Prorating Income - Overview
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.
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When the participant receives contract, education, or self-employment income, see the following policy and procedures:
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