OKDHS - OAC 340:50-7-46. Converting to monthly income

340:50-7-46. Converting to monthly income

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Revised 6-1-10

(a) Converting income. When a full month's income is anticipated but is received more often than monthly, the income is converted to a monthly amount as indicated in (1) through (5) of this subsection. When the amounts to be converted differ, such as fluctuating daily, weekly, or biweekly amounts, an average is obtained and the average is multiplied by 4.3 or 2.15 whichever is applicable. Cents are carried through all steps and then rounded to the nearest dollar when the monthly amount is determined. One cent through 49 cents are rounded down and 50 cents through 99 cents are rounded up. The worker must exercise extreme caution when determining whether income is received twice per month or biweekly, every two weeks.

(1) Daily. Income received on a daily basis is converted to a weekly amount then multiplied by 4.3 only when there is a consistency in days worked each week and a regularity of pay dates. • 1
(2) Weekly. Income received weekly is multiplied by 4.3.
(3) Twice a month. Income received twice a month is multiplied by 2.
(4) Biweekly. Income received every two weeks is multiplied by 2.15.
(5) Irregular income. Income received at irregular intervals is not converted. • 2

(b) Anticipating income. For the purpose of determining the household's eligibility and monthly benefit allotment, the worker takes into account the income already received by the household and any anticipated income the household can be reasonably certain to receive during the certification period. In the month of application, the anticipated income may be less than a full month's wages. In this case, use the actual or actual anticipated income for the month of application. For the remaining months of the certification period, the worker averages and converts the income to a monthly amount. • 3

(1) Uncertain income. If the amount of income that will be received or when it will be received is uncertain, that portion of the household's income is not counted. For example, a household's anticipated income from a new source, such as a new job, recently applied for public assistance, or unemployment benefits, may be uncertain as to the time and the amount of the initial payment.
- (A) The anticipated payment is not considered unless there is reasonable certainty concerning the month the payment will be received and the amount of the payment.
- (B) The payment is disregarded if there is no way to determine the amount of the payment.
- (C) If the exact amount of the income is not known, that portion of it which can be anticipated with reasonable certainty must be considered as income.
- (D) In cases where the receipt of income is reasonably anticipated but the monthly amount may fluctuate, the household may elect to have their income averaged.
- (E) Households are advised to report all changes in gross monthly income as required.
(2) Income received in the past 30 calendar days. Income received during the past 30 calendar days may be used as an indicator of income anticipated to be available to the household during the next certification period. Past income is not used to anticipate future income for any month in which a change in income has occurred or employment has terminated. • 4
(3) Regular employment. When the head of the household or other members of the household have regular employment, income from previous months is usually a good indicator of the amount of income that can be anticipated in the month of application and subsequent months. If information supplied by the household or collateral contact indicates that future income will differ substantially from the previous month's income, the worker uses the information to make a reasonable estimate of the anticipated income. The method used to determine the income is fully documented in the case record. • 5
(4) Withheld wages. Wages withheld at the request of the employee are considered income to the household in the month the wages would otherwise be paid by the employer. Wages withheld by the employer as a general practice even if in violation of the law are not counted as income to the household, unless the household anticipates that it will ask for and receive an advance, or the household anticipates that it will receive income from previously held wages. Advances on wages are counted as income when they can be reasonably anticipated.

(c) Averaging income. Households, except for destitute and migrant or seasonal farm worker households, may have their income averaged. To determine the household's eligibility, all other income is added to this averaged monthly income then the income exclusions and deductions are applied in the normal manner.

(1) Fluctuating income. Households with fluctuating income may elect to have the income averaged.

(A) If the household indicates the most recent 30 calendar days income is representative of anticipated future earnings, it is appropriate to use this income for computing gross monthly income.

(B) When the household indicates the most recent 30 calendar days of income is not representative of anticipated future income, the worker uses additional months income to arrive at a representative anticipated monthly gross income.

(C) Income that is received more often than monthly is converted to a monthly income prior to determining a monthly average. The number of months used to arrive at the average income need not be the same as the number of months in the certification period. For example, if fluctuating income for the past 30 calendar days and the month of application are known and, with reasonable certainty, are representative of the income fluctuations anticipated for the coming months, the income for the two months may be averaged and projected over the certification period.

