Earned Income Household Indicator

A new field has been created on FCAS in the lower left corner above the worker number for households subject to the change-reporting requirement for earned income households.  The field is entitled EARNED INCOME HSHLD and will display a "Y" for households subject to the new change-reporting requirement.  The "Y" indicator is created by the system when the FSU5 transaction is processed approving a case with earned income or changing a case to be subject to the earned income change reporting requirement.  The "Y" remains in FCAS to the end of the certification.

The EARNED INCOME HSHLD field will be blank for those households subject to the change reporting requirements for all other households.  The indicator will change to a "Y" when an unearned income household becomes an earned income household and the certification can be extended or shortened to six months.

This field has been added to FCAS to assist staff in determining whether or not an unearned income household is subject to the earned income reporting requirements.

Extension of Certification

The system will automatically extend certification periods when the FSU5 transaction is processed adding earned income to an unearned income household.  This will only occur when the certification can be extended to be six months in length and the total certification does not exceed twelve months. 

Households whose notice of expiration (NOE) will be produced or has been produced and mailed with a food stamp application prior to completing the change from an unearned income household to an earned income household will not have the certification period extended.  The NOE is produced on the 20th of the month prior to the end of the certification period.  These households may already have reapplied for food stamp benefits.  Process the reapplication for benefits and determine the appropriate change reporting requirement. 

Certification periods that are extended begin the month following the date of the transaction.  Notify the household of their new change reporting requirement and the effective date on the Household Notification of Benefit Adjustment
(IM 149).

FCAS will show an EARNED INCOME HSHLD indicator for all households whose certifications are extended.  If the certification cannot be extended, there will be no indicator in FCAS and the household will remain subject to the reporting requirements for all other households through the remainder of the certification period.

Shortening Certifications

Household's certified 12 or 24 months who become an earned income household during the certification will have their certification period shortened to six months, if six months remain in the certification period.  The system will automatically shorten the certification when the FSU5 is processed.  The household becomes subject to the reporting requirements for earned income households the month following the completion of the transaction and notification to the household.  The system will create the EARNED INCOME HSHLD indicator in FCAS.

When there are not six months remaining in the certification period, the certification will not be adjusted.  The household is not subject to the reporting requirements for earned income households if the certification cannot be extended or shortened.  They continue to be subject to the reporting requirements for all other households.

Households With Zero Net Self-Employment Income

When approving or adjusting a food stamp case with zero net earned self-employment income, enter code 4 (self-employment) in field 31 and zero in field 32 of the individual update screen for the household member with the income.  The system will recognize the case as an earned income case and allow a one, two, or six month certification.  If the case is being adjusted and self-employment income added, the system will extend or shorten the certification.

• Review this memorandum with appropriate staff.

• When changes are reported, check FCAS to determine whether or not a household is subject to the earned  income reporting requirements.