904
Determining the Best Estimate
|
Child Care -
ARW, Chapt. 1, Purchase
of Service Food Stamps - 7
CFR 273.10 POWER - ARW, Chapt. 1, Section 9 |
Determine eligibility prospectively for all benefit
months using the best estimate of income
anticipated to be received during the benefit month.
A.
"Best
Estimate" of Prospective Gross Countable Income
1.
Calculate income in the month
of application as follows when the income
is from a terminated source:
a. Use
the “actual” income received, prior to
the date of application or when all paychecks cannot be reasonably
anticipated, do not average the total or convert the income.
Example: An individual’s regularly scheduled pay dates are
on a weekly basis. The individual receives a final pay check
on the 1st pay date of the month in the gross amount of
$700.00. Application date is after the 1st pay
date. The “actual” amount of income for the month is $700.00.
2. If the amount of
income that will be received, or when it will be received, is
uncertain, that portion of the household’s income that is uncertain shall
not be counted; and
a.
DOCUMENT clearly in the case
record to explain why all checks were not counted; or
b. If a paycheck can be reasonably anticipated for all pay periods and the amount(s) are known; add the gross income of all checks, average and convert the income; and
c.
Recalculate the second benefit month,
using zero income, when the income ceases in the
month of application and no other
income is anticipated.
3.
Calculate income in the
month of
application
as follows when a pay check is not
received by an individual for each regularly scheduled pay date in the
month:
a.
Use the
“actual” income received, do not
average the total or convert the income; and/or
Example: An
individual’s regularly scheduled pay dates are on a weekly basis. The individual receives a
check on the 1st
and 4th pay dates of the month in the gross
amount of $300.00
each. The
individual does not
receive a check on the 2nd and 3rd
pay dates of the
month. The “actual”
amount of income for
the month is $600.00.
b.
Use the best
estimate of any income due
the applicant when the “actual”
amount is
unknown; and
c. Use
a combination of a. and b. when both occur; and
d. Re-calculate
non-reflective income for the second benefit month using a new best
estimate,
average the income and convert, if appropriate.
4. Calculate
income in the month of application
as follows when a pay check is received
by an individual for each regularly scheduled pay date in the month,
but a pay
check contains partial income and/or non-reflective income and/or a pay
rate
increase:
a.
Add
the gross income of all checks, average and convert the income; and
Example: An individual
works 40 hours per week and the regularly scheduled pay dates are on a
weekly
basis. The
individual receives pay on
the 1st and 2nd pay dates
of the month earning $234.00 at
$5.85 per hour for each pay date.
The
individual receives an hourly rate increase to $6.00 per hour and is
reflected
on the 3rd and 4th pay
checks: $6.00 x 40
= $240.00.
$234.00 +
$234.00 + $240.00 + $240.00 = $948.00 divided by 4 = $237.00 x 4.3 =
$1019.10.
b.
Re-calculate
the income for the remaining months of the certification period using
income
that is best reflective of future circumstances, re-average and convert.
5. Anticipate
income for the benefit month
in which it is available.
6. Use
the income
of the minor parent and
her/his child(ren) but
DO NOT use the income of the minor’s parent(s) to determine Child Care
eligibility.
7 Review
the best estimate each time a
change in circumstances is reported or
becomes known and at the time of a periodic
review/recertification.
8.
Use the following as the basis for
estimating gross countable income
for
the benefit month(s):
a.
Verify previous income
by pay stubs or an employer’s statement when there is a 30
day history, but do not exceed 60 days history, and DOCUMENT the case record indicating how the best estimate was calculated when a change
in circumstances is not expected.
(Both
earned and unearned income must be
included in the estimate.)
b.
An employer’s statement or other
verification should be used as the basis for the
best estimate when an applicant
or recipient does not
have a 30
day history or the history is not reflective of the future. (Both
earned and
unearned income must be included in
the estimate.)
c. Estimate
tips, commissions, overtime,
differential pay, etc., when the employment
is of such a nature one or more of these are likely.
d. Use
the mid-point (i.e. 25 to 30 hours =
27.50 hours) when the hourly schedule is fluctuating unless the
schedule is not
reflective of future circumstances.
e. Use
income and business expenses
(see
Section 902)
that fairly represent the prospective benefit
month(s) for a self-employed applicant
or recipient whose income
is
irregular.
f.
Prorate or average income from self-employment, employment
on a contractual basis or income
received intermittently over the period covered by the income
(quarterly,
semi-annual or yearly basis) unless the income
is not indicative of future months.
g.
Allow SNAP assistance units
to elect, in writing, to have the income averaged
over the certification
period.
h.
Count monthly or semimonthly income as
follows when a problem with the payroll (i.e., mail or computer
problems)
causes additional checks in one month:
(1)
If payment is regularly received
semimonthly but a
problem causes three checks to be received in one month, count only two;
(2)
If payment is
regularly received monthly but a problem causes two checks to be
received in
one month, count only one.
i. Recognize
the method(s) used to anticipate
gross countable income during the
benefit month will vary according to
the circumstances in each case.
(1) Come to an agreement with the client when deciding the best approach to determine the best estimate.
(2) DOCUMENT clearly
and thoroughly in the case record
the method used and the
rationale for the best estimate.
B. Best
Estimate For Cases With
An Income History
1.
Review the income documents and
information obtained during
the interview to determine what income is best reflective of future
circumstances.
2.
Base the best
estimate upon the verified
income history of 30 days and not to exceed 60 days when it
is
representative, and no changes are expected, to anticipate income for
the
benefit month(s).
a. Add
verified gross income from each pay
period; and
b. Divide
the total by the number of pay
periods considered; and
c. Multiply
gross income by 4.3 for weekly
amounts, by 2.15 for bi-weekly amounts,
by 2 for semi-monthly amounts and by one for monthly amounts.
3. DOCUMENT
in the case record the type of
verification and the rationale actually used in the determination of
the best estimate.
C.
Best
Estimate For Cases
Anticipating a Change(s) or With No
Income History
1. An
employer's statement when the income history
is not representative of
current or future benefit months or
is not available, beginning a new
job, increase/decrease in hours worked or rate of pay, etc.;
2. Use
the client's and your own reasonable
expectations of future circumstances to arrive at a best
estimate;
a. Multiply
gross income by 4.3 for weekly
amounts, by 2.15 for bi-weekly amounts,
by 2 for semi-monthly amounts and by one for monthly amounts; and
b. Add
the anticipated monthly gross income
from all sources.
3.
DOCUMENT
the type of verification and the computation of the amount of
anticipated income in the case record.
SNAP – 7CFR 273.2, .12 |
D. Changes
Reported After the Interview in the Initial Month, But
Before the Notice of Eligibilit
If a household voluntarily reports a change in income, ie. beginning a new job, before the case has been authorized in the initial month, it is required of the worker to determine if the reported change affects eligibility.
1. The household must be given 10 days to provide the income verification;
2. If the 10 day verification time frame expires within the 30 day application time frame and the verification is provided timely, benefits would be paid back to the date of the application;
3. If the 10 day verification time frame will cause the application to go past the 30 day application time frame and the client returns the verification within the 10 day time frame, benefits would be paid back to the application date;
4. If the household does not provide the verification within 10 days from the request for verification and the 30 day processing time frame has expired, the delay in processing would be the fault of the household and the household would lose its entitlement to benefits for the month of application;
5. If the income verification is received at any time in the second
30 days, the second month’s benefits would be prorated from the
date the household provides the verification.
Scenario - Employer, TrailSide Diner, states Dodie Goodie is beginning employment on 2/1. She will be working 30-40 hours per week (fluctuating) and will be paid $4 per hour. The employees are paid on a bi-weekly basis. Since Dodie is a waitress, the employer states she will be making about $50 per week in tips.
Best Estimate -
Use the mid-point (35 hours in this case) when the hourly schedule is fluctuating.
Multiply 35 hours by the hourly rate of $4 for a weekly total of $140.
Multiply the weekly total of $140 by 4.3 weeks to convert the income to a monthly total of $602.
Multiply the expected tips of $50 per week by 4.3 weeks to convert the income to a monthly total of $215.
Add the monthly wages of $602 and the tips of $215 for a best estimate of $817 per month.
Scenario - Employer,
Bette’s Dairy Farm, states Dave Donut is beginning employment on
3/1. He will be paid $400 on the 1st of each month and $400 on
the 15th of each month. This is a stable source of semi-monthly
income with no fluctuation.
Best Estimate -
Multiply $400 by two for a monthly best estimate of $800.
Scenario
- Employer, Shacks Radio Store, states Hamm Michaels will begin
working for them on 5/1. He will earn a stable income of $150 per
week and will be paid every other Friday (bi-weekly).
Best Estimate -
Multiply $150 by two for a bi-weekly total of $300 and then multiply the $300 by 2.15 for an average monthly total of $645.
Scenario - An ongoing client reports she recently received a cut in hours at her employment. The cut is effective on the 15th as she is paid semi-monthly. The employer’s statement indicates her hours have
changed
from 20-25 per week to 15-20 per week. Her hourly rate is $4.25.
Due to the cut, she has applied for unemployment benefits. Her
award letter states she will receive $50 per week.
Best Estimate -
Use the mid-point number of weekly hours of 17.5 and multiply this by the hourly pay rate of $4.25 for a total of $74.375.
Multiply the weekly total of $74.375 by 4.3 weeks per month for a total of $319.812 rounded to $319.81.
Multiply the average weekly unemployment benefits by 4.3 for an average monthly total of $215.
Scenario -
Applicant provides wage stubs for verification of income as has
worked at the same job for some time and does not expect any
changes. The wages are as follows: June 1, $150; June 15, $165;
July 1, $155; July 15, $145.
Best Estimate -
Add the wage stubs for a total of $615.
Divide the total of $615 by the number of wage stubs (4) for an average of $153.75 per pay period.
Multiply the average of $153.75 by 2 pay periods per month (semi-monthly) for a monthly total of $307.50.
* It is advisable to obtain an employer’s statement whenever
possible, convert the income to a weekly amount and multiply the
amount by 4.3.
* However, when wage stubs are reflective of
future circumstances, verify a 30 day history but DO NOT exceed 60
days history.
* DOCUMENT the case file indicating how the best estimate was
calculated.
* Both earned and unearned income must be considered in the best estimate.
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