
31. Exercise 5
HOH: Ata, Amol
Category 94/Family Care
There is one child on the case
Child support for $1,100
The mother receives $1,000 spousal maintenance monthly
The mother turns in pay stub (weekly): $123.69
After taking all allowable deductions, what is the total gross monthly
countable income?
What would be the potential recommendation for this case?
32. Deduction Calculations
Here is an example of how deductions would be calculated the client is
receiving the Earned Income Exemption, Employment deduction and Child Care
Expenses
Gross income:
$520 (Gross monthly income)
Employment deduction:
$90
$430
$30 deduction
$400/3 = $133 (this is 1/3 deduction)
1/3 Deduction
-$133
$267
-$30
Child Care
-$200
$67 Countable income after deductions
33. Exercise 6
A mother, with an estimated due date of Nov 1, 2013 is on Mom’s and Babies.
The mother has turned in paystubs stating she earns $300 bi-weekly. The
mother has one child currently on the case and is 4-years old. The mother
pays $25 per week for child-care and has provided proof of child-care
payments from the provider. What is the mother’s countable income after
deductions?
300 X 2.15 = $645
$645 – 90 = $555
$555- 30 = $525
$525/3 = $175
$525 – 175 = $350
$350 – 100 = $250
Speakers note: When we receive copies of pay stubs, it is important to understand all of the information that has been provided. If the paystub does not meet the validation points , the ES must ask the client to re-submit with the documentation with the approved information.
Policy 01.02.04 Income calculation
What is Earned Income?Earned income includes all the taxable income and wages you get from working or from certain disability payments.There are two ways to get earned income:You work for someone who pays youorYou own or run a business or farm
PM: 15.04.02Note: If a person is paid weekly and receives less than 4 checks during a the month, or if the person is paid once every two weeks and receives less than 2 checks during the month, use the actual amount received.
Speakers Note: Apply the All Kids Assist Income policy (PM 15-04-02) Use the All Kids Assist Policy to determine who to include in the standard. PM 15-06-00Examples of disregards and deductions are: $90 Employment deduction, Child-care expenses (up to $175 for children two and over, and up to $200 for children under two)$50 child support deduction and Mom’s and Babies $30 1/3
Note:The income standard for all Medical Only programs is based on the number of persons included in the standard. If a pregnant woman is included, increase the income standard by the number of children she is expecting.If countable monthly income exceeds the Moms and Babies Income Standard, decide eligibility for FamilyCare Assist Spenddown or All Kids Assist Spenddown using the regular income standard. A pregnant woman cannot spenddown to the Moms and Babies standard. (PM 06.09.04)
Note:The income standard for all Medical Only programs is based on the number of persons included in the standard. If a pregnant woman is included, increase the income standard by the number of children she is expecting.If countable monthly income exceeds the Moms and Babies Income Standard, decide eligibility for FamilyCare Assist Spenddown or All Kids Assist Spenddown using the regular income standard. A pregnant woman cannot spenddown to the Moms and Babies standard. (PM 06.09.04)How would you calculate the spendown for the adult?
Deductions from Earned Income: 15-04-02b
This person would be in a Spend-down
Also show the class a note from case number: 942260000S99344 Danika SmithCase number: *174894 Erica King
For this slide we have AnimationsStep 1: convert the weekly incomeStep 2: Subtract the $90 Employment deductionStep 3: Allowable business expenses if they are self-employed$90 employment deduction Child care expensesUp to $50 per month from current child support received
There is animation on this page996 x 2.15 = 2141 – 90 = 20511022 x 2.15 = 2197 – 90 = 21072051 + 2107 = 4158The Family Assist standard for Group County II family of 4 is $445
Policy 01.02.04 Income calculation
Self employment business statement
WAG: 08-02-06A complete list can be given to the participants as a hand-out. BENDEXBENDEX is a data exchange by which SSA exchanges Master Beneficiary Records (MBR) and earnings data with the State agencies on a daily basis. Examples of data from the MBR would include benefit rate, payment status or address. Click on the link for a full list of the BENDEX record data elements. (http://www.ssa.gov/gix/programsAndDataExchanges.html)Explain the SDU/KIDS child support
Policy 01.02.04 Income calculation
Period beginning: 1/28/2013Period ending: 2/10/2013Pay date: 2/15/2013
Paystub must contain: Date (within the last month), employer name, employee name, frequency, pay amount, indication of taxes withheld (not always true indicator of earned income).Pay period began: 2/1/2013Pay period end: 2/15/2013Check date: 2/15/2013
Step 1: convert to get the monthly income Step 2: minus the 90 employment deduction Step 3: minus the $30 deduction from the remainder in step 2 Step 4: Take the 1/3 of remainder in Step 3Step 5: Subtract the amount from Step 4 from the remainder in Step 3 (this is the completion of 30 and 1/3 deduction)Step 6: Subtract the child care expenses