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Converting to a monthly amount

To convert income a client receives more often than monthly to a monthly amount, determine if the payments occur in a regular pattern and what pattern the payments follow.

How consistently is the client paid?

You must determine how consistently a person is paid to anticipate their income. Does the household receive their pay at regular or irregular intervals?

Irregular Pay

  1. You must add all payments received for each month that we have income verification. You will get the total amount received in each of these months.

  2. You will then average the monthly totals to get the representative monthly total.

Example:

The client applies for Child Care on November 1, 2018. If the client started working on August 15, 2018 and received pay of $300 on September 25, 2018, of $500 on October 15, 2018, and of $600 on October 16, 2018, first find the monthly totals for September 2018 and October 2018. Exclude the partial months of August 2018 and November 2018 since these are not complete months and not representative of the client's future income.  

Sept 2018: $300. ($300 was the only amount received in this month)

Oct 2018: $1100 ($500+$600=$1100)

Average the monthly amount.

$1100+$300=1400/2 Months=$700.

Regular Pay

Determine how often the client is paid: Weekly, Bi-weekly, Bi-Monthly, or Daily.

  1. You must average the submitted payments (Only count representative payments—payments that are likely to recur).
  2. After you have the average payment amount, you multiply by the appropriate conversion factor.
    • Income received weekly is multiplied by 4.3.
    • Income received twice a month is multiplied by 2.
    • Income received every two weeks is multiplied by 2.15.
    • Income received on a daily basis is converted to a weekly amount then multiplied by 4.3 only when there is a consistency in days worked each week and a regularity of pay dates. Add up all income received per month and average the income over the number of months the client provided payment information.

EXAMPLE 1:

If the client starts working on August 15, 2018 and receives checks of $275 on August 21, $600 on September 4, and $625 on September 18, you would first need to determine how often the client is paid.

A MICAL screenshot of August 2018. A MICAL screenshot of September 2018.

The client is receiving regular payments every two weeks. This is biweekly pay.

Next, exclude the August 21, 2018 gross pay amount since this first full check looks nothing like the subsequent pay amounts and is not likely to recur. 

Eliminating this payment gives you the gross pay amount that you enter in FACS.

Be Aware Earned income uses the MICAL tool to calculate and enter income. See the Quest instructions for how to use this tool.

MICAL calculates income as you would if you did it yourself. Average the September 4, 2018 and September 18, 2018 gross pay amounts. $600+$625=$1225/2=$612.50.

Finally, convert the average representative pay amount into a monthly pay amount.  $612.50*2.15=$1316.87.

Example 2:

The client applies for Child Care on October 30, 2018. If a client receives child support payment of $156 on September 1, 2018, $200 on September 8, 2018, $100 on September 15, 2018, $150 on September 29, 2018, $180 on October 6, 2018, $200 on October 13, 2018, $150 on October 20, 2018, and $200 on October 27, 2018, determine how often the client is paid.

A MICAL screenshot of September 2018.  A MICAL screenshot of October 2018.

The calendar shows weekly payments. There are payments each Saturday except for September 22, 2018. Since there is a pattern of regular payments except for the September 22 payment, use the weekly payment pattern. Enter September 22 as $0.

Child support income uses the last 60 days of income to anticipate income, but since we do not have an adequate reason to exclude the September 1 payment, include this payment as well. Average the payments from September 1 to October 27.

$156+$200+$100+$0+$150+$180+$200+$150+$200=$1360/9 payments=$148.44

Convert the averaged amount into the monthly amount. $148.44*4.3=$638.31.

Make sure to document how you calculated the income in FACS case notes.

Missing Paystubs: If there is a missing paystub, you may be able to use the missing payroll calculator to find the missing values. More information about the missing payroll calculator is available here.
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