This is an instructor led presentation for the staff regarding budgeting for our client.
- 1.Income CalculationsWork ProjectCopyright 2012 MAXIMUS. All Rights Reserved
2. Course Objectives After completing this module, you will be able to: Understand the purpose of income calculationsIdentify the various pay frequenciesKnow the difference between countable income vs. non-countable incomeDetermine countable monthly incomeIdentify income source codes Earned incomeGovernment benefitsCountable income codesExercisesData 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 periodsBefore 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 CodesExtract files will have income codes, therefore it is important to enter the correct income code. 5. Pay Periods Weekly: employee is paid each weekBi-Weekly: employee is paid every other week (26 times a year)Twice-a-month: refers to pay days that occur 24 times a yearMonthly 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.PaystubsSocial Security BenefitsSelf-EmploymentChild-Support received 9. Not Countable Income The following is a list of income that we cannot use towards the budget.Educational LoansTax RefundsLump sum inheritanceChild Support being paid out of the householdSSI 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 paymentMultiply the amount by 2.15 if the person receives bi-weekly paymentsMultiply by 2 if the person is paid twice a month 11. Income FHP Multiple paystubsWhen 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 FHPs, deduct the following items:Allowable business expenses if they are self-employed$90 employment deductionChild care expensesUp 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 = 4,1284,128 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 = 275Remember 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 OvertimeFrequency 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 letterVeterans Award letterWorkmans compensationCompany pensionUnemployment Award LetterSDU/KIDS child support 26. Exercises Income Source Codes and calculations 27. Exercise 1Example:Employer: Cardinal HealthGross: $1079.64Frequency of pay: Bi-weeklyOvertime: $6.04(The overtime and gross pay have already been added together)Conversion$1079 x 2.15 = $2319 28. Exercise 2 Example:Employer: MetlifeGross: $1,599.68Frequency of pay: Bi-weeklyOvertime: $13.72Conversion$1,599 x 2.15 = $3437 29. Exercise 3 ExampleEmployer: Allied Services Gross amount: $1920 (pay frequency weekly)Check 1: 6/15/13Overtime: $13.00Question 1: What is the converted gross monthly amount?1933 x 4.3 = 8311 30. Exercise 4 HOH: Sosa, SoccaroResides in AuroraCategory 96/Family CareThere are two children on the caseThe father is not listed on the caseNo child care is providedNo court ordered support is providedThe father turns in a pay-stubs with gross bi-weekly income of: $178.25, $178.25The mother turns in a pay-stub of gross-bi-weekly income of: $1251.11, $1362.10After 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, AmolCategory 94/Family CareThere is one child on the caseChild support for $1,100The mother receives $1,000 spousal maintenance monthlyThe mother turns in pay stub (weekly): $123.69After 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 ExpensesGross income:$520 (Gross monthly income)Employment deduction:$90 $430 $30 deduction$400/3 = $133 (this is 1/3 deduction)1/3 Deduction-$133 $267 -$30Child Care-$200 $67 Countable income after deductions 33. Exercise 6 A mother, with an estimated due date of Nov 1, 2013 is on Moms 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 mothers 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?