Food Stamps

1115.015.10 Vendor Payments

IM-#81 August 31, 2006

Exclude payments paid to a third party for an EU expense as follows:

  • If a person or organization outside of the EU makes a direct payment using its own funds to an EU’s creditors or a person or organization providing a service to the EU, exclude it. This is not shown as income on the Income (FMX0) screen.

    EXAMPLE: Mrs. Todd’s brother, who lives in another town, pays her landlord her rent each month from his own funds. The rent payment made by the brother is not considered income.

  • Exclude rent or mortgage payments made to landlords or mortgagees by HUD or by state or local housing authorities. This is not shown as income on the Income (FMX0) screen.
  • Exclude public assistance payments by a government agency to a child care institution for day care for an EU member, for medical assistance, or for energy assistance. (Type UI – Source IK)
  • Exclude General Assistance (GA) vendor payments from income. DMH vendor payments are considered GA and are excluded from income. All DMH payments are vendor payments, therefore, exclude all DMH payments from income. (Type UI – Source DH)
  • Exclude emergency IM or GA payments provided to a third party on behalf of a migrant or seasonal farm worker EU while the EU is in the job stream. This assistance may include, but is not limited to, emergency vendor payments for housing and transportation. (Type UI – Source IKNOTE: Consider payments in money that are not made to a third party but made directly to the EU a contribution (Type UI – Source CO) and count as included unearned income. This does NOT include payments made directly to the EU or the utility provider from HUD or Farmers Home Administration for utilities. (Type UI – Source HD/HV/S8)

Count monies legally obligated and otherwise payable to the EU diverted by the payment provider to a third party for an EU expense as diverted earned income or diverted unearned income. The income is coded as the source of income it is.

EXAMPLE: Mr. A’s employer diverts part of his paycheck to Mr. A’s landlord for his rent. This is coded as WA – wages.