FAA4.I Earned Income (EAIN EAIC) : 06 Budgeting 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
 
(07/01/13 – 10/31/09)
Prorate contract income over a 12-month period when it is intended for the participant’s annual income. This includes contracts that cover period of time less than 12 months.
 
Prorate contract income over a 12-month period when one or more of the following applies:
 
The contract covers a 12-month period.
The participant is paid once every 12 months.
The participant is guaranteed to receive the full amount listed in the contract regardless of any of the following:
Number of hours worked
Frequency of pay
Amount of work that was completed
 
For CA and NA, 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 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.