N Change in Rate of Pay Example

FAA6.N Examples : 25 Earned Income (EAIN/EAIC) Examples : N Change in Rate of Pay Example

Change in Rate of Pay Example

On 03/01, Angela reports an increase in the rate of pay effective for her 03/06 check. Angela provides the following verification of income and that her hours will continue to vary:

Date Paid	Hours
01/30		38.4
02/06		33.6
02/13		35.0
02/20		37.1
02/27		34.0

Manually average the hours in the income period.

178.1	Total of hours
/ 5	Divided by the number of periods
35.62	Average of hours

For April, key the following on EAIC:

INC TYPE: WA		FREQ: WK		NUMBER OF PERIODS
PERIOD	DATE PAID		HOURS	HR. RATE	GROSS AMOUNT
01	03/06		35.62	5.55
DOC: Average hours of 01/30 to 02/28 = 35.62 New rate effective 03/06

NOTE Leave the GROSS AMOUNT field blank.