PM 10-01-03-a
In most cases the system converts income to a monthly amount. However, there are times when the worker must do it.
Converting income to a monthly amount is only done centrally on gross income amounts actually computed by the system. This includes all gross earned and unearned income entered on the ACM Actual Screen in which the monthly gross amount is then centrally computed by the system. The system does not convert monthly gross income amounts that it does not determine.
Staff must convert all income that:
- the worker provides to the system as the monthly amount and
- that is received by the client weekly or bi-weekly.
This may include:
- liability of a sponsor or
- diverted income amounts.
Paycheck Coding on ACM Actual Screen
Since budgeting for each six month period is prospective, you must indicate to the system on the ACM Actual Screen what the anticipated paychecks will be for the first fiscal month of that period. For example, in order to budget prospectively for July through December, enter paycheck amounts that are anticipated to be received in July.
To simplify the procedure on the ACM Actual Entry Screen, do the following:
- Enter the actual paycheck amounts and the corresponding paydates. For example, when the client provides the May paycheck stubs, enter those amounts and dates.
- If the client does not indicate any anticipated change to the amount of pay received, obtain an average from the paychecks provided (e.g., if 4 paychecks were received, drop cents from each paycheck, add up the 4 paychecks and divide by 4. If 5 paychecks, add all 5 paychecks and divide by 5).
- Enter that averaged amount as the first paycheck to be received in the following month (e.g., obtain an average of the 4 paychecks received in May and enter that amount for the first payday of June).
For situations in which the pay is received twice a month and the 2 paychecks are different amounts, because of normal fluctuations in income, add the paychecks together and divide by 2. Enter that amount as the first paycheck to be received in the following month.
- Use the continuation function to continue that averaged paycheck amount through the first fiscal month of the next six month budget period.
The system will then have the correct paycheck amount to use when it converts the income to a monthly amount.
Example 1: A mother with 3 children receives TANF and SNAP. Payment level is 
$474. She is employed. There is no unearned income.
At the end of February, the client is sent a Redetermination Application. The form asks her to report her last 4 pay stubs if income is received weekly. The form also asks if any changes are expected in the future.
The client completes the form and returns it with her pay stubs from February. She reports no expected changes. The amounts and paydates reported are:
$200 on 02/04,
$220 on 02/11,
$180 on 02/18, and
$240 on 02/25.
Using Best Estimate policy, determine the weekly gross amounts to be used. Since the client reported no anticipated changes, enter the paydates and actual amounts on the ACM Actual Screen. Add the 4 amounts up and divide by 4 to obtain an average.
$200
$220
$180
+240
$840
$840 divided by 4 = $210
Enter that amount for the first pay date of March and use the continuation function to carry the $210 amount through the paydates for April.
Now the system has the April pay date entries it needs to convert the income to a montly amount. The system adds the amounts up, divides by 4, and multiplies by 4.3.
$210 X 4.3 = $903
$903 is the gross earned income (code 802) that will be used to determine eligibility, cash benefit amount, and food stamp benefits for April through September.
After the 3/4 deduction is applied, the client will receive a $208 cash benefit.
$903 X 3/4 deduction = $677.
$903 - $677 = $226.
$474 Payment Level - $226 = $208.
The client will receive a Redetermination Application at the end of August, which will be due in September, and will be used to determine eligibility and benefits for October through March of the following year.
Example 2: The same situation as Example 1, except that the client also reports that she received a raise and expects to receive an increase in gross weekly income.
Using Best Estimate policy, the local office anticipates that the client will receive $250 a week. The local office enters the actual paycheck and pay date amounts for February. The worker then enters $250 for the first pay date of March and uses the continuation function to carry that amount through April. For the payment month of April, the system adds up the 4 checks, divides by 4, and multiplies by 4.3.
$250
$250
$250
+250
$1,000
$1,000 divided by 4 = $250
$250 X 4.3 = $1,075
The gross earned income (Item 90 code 802) used to determine eligibility and benefits is $1,075.
After the 3/4 deduction is applied, the client will receive a $205 cash benefit for April through September.
$1,075 X 3/4 deduction = $806.
$1,075 - $806 = $269.
$474 Payment Level - $269 = $205.
Example 3: A 17-year-old and her child live with the teen's mother. The teen and her child receive TANF. The teen's mother is employed. Parental liability must be determined.
Since the parent has earned income, the case is coded in Item 36 with an R.
The client receives a Redetermination Application at the end of May. The parent earns $213.72 a week and her earnings are not expected to change. Using Best Estimate policy, determine the weekly gross amounts to be used. Since the client reported no anticipated changes, enter the paydates and amounts on the ACM Actual Screen. Add the 4 amounts up and divide by 4. The worker converts the income to a monthly amount as follows:
$213 received 05/04
$213 received 05/11
$213 received 05/18
$213 received 05/25
$852
$852 divided by 4 = $213
$213 X 4.3 = $915.90
$915.90 = $915 (drop cents)
$915 is the gross amount of monthly parent income that is used to determine parental liability. See PM 10-04-04 to determine the parent liability amount.
