Department of Human Services

Food Stamp Online  Policy Manual

Treatment of Income

Revised: 

22.2

CONVERTING INCOME TO MONTHLY AMOUNTS

Food Stamp Table of Contents

1240-1-4-.17(2)

Since need determination and level of benefit calculation are made on a monthly basis, income and expenses available to a HH must be stated in monthly amounts. The following methods shall be used to convert income to monthly amounts for purposes of determining prospective eligibility on active cases and benefit amounts.

 

(a)   Hourly or Piece Work Wages

 

Estimate the amount of income to be expected as the result of a week’s work based on hours/days produced. Use the weekly earnings figure to determine monthly amount.

 

(b)   Weekly Income

 

Multiply weekly income by 4.3 to determine monthly income.

 

(c)    Bi-Weekly Income

 

Multiply amount received each two weeks by 2.15 to determine monthly income.

 

(d)   Semi-Monthly Income

 

Add the two amounts received to determine monthly income.

 

(e)   Monthly Income

 

When a wage earner is employed and paid on a regular monthly basis, accept his/her verified monthly wage/salary as monthly income.

           

(f)     Annual Income

 

Divide annual income by 12 to determine monthly income.

 

1.      Households which, by contract or self-employment, derive their annual income either once annually or over a period of time shorter than one year shall have the income annualized over a 12-month period. That is, income will be anticipated for and averaged over the full 12 months. Such groups include farmers, certain school employees employed on a contractual basis, sharecroppers, and other self-employed persons. This does not apply to migrants, seasonal farm workers, persons who receive income on an hourly or piece work basis. In these latter instances, income is counted in the months received. If a person is under contract, the 12-month period should begin the first month the person receives payment under contract. If the self-employment income is received once annually, the income would be averaged over a 12-month period beginning with the month the income is received.

 

Example:  An individual applied for benefits in December with annual income, which was received in September. The annual income would be averaged for September through August and shown in the Food Stamp budget for December through August.

 

2.      Income which is received annually, or which is an integral part of annual income, will be totaled and prorated over 12 months. Such income is usually earned income and derived from a farming or other self-employment enterprise. Income which, by contract or otherwise, could be generally considered as annual income, but which is received in a shorter period of time will be considered as income in the months during which it is intended to cover. An estimated average income from migrant labor, seasonal farm work, or other seasonal employment will be considered during the months such income is received.

 

Glossary of Terms

Food Stamp Table of Contents