V Budgeting Contract Example 1

FAA6.N Examples : 25 Earned Income (EAIN/EAIC) Examples : V Budgeting Contract Example 1

Harvey provided a signed contract covering the school year, August 7 to May 24. The contract stated the following information:

In consideration for services rendered, the School District agrees to pay the employee the sum of Step 16 ($17.47 per hour - $20,125.44) in accordance with the district’s salary schedule for the period of this contract.

Harvey states that his contract income is intended for his annual income from his job and is his primary source of income. Harvey provided the following pay stubs:

Date	Rate	Hours	Gross
10/19	774.00	54	774.00
11/02	774.00	57	774.00
11/16	774.00	82	774.00

The employer verified that Harvey chose to be paid for 10 months and he is guaranteed to receive the full salary amount of $20,125.44 regardless of the number of hours he worked.

On EAIC, key the following:

INC TYPE: WA		FREQ: AN		NUMBER OF PERIODS:
PERIOD	DATE PAID		HOURS	HR. RATE	GROSS AMOUNT
01	08/07			17.47	20125.44

●Document the method used to determine a monthly amount in the DOC field and press ENTER.

AZTECS divides the gross income, $20,125.44, by 12 to calculate the monthly amount. The monthly amount is $1,677.12