Procedure: Budgeting Contract Income
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This section provides information about procedures for budgeting contract income.
Procedures
Review the Contract Income Verification and clarify the income with the participant or employer to determine how to budget the income. Any of 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 a participant works?
●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? (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?
Average contract income over 12 months when one or more of the following apply:
●The contract covers 12 months.
●The participant is paid once every 12 months.
●The contract covers less than 12 months, and the participant indicates that the contract amount is their annual income.
●The contract covers less than 12 months and is the participant’s primary source of income.
Budget the prorated income for the 12 months unless the contract employment has been terminated.
Prorate contract income over the specified period it is intended to cover when all of the following apply:
●The contract covers less than 12 months.
●The contract income does not represent the participant’s annual income.
●The contract is not the participant’s primary source of income.
●The participant is not paid on an hourly or piecework basis.
Documentation must support the contract income budgeted.
See Projecting Income when the contract states a participant is paid based on an hourly or piecework basis.
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the HEAplus Authority to Release signed statement.
AZTECS Keying Procedures
Average Over 12 months
For a 12-month contract, key all of the following on EAIC:
●The WA Earned Income Code in the INC TYPE field.
●The AN Frequency code in the FREQ field.
●The pay date in the DATE PAID field (Key the interview date in the DATE PAID field when the date paid cannot be determined.)
●The number of hours in the HOURS field.
●The gross income specified in the contract is in the GROSS AMOUNT field.
Received for a Specified Period
For a contract for less than 12 months, key all of the following on EAIC:
●The WA Earned Income Code in the INC TYPE field.
●The MO Frequency Code in the FREQ field.
●The pay date in the DATE PAID field (Key the interview date in the DATE PAID field when the date paid cannot be determined.)
●The number of months the contract covers in the NUMBER OF PERIODS field.
●The gross income specified in the contract in the GROSS AMOUNT field.
Received Hourly or by Piecework
Project the contract income received hourly or on a piecework basis by keying all of the following on EAIC:
●The WA Earned Income Code in the INC TYPE field.
●The appropriate Frequency Code in the FREQ field.
●The pay date in the DATE PAID field.
●The number of hours worked per pay period in the HOURS field.
●The gross income received per pay period in the GROSS AMOUNT field.
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last revised 10/02/2023