Work Project

Income Calculations

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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

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.

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.

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

Income/FHP

What is Earned Income? Earned income includes all income and wages from working or self-

employment.

WAG 15-05-00Eligibility for Medical only persons living in the community is determined in whole dollar amounts. Drop cents from each amount during the eligibility calculation.

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

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

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

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.

Determine Countable Monthly Income Monthly countable income is:

Nonexempt income minus allowable disregards and deductions.

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

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.

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

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

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.

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

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 = 20511022 x 2.15 =2197 -90 = 2107

2051 + 2107 = 4158

Extra Considerations for paystubs

Overtime

Overtime pay must be included in the income calculation.

Tips are considered are a part of a persons income.

Regular Overtime

Frequency of pay: bi-weeklyGross income: $1021

$1021 x 2.15=$2195$2195 – 90 = 2105

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.

Self-Employment Eligibility for self-employed client is based on net income.

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

ExercisesIncome Source Codes and calculations

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

Exercise 2

Example:

Employer: Metlife

Gross: $1,599.68

Frequency of pay: Bi-weekly

Overtime: $13.72

Conversion

$1,599 x 2.15 = $3437

Exercise 3 Example

Employer: Allied Services

Check 1: 6/15/13

Gross amount: $1920 (pay frequency weekly)

Overtime: $13.00

Question 1: What is the converted gross monthly amount?

1933 x 4.3 = 8311

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

= 28072807 – 90 = 2717 +

292 = 3009

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?

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 -$30

$400/3 = $133 (this is 1/3 deduction)

1/3 Deduction -$133

$267

Child Care -$200

$67 Countable income after deductions

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

Questions?