Income presentation
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This document provides an overview of income calculations for determining eligibility. It discusses the purpose of income calculations, different pay frequencies, countable vs. non-countable income, determining monthly income amounts, income source codes, and exercises for calculating income. The objectives are to understand income verification, identify pay frequencies, determine countable monthly income, know income codes, and practice income calculations and data entry. Pay periods include weekly, bi-weekly, twice monthly, and monthly. Countable income includes earnings and benefits while non-countable includes loans, refunds, and SSI. Calculations convert pay to a monthly amount using multiplication factors.
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Income presentation
- 1. Income Calculations Work Project Copyright © 2012 MAXIMUS. All Rights Reserved
- 2. Course Objectives After completing this module, you will be able to: Understand the purpose of income calculations Identify the various pay frequencies Know the difference between countable income vs. non-countable income Determine countable monthly income Identify income source codes Earned income Government benefits Countable income codes Exercises Data entry income
- 3. The purpose For the next several slides, we will identify those items that are used in income verification and calculations. We will also look at the income source codes that appear in IntegriMatch. Pay periods Before any income is entered into IntegriMatch, it is important to recognize the frequency of pay.
- 4. The purpose Income calculations Eligibility is determined on the basis of monthly gross income. Therefore, the frequency of pay will need to be converted into monthly gross income. (unless of course the pay period is on a monthly basis). There are calculations that will correspond to each type of pay period. (weekly, bi-weekly, and twice-a-month) Income Codes Extract files will have income codes, therefore it is important to enter the correct income code.
- 5. Pay Periods Weekly: employee is paid each week Bi-Weekly: employee is paid every other week (26 times a year) Twice-a-month: refers to pay days that occur 24 times a year Monthly Validation Points for Pay stubs should include: • The employers name • Gross income • Frequency of pay
- 6. Income/FHP
- 7. What is Earned Income? Earned income includes all income and wages from working or selfemployment. WAG 15-05-00 Eligibility for Medical only persons living in the community is determined in whole dollar amounts. Drop cents from each amount during the eligibility calculation.
- 8. Countable Income What can be used as countable income? The amount of an individuals' gross income that is applied towards the program standard. Paystubs Social Security Benefits Self-Employment Child-Support received
- 9. Not Countable Income The following is a list of income that we cannot use towards the budget. Educational Loans Tax Refunds Lump sum inheritance Child Support being paid out of the household SSI
- 10. Income (FHP) To determine monthly income (both earned and unearned) review documentation received for pay frequency. To calculate an average weekly/bi-weekly amount Multiply the amount by 4.3 if the person receives a weekly payment Multiply the amount by 2.15 if the person receives bi-weekly payments Multiply by 2 if the person is paid twice a month
- 11. Income FHP Multiple paystubs When the client is paid weekly, and provides paystubs for proof of income, enter each paystub, along with the actual pay date. Make sure to check and see if all of the paystubs, are within the 30 day time period. For example: Client turns in $100, $150, $175 and $100. This person is paid weekly. The pay dates are: May 31, May 24, May 17, and May 10th. Enter each of the paystubs into the Income Tab.
- 12. Determine Countable Monthly Income Monthly countable income is: Nonexempt income minus allowable disregards and deductions.
- 13. Determining Monthly Countable Income Countable monthly is compared to the Program Standard. For example: Family of 3, with countable income of $2100. Based on the provided information, the family qualifies for Assist child & Adult
- 14. Determining Monthly Countable Income Countable monthly is compared to the Program Standard. For example: Family of 3, with countable income of $2200. Based on the provided information, the family qualifies for Share/Rebate.
- 15. Determining Monthly Countable Income To determine countable monthly income for FHP’s, deduct the following items: Allowable business expenses if they are self-employed $90 employment deduction Child care expenses Up to $50 per month from current child support received
- 16. Exercise: Determining Gross Countable Income Ms. C enrolled in Family Assist, with two children. Ms. C turns in a paystubs which indicates gross income of $1920 bi-weekly. Ms. C did not indicate that she is paying any child care expenses. There is also no indication of any court orders child support on file. What is the gross monthly total? What is the total after taking the $90 Employment Deduction? 1,920 X 2.15 = 4,128 4,128 – 90 = 4,038
- 17. Note for the recommendation Eligibility Specialist Note: Case reviewed, member Ms. C submitted requested documentation, residency has been verified, citizenship has been verified, household size has been confirmed, and one current check stub in the amount of $1,920 with a bi-weekly pay frequency has been submitted. Income calculation: 1,920 X 2.15 = 4,128 (Gross monthly amount) 4,128 - $90 (Employment Deduction) = $4,038. Household size= three (Mother and two children) Recommendation: Based on the household size, and the income level (after allowable deductions) is over 200% but not over 300% of the FPL. Recommend change.
- 18. Determining Gross Countable Income Ms. B works and is paid bi-weekly ($100.56), has one child, is in Family Care, receives $200 child support per month, and no child care expenses. What is the gross monthly countable income? What is the total after taking the $90 Employment Deduction? What is the total after taking the $50 Child Support Deduction? $100 x 2.15 = $215 $215 – $90 = $125 $125 + $200 – 50 = 275 Remember to take: Allowable business expenses, $90 employment deduction, Child care expenses and up to $50 per month for child support received
- 19. Calculating Monthly Countable Income This is a category 96. Mother has earned income bi-weekly amount of $996. Father has earned income bi-weekly of $1022. There are two children on the case, and the family is in Group County III. (This is a family of 4. ) What is the monthly gross amount for each parent? What is the amount after the $90 Employment Deduction? What is the combined Family Total? 996 x 2.15 = 2141 – 90 = 2051 1022 x 2.15 =2197 -90 = 2107 2051 + 2107 = 4158
- 20. Extra Considerations for paystubs
- 21. Overtime Overtime pay must be included in the income calculation. Tips are considered are a part of a persons income.
- 22. Regular Overtime Frequency of pay: bi-weekly Gross income: $1021 $1021 x 2.15=$2195 $2195 – 90 = 2105
- 23. Child Support payments received When determining available income, exempt up to $50 of the total current monthly support. If the court ordered child support is less than $50 per month, then exempt only the amount received. For contributions from a non-responsible relative (e.g., grandparent), consider the full amount of the contribution as available income.
- 24. Self-Employment Eligibility for self-employed client is based on net income.
- 25. Examples of Unearned income Unearned income is all income other than that received in the form of salary for services performed as an employee or profits from self-employment (earned income). Sources of unearned income include: Social Security Award letter Veterans Award letter Workman’s compensation Company pension Unemployment Award Letter SDU/KIDS child support
- 26. Exercises Income Source Codes and calculations
- 27. Exercise 1 Example: Employer: Cardinal Health Gross: $1079.64 Frequency of pay: Bi-weekly Overtime: $6.04 (The overtime and gross pay have already been added together) Conversion $1079 x 2.15 = $2319
- 28. Exercise 2 Example: Employer: Metlife Gross: $1,599.68 Frequency of pay: Bi-weekly Overtime: $13.72 Conversion $1,599 x 2.15 = $3437
- 29. Exercise 3 Example Employer: Allied Services Gross amount: $1920 (pay frequency weekly) Check 1: 6/15/13 Overtime: $13.00 Question 1: What is the converted gross monthly amount? 1933 x 4.3 = 8311
- 30. Exercise 4 HOH: Sosa, Soccaro Resides in Aurora Category 96/Family Care There are two children on the case The father is not listed on the case No child care is provided No court ordered support is provided The father turns in a pay-stubs with gross bi-weekly income of: $178.25, $178.25 The mother turns in a pay-stub of gross-bi-weekly income of: $1251.11, $1362.10 After taking all allowable deductions, what is the total gross monthly countable income? What would be the potential recommendation for this case? 178 x 2.15 = 382 – 90 = 292 1251 + 1362 = 2613/2 = 1306 *2.15 = 2807 2807 – 90 = 2717 + 292 = 3009
- 31. Exercise 5 HOH: Ata, Amol Category 94/Family Care There is one child on the case Child support for $1,100 The mother receives $1,000 spousal maintenance monthly The mother turns in pay stub (weekly): $123.69 After taking all allowable deductions, what is the total gross monthly countable income? What would be the potential recommendation for this case?
