H State Assistance Budgeting Income - Contract Income
 
(07/01/07 - 09/30/07)
Contract income is received by a participant based on a contract or legal document. The participant is paid for a specified length of time and a specified amount of income during that time.
 
The employer may pay contract income using any of the following methods:
 
Hourly or piece work rate
As a salary
Over a 12-month period
For less than a 12-month period
At completion of the period specified in the contract
 
Budget income received from contract employment as follows:
 
When the income is received PRIOR TO or ONLY DURING the time the work is performed complete the following:
Prorate the income over the number of months the contract covers.
Budget the income for each month of the contract, using the monthly conversion factor.
When the income is received IN EACH month of the contract, whether paid on a monthly or more frequent basis, complete the following:
Project the income using the appropriate income period.
Convert the income using the appropriate conversion factor.
Budget the income for each month of the contract.
(See Example Contract Income-sta)
When the contract specifies PAYMENT UPON COMPLETION of the work, complete the following:
Prorate the income over the number of months in the contract.
Complete the State Program Budget Record – GA/TC (FA-200) to determine the net income for each month. Apply the earned income deductions.
Total the net income for all months and budget as unearned income in the month the income is actually received. Treat any remaining income in the following month as a resource.