Wages and Salaries
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This section includes information about earned income received as wages or salaries.
Policy
Wages and salaries are considered compensation for services of an employee. A participant is considered an employee when the person or business they work for is responsible for any of the following:
●Paying the participant’s withholding taxes (e.g., FICA, federal withholding, etc.)
●Providing work related training to the participant.
●Covering the participant’s liability insurance or workers' compensation.
●Providing benefits, such as insurance, pension, or paid leave to the participant.
●Reimbursing the participant’s work-related expenses.
●Controlling and limiting the participant’s work hours and the manner in which the work is performed.
NOTE A participant is not considered an employee when they are self-employed(g).
The gross income (amount before deductions) is countable. This includes, and is not limited to, any of the following:
●Cafeteria plan deposits.
●Wages paid in the form of cryptocurrency(g).
NOTE FAA uses the current market value(g) of the cryptocurrency, measured in U.S. dollars, as of the date it was received.
●Taxes and Federal Insurance Contributions Act (FICA).
●Garnishments.
However, FAA removes income types that are not countable from the gross amount. This includes, and is not limited to, any of the following:
●Repayment of wage advances.
●Earned Income Tax Credits (EITC) that are included as part of the regular wages that are not countable. (See EITC for additional information.)
●Reimbursements that are not countable. (See Reimbursements for additional information.)
●Flex credits that are not countable. (See Flex Credits for additional information.)
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Procedures
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.
Review with the participant whether their pay includes income types that must be keyed separately and removed from the gross amount including any of the following:
●Bonuses and incentives (See Bonuses and Cash Incentives for separate keying procedures.)
●Earned Income Tax Credits (EITC)
●Flex credits (See Flex Credits for separate keying procedures.)
●Reimbursements from the employer (See Reimbursements for separate keying procedures.)
●Repayment of wage advances
When something listed within the gross income amount must be removed, complete all of the following:
●Manually subtract the amount to be removed from the gross income amount.
NOTE When there is more than one, continue this process until left with only countable wages.
●Determine the wage budget. When appropriate, enter the budget in AZTECS through the current system month using the wage Income Type Code identified in AZTECS Keying Procedures.
Tips income can be budgeted together or separate from the normal wages depending on how the tips are obtained. (See, Tips and Gratuities for keying procedures.)
See Income Budgeting for budgeting procedures.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
The participant has the primary responsibility for providing verification. (See Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for earned income include, and are not limited to, any of the following:
●System interface(g) when the participant agrees that the information is accurate.
●A copy of a paycheck stub.
●Copy of checks when the gross earnings are listed.
●A printout from a third-party payroll verification source provided by the participant.
●Third-party payroll verification sources when the employer uses the verification source as its legal agent to provide payroll services or respond to inquiries about employee records. (See Third-Party Payroll Verification Sources(g) for FAA approved sources, additional information, and instructions for requesting additional sources.)
●A New Employment Verification (C005) notice that is completed, dated, and signed by the employer or their payroll authority. To be considered complete, the statement has to include all of the following:
Name, address, and telephone number of the employer
Gross pay for the periods needed
Frequency of pay (e.g., weekly, monthly, quarterly, etc.)
Day of the week or day of the month pay is received (e.g., Fridays, 5th and 20th of the month, first of the month, etc.)
Any expected change in pay
●For new or current employment verification, a completed Verification of New/Current Employment (FAA‑0053A) form that includes a date and the signature of the employer or their payroll authority.
●For terminated employment verification, any of the following completed items that include a date and the signature of the employer or their payroll authority:
Verification of Terminated Employment (FAA-1701A) form
Verification of Terminated Employment (C019) notice
●Letter from the agency providing government-sponsored training.
●Leave and Earnings Statement (LES) from the military.
●A collateral contact with the employer or their payroll authority.
NOTE Collateral contact is not used when contacting the employer would jeopardize the participant's employment or when the employer does not accept telephone verification.
●Participant statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
NOTE Many companies do not allow verification over the telephone. When an FAA-0053A or FAA-1701A must be completed by any of the following, see the company’s contact information to determine where FAA staff must send the form:
AZTECS Keying Procedures
Key the budgeted wage or salary amount on EAIC using the WA Earned Income Type Code.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Legal Authorities
AAC R6-12-501
7 CFR 273.9(b)(1)(i)
last revised 04/22/2024