(2) Employment contract and self-employment. Households which by contract or self-employment derive their annual income in a period of time shorter than one year must have that income annualized over a 12-month period, provided the income from the contract is not received on an hourly or piece-work basis. These households may include school employees, sharecroppers, farmers, and other self-employed households. These provisions do not apply to migrant or seasonal farm workers. • 6

(d) SSA/SSI Income. When using the Beneficiary and Earnings Data Exchange System (BENDEX) or the State Data Exchange System (System) to verify Social Security (SSA) benefits or Supplemental Security Income (SSI), see OAC 340:65-3-4.

INSTRUCTIONS TO STAFF 340:50-7-46

Revised 6-1-10

1. When a person is paid daily, income is converted to a weekly amount then multiplied by 4.3 to arrive at a monthly gross wage. There must be consistency in the days worked each week and a regularity in pay dates in order to use this method of income conversion. For example, when a person is employed:

(1) five days a week, Monday through Friday, and paid daily, daily income is converted to a weekly amount then multiplied by 4.3 to arrive at the monthly gross wage; or

(2) three days a week, Monday, Wednesday, and Friday, and paid daily, daily income is converted to weekly then multiplied by 4.3 to arrive at the monthly gross wage.

2. When there is no consistency in the work offered or when pay is received, it is appropriate to average the income received in a calendar month. To convert this income, use the total month's income added together. If more than one month's income is available, add all income together and divide by the number of months of income used.

(1) For example, a person is registered with a day labor agency but has only worked two days in the last two full months: May 16, $60, and June 21, $50. The appropriate method for determining monthly gross wage is to average these two months income: $60 + $50 = $110 divided by 2 = $55.

(2) For example, a person has just started working for a day labor agency. The person has worked three days so far in the first month, the application month, but the month is not yet ended. It is appropriate to total the wages earned so far in the first/application month and use that amount as the countable earned income for the initial and ongoing months, as there is no reasonable way to anticipate earnings.

3. Examples of when actual income is not used are when:

(1) all income for the month has not been received;

(2) the person is paid every two weeks and received three checks in the month of certification from ongoing employment; or

(3) the person is paid weekly and received five checks in the month of certification from ongoing employment.

4. When income fluctuates to the extent that a 30-day period alone cannot provide an accurate indication of anticipated income, a longer period of past income may be requested and used to determine representative income. If the additional verification is not provided, the worker uses the most recent 30 days income to determine eligibility.

5. (a) When computing ongoing earned income using pay stubs, the procedures listed in (1) through (5) are followed.

(1) The worker must use the most recent 30 calendar days of pay stubs.

(2) Pay stubs must be consecutive. Using a calendar to identify the pay dates ensures there are no missing pay stubs.

(3) Gross amounts of income must be used in the calculation process.

(4) If hours worked fluctuate each pay period, the worker must discuss with the client the reason for varying hours, such as employee missed work due to illness or hours fluctuate due to amount of work performed. The reason for fluctuating hours is documented in the Family Assistance/Client Services (FACS) case notes.

(5) Only those pay periods determined as representative pay for the next certification period are used in the calculation. The case record is documented with the reason for the exclusion.

(b) If a person receives a benefit allowance from his or her employer, count the regular gross earnings plus any money left after deducting the insurance cost from the benefit allowance.

(c) If the employer adds a cash benefit to the employee's income because the employee chooses not to purchase insurance, the amount added to the income is counted as earned income.

(d) When computing earned income from new employment and a full pay check has not been received, it is appropriate to use an employer's statement or Form 08AD094E, Employment Verification that has been completed by the employer. The statement or form must include the client's scheduled hours per week, rate of pay, and how often paid. When anticipating new income based upon an employer's statement only, the income is converted using the appropriate 2.15 or 4.3 calculation method.

6. Schools generally have contracts with all their employees. The worker determines whether the contract pay is hourly or salaried to determine how to compute earnings for food benefits. Contract pay that is for a salary is computed according to OAC 340:50-7-46(c)(2). Hourly contract pay is computed according to OAC 340:50-7-46(a).

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