- 32. Deduction Calculations Here is an example of how deductions would be calculated the client is receiving the Earned Income Exemption, Employment deduction and Child Care Expenses Gross income: $520 (Gross monthly income) Employment deduction: $90 $430 $30 deduction $400/3 = $133 (this is 1/3 deduction) 1/3 Deduction -$133 $267 -$30 Child Care -$200 $67 Countable income after deductions
- 33. Exercise 6 A mother, with an estimated due date of Nov 1, 2013 is on Mom’s and Babies. The mother has turned in paystubs stating she earns $300 bi-weekly. The mother has one child currently on the case and is 4-years old. The mother pays $25 per week for child-care and has provided proof of child-care payments from the provider. What is the mother’s countable income after deductions? 300 X 2.15 = $645 $645 – 90 = $555 $555- 30 = $525 $525/3 = $175 $525 – 175 = $350 $350 – 100 = $250
- 34. Questions?
Notas do Editor
- Speakers note: One of the verifiers
- WAG: 01-02-04 Income Calculations
- Speakers note: When we receive copies of pay stubs, it is important to understand all of the information that has been provided. If the paystub does not meet the validation points , the ES must ask the client to re-submit with the documentation with the approved information.
- Policy 01.02.04 Income calculation
- What is Earned Income?Earned income includes all the taxable income and wages you get from working or from certain disability payments.There are two ways to get earned income:You work for someone who pays youorYou own or run a business or farm
- PM: 15.04.02Note: If a person is paid weekly and receives less than 4 checks during a the month, or if the person is paid once every two weeks and receives less than 2 checks during the month, use the actual amount received.
- Speakers Note: Apply the All Kids Assist Income policy (PM 15-04-02) Use the All Kids Assist Policy to determine who to include in the standard. PM 15-06-00Examples of disregards and deductions are: $90 Employment deduction, Child-care expenses (up to $175 for children two and over, and up to $200 for children under two)$50 child support deduction and Mom’s and Babies $30 1/3
- Note:The income standard for all Medical Only programs is based on the number of persons included in the standard. If a pregnant woman is included, increase the income standard by the number of children she is expecting.If countable monthly income exceeds the Moms and Babies Income Standard, decide eligibility for FamilyCare Assist Spenddown or All Kids Assist Spenddown using the regular income standard. A pregnant woman cannot spenddown to the Moms and Babies standard. (PM 06.09.04)
- Note:The income standard for all Medical Only programs is based on the number of persons included in the standard. If a pregnant woman is included, increase the income standard by the number of children she is expecting.If countable monthly income exceeds the Moms and Babies Income Standard, decide eligibility for FamilyCare Assist Spenddown or All Kids Assist Spenddown using the regular income standard. A pregnant woman cannot spenddown to the Moms and Babies standard. (PM 06.09.04)How would you calculate the spendown for the adult?
- Deductions from Earned Income: 15-04-02b
- This person would be in a Spend-down
- Also show the class a note from case number: 942260000S99344 Danika SmithCase number: *174894 Erica King
- For this slide we have AnimationsStep 1: convert the weekly incomeStep 2: Subtract the $90 Employment deductionStep 3: Allowable business expenses if they are self-employed$90 employment deduction Child care expensesUp to $50 per month from current child support received
- There is animation on this page996 x 2.15 = 2141 – 90 = 20511022 x 2.15 = 2197 – 90 = 21072051 + 2107 = 4158The Family Assist standard for Group County II family of 4 is $445
- Policy 01.02.04 Income calculation
- Self employment business statement
- WAG: 08-02-06A complete list can be given to the participants as a hand-out. BENDEXBENDEX is a data exchange by which SSA exchanges Master Beneficiary Records (MBR) and earnings data with the State agencies on a daily basis. Examples of data from the MBR would include benefit rate, payment status or address. Click on the link for a full list of the BENDEX record data elements. (http://www.ssa.gov/gix/programsAndDataExchanges.html)Explain the SDU/KIDS child support
- Policy 01.02.04 Income calculation
- Period beginning: 1/28/2013Period ending: 2/10/2013Pay date: 2/15/2013
- Paystub must contain: Date (within the last month), employer name, employee name, frequency, pay amount, indication of taxes withheld (not always true indicator of earned income).Pay period began: 2/1/2013Pay period end: 2/15/2013Check date: 2/15/2013
- 1933 x 4.3 = 8311
- 123 x 4.3 = 528 – 90 = 438438 + 1,100 – 50 + 1000 =2488
- Step 1: convert to get the monthly income Step 2: minus the 90 employment deduction Step 3: minus the $30 deduction from the remainder in step 2 Step 4: Take the 1/3 of remainder in Step 3Step 5: Subtract the amount from Step 4 from the remainder in Step 3 (this is the completion of 30 and 1/3 deduction)Step 6: Subtract the child care expenses