Average, over a 12-month period, income for household members under contract to receive annual income in a period of time less than a year. This includes teachers, cooks, janitors, and professional or administrative staff. (This does not apply to contractual income received on an hourly or piecework basis.)
The renewal process may involve signing of a new contract each year; be automatically renewable; or, as in cases of school tenure, rehire rights may be implied and thus preclude the use of a written contract altogether. This may be verified by contacting the principal, superintendent, or school board.
Consider income from such a contract as compensation for a full year regardless of the frequency of compensation as stipulated in the terms of the contract, as determined at the convenience of the employer, or as determined at the employee’s wish. The fact that such a contract is in effect for an entire year does not necessarily mean that the contract stipulates work every month of the year. Rather, certain predictable non-work periods or vacations may exist, such as the summer break between school years.
When a household member initially obtains contractual employment, annualize the income but do not begin budgeting the income until the first month the individual actually receives a check.