FAA4.I Earned Income (EAIN EAIC) : 06 Budgeting Earned Income - Overview : F Budgeting Contract Income - Overview : .01 Budgeting Contract Income - Prorated Over a 12‑Month Period
.01 Budgeting Contract Income - Prorated Over a 12‑Month Period
 
(01/01/20 - 12/31/20)
Prorate contract income over a 12-month period when one or more of the following apply:
 
The contract covers a 12-month period.
The participant is paid once every 12 months.
The contract covers a period less than 12 months and the participant indicates that the contract amount is their annual income.
The contract covers a period less than 12 months and the contract is the participant’s primary source of income.
 
NOTE When the contract states the participant is paid based on an hourly or piece work basis, see Received Hourly or by Piecework.
 
Key the following on EAIC:
 
The OA or OF Earned Income Code in the INC TYPE field.
The AN Frequency code in the FREQ field.
The number of hours in the HOURS field or the hourly rate in the HR. RATE field.
The gross income specified in the contract in the GROSS AMOUNT field.
 
 
NOTE Budget the prorated income for the 12-month period unless the contract employment has been terminated.
 
Documentation must support the contract income budgeted.