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903 Determining the Best Estimate
Utilize the A. "Best Estimate" of Prospective Gross
Countable Income 1. Anticipate income as follows when the income
is discontinued in the month
of application. a. Use the actual income received in the month
of application; and/or 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. Recalculate the second benefit month, using zero income, when the income
ceases in the month of application
and no other income is anticipated. 2. Anticipate income for the benefit month
in which it is available.
3. 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. 4. Review the best estimate each time a change in circumstances is reported or becomes
known and at the time of a periodic
review/recertification. 5.
DO NOT recalculate the best
estimate for Family Care
until the 12 month review; and 6.
DO NOT recalculate the
best estimate for 12M unless there is a job loss and determine
if eligibility exists for the adult in another medical coverage group. 7.
Use the following as the basis for estimating gross countable
income for the benefit month(s): a. Verify previous income by pay stubs when there is at least 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. Require an employer statement or other verification
as the basis for the best estimate
when an applicant or recipient does not have at least 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 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. e. 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. Exception: Allow the Family Care/children’s assistance unit to have the income anticipated on a month-by-month basis rather than over the period covered when advantageous to the assistance unit. e.
Allow Food Stamp assistance
units to elect, in writing, to have the income
averaged over the certification period; f.
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. h. 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 at least 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 1 for monthly amounts; and d. Round up to the nearest dollar to determine
the monthly amount to be anticipated for the benefit month(s). Exception: Allow the
Family Care/children’s assistance unit to have the income anticipated on a month-by-month basis rather than using the
4.3 or 2.15 conversion when advantageous to the assistance unit. 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. Require 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
Exception: Allow the Family Care/children’s assistance unit to have the income anticipated on a month-by-month basis rather than using the 4.3 or 2.15 conversion when advantageous to the assistance unit. b. Add the anticipated monthly gross income from all sources; and c. Round up to the nearest dollar to determine
the monthly amount to be anticipated for the benefit month(s). d. DOCUMENT
the type of verification and the computation of the amount of anticipated
income in the case record. D. Use the Best Estimate of Income form ( **************************************************************************** NOTES: |