M E M O R A N D U M

IM-108  08/13/99  WELFARE-TO-WORK WORK EXPERIENCE


SUBJECT:
WELFARE-TO-WORK WORK EXPERIENCE
 
DISCUSSION:
The purpose of this memorandum is to discuss earnings received from Work Experience through Welfare-to-Work (WtW).

WtW Work Experience is a short term or part-time training assignment.  It is designed to enhance the employability of participants through the development of good work habits and basic work skills in public or private sector.  Earnings are paid to the individual by Private Industry Council (PIC) with WtW Work Experience funds.

It is important to note that the Income Maintenance and the Food Stamp Program budgets this income differently.

TEMPORARY ASSISTANCE-MEDICAL ASSISTANCE FOR FAMILIES (MAF)-CHILD CARE

WtW Work Experience earnings are EXCLUDED when determining eligibility and grant amount for Temporary Assistance/MAF/Child Care.

MC+

For MC+ (children, parents, and pregnant women) include WtW Work Experience earnings as earned income when completing MC+ budgets.  All allowable deductions apply.

FOOD STAMP PROGRAM

The Food and Nutrition Service (FNS) Regional office recently provided clarification of policy for budgeting Welfare to Work funds for food stamp households.  Unless the payment from WtW funds is an excludable reimbursement for expenses, budget WtW payments as unearned income to the food stamp household.  Payments from WtW funds are treated as unearned income even if the funds are used to pay for performance of work.  If the payment from WtW funds is a reimbursement of expenses for day care, travel, etc., consider whether or not the reimbursement is excludable.  Refer to IMNL Section 1115.015.20 regarding reimbursements.

In some instances WtW funds are administered the same as JTPA funds, however they are NOT JTPA funds and cannot be excluded as income for food stamps.

DATE OF IMPLEMENTATION

Implement budgeting policy for WtW Work Experience earnings effective immediately.

NOTE:  If an employer hires a participant at the conclusion of work experience, budget the income as earned income for all the above mentioned programs.

JOBS SYSTEM ENTRY

While an individual is participating in WtW Work Experience they will be entered into DFS work activity component 13, Unsubsidized Paid Employment in the JOBS system.  An individual participating in WtW Work Experience is obtaining training and work experience to assist them to move promptly into regular public or private employment.  Provide transportation reimbursement (TRE) and work related expenses (WRE) to individuals participating in WtW-Work Experience.  Access the Employment Data screen through JCAT and record the employment information.

 
NECESSARY ACTION:
  • Review this memorandum with appropriate staff.
  • Implement this policy effective immediately.
  • Exclude earnings from WtW Work Experience from the Temporary Assistance, Medical Assistance for Families, and Child Care budget.
  • Budget earnings from WtW Work Experience as earned income when completing MC+ budgets.
  • Budget earnings from WtW Work Experience as unearned income for the Food Stamp Program.
  • Enter participants into the JOBS system in component 13, Unsubsidized Paid Employment and record the employment information.  Pay supportive services while the individual is participating in this activity.
DC/CW
Distribution #6

[ 1999 Memorandums ]