Temporary Assistance/Case Management

0210.015.10.05 Patterns of Income Examples

  1. A participant works the same number of hours each pay period but began working various amounts of overtime prior to the investigation.  If overtime is expected to continue, average the previous month’s wages that include overtime to determine the monthly income amount to budget.  However, if the overtime is to stop, complete budget without considering the overtime.EXAMPLE:  Ms. Johnson works as a clerk in an insurance firm. Her regular hourly rate is $3.80.  However, for the past four months she has been working overtime during each weekly pay period.  Verify that for the past two months (containing nine weekly pay periods) Ms. Johnson’s earnings totaled $1,575, yielding an average weekly amount of $175.  Convert this to monthly income by multiplying $175 x 4.333 = $758.28.  Project $758.28 as her monthly earnings on the budget.Two months after approval, Ms. Johnson reports she is no longer working overtime and the employer verifies this.  Complete the budget based on Ms. Johnson’s normal wages of $3.80 per hour for 40 hours per week ($3.80 x 40 hours = $152 x 4.333 weeks = $658.62).  Show $658.62 as the monthly amount on the budget.
  2. The claimant’s income varies with no set pattern and a change in income is not indicated.  Average representative past earnings to determine the monthly amount of income to budget.EXAMPLE:  Ms. Smith has worked at the local factory for the past three years doing piece work.  She regularly works 40 hours per week.  Her income varies from pay period to pay period depending on her production.  No changes are expected in the piece work rate Ms. Smith is paid nor in the hours worked.  After discussing with Ms. Smith variations in her earnings over the past several months, the most recent 30 days are not an adequate representation of her earnings.  After evaluating information provided by Ms. Smith, the past 12 weeks yield the most accurate estimate of her average earnings.  Total earnings for this period is $1,200, averaging $100 per week.  Convert this to monthly income of 4.333 x $100 = $433.33.  Project $433.33 as the monthly earnings on the budget.
  3. The claimant’s income varies with no set pattern.  This income will likely continue except that the claimant is receiving an hourly raise.  To determine the amount of income to budget, determine the average number of hours.  Multiply the new hourly wage by the average number of hours per pay period, then convert to monthly income.EXAMPLE:  Mr. Jones has been employed ten weeks.  His income varies from pay period to pay period due to hours worked.  Mr. Jones reveals he is receiving a 25 cents per hour raise because he passed his probationary period.  This was verified by a letter from the employer.  The total hours worked for this time period is 310, yielding a weekly average of 31 hours.  His new hourly rate is $4.05.  Multiply the new hourly rate of $4.05 times the average hours of 31 to determine projected weekly earnings of $125.55.  Convert to monthly income by multiplying 4.333 x $125.55, yielding monthly earnings of $544.01 to be budgeted.