Budgeting Contract Income - Overview
(01/01/20 – 12/31/20)
Budget contract income in one of the following ways:
When the contract represents the participant’s primary source of income, see Prorated Over a 12‑Month Period
When the contract covers less than 12 months, is not the participant’s primary source of income, and does not represent the participant’s annual income, see Received for Specified Period
When the participant is paid by the hour, for overtime, or on a piecework basis, see Received Hourly or by Piecework
To determine how to budget the income, review the Contract Income Verification and clarify the income with the participant or employer. The following questions may assist with the clarification:
What period is the contract intended to cover?
What period is the employee expected to work?
Is the participant paid only for the number of hours worked?
Is the participant guaranteed to receive the full amount listed in the contract regardless of how many hours are worked?
Is the participant receiving overtime or differential pay?
How often is the income paid?
Does the participant receive a lump sum payment at the start, end or anytime during the contract period? (Include any lump sum payments in the prorated contract amount)
Is the participant paid outside of the specific period the contract covers?
How much income does the participant receive for the contract?
Does the contract income represent the participant’s annual income?
Is the contract the participant’s primary source of income?