State Assistance Budgeting Income - Averaging Income
Averaging income is a method used when the pay history indicates income is received on a regular basis and no changes are expected. The income may vary.
Income received within the appropriate income period is averaged and converted to project income for the benefit month.
Complete the following for each participant with income and each source of income to arrive at the converted monthly income:
●Total the gross income.
●Divide the total by the number of pay periods to arrive at an average income per pay period.
●Drop the third number after the decimal point of the average income per pay period.
●Multiply the average income per pay period by the conversion factor to arrive at a
converted monthly total.
●Drop the third number after the decimal point of the converted monthly total and budget this amount.
Hours may need to be averaged when the participant reports a change in the hourly rate of pay and the number of hours worked in is expected to continue.
Complete the following to determine the average hours worked per pay period:
●Total the number of hours worked in the income period used.
●Divide the total hours by the number of pay periods the hours cover.
●Drop the third number after the decimal point of the average hours per pay period.
●Multiply the average of the hours by the new rate of pay to obtain the average income per pay period.
●Multiply the average income per pay period by the applicable conversion factor to arrive at the
converted monthly total.