E Prorating Income - Overview
(10/01/13 – 12/31/13)
Prorating income is used to evenly spread a participant’s income over the period of time the income is intended to cover. The following are types of prorated income and how it should be budgeted:
Income received once a year (annually); divide the annual gross amount by 12.
Income received once every two months (bi-monthly); divide the bi-monthly gross amount by two.
Income received once every three months (quarterly); divide the quarterly gross amount by three.
Income received twice a year (semi-annually); divide the semi-annual gross amount by six.
When the participant receives contract, education, or self employment income, see the following policy and procedures: