Determine ongoing eligibility when a client reports employment or employment is discovered. Use Best Estimate policy and convert income to a monthly amount (see PM 10-01-03-a), if paid weekly or bi-weekly, to anticipate income expected to be received during the first payment month that can be affected.
Step 1: Determine if the total income exceeds the Payment Level after allowing the 3/4 earned income deduction and, if applicable, the adult/teen/child care disregard.
If nonexempt income exceeds the Payment Level, cancel cash benefits.
Step 2: If eligibility exists in Step 1, anticipate the amount of income to be received in the first payment month that can be affected.
When budgeting earned income, always allow all the earned income deductions the client is eligible to receive, even if earnings were not reported in a timely manner. See PM 08-01-03 regarding timely manner.
When a case is ineligible and an overpayment exists, refer for recovery. If eligibility continues, start recoupment action. See PM 23-05-01 for recoupment or recovery of overpayments.
If the client is eligible, code the case to indicate the presence of earned income for both budgeting and REDE purposes. For any month prior to the receipt of a full month's pay, budget only the amount anticipated. Beginning with the first full month earnings will be received, convert income to a monthly amount (see PM 10-01-03-a) to determine the budgetable income if earnings are received weekly or bi-weekly.
The client is sent a REDE Form at the next scheduled time (see PM 19-02-01).