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Effective: December 1, 2006 |
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20.25.20ar1 - Seasonal Income (Archive) |
Archived: March 1, 2009 |
Seasonal income is income that is regularly received for only part of the year. How to count seasonal income varies by program.
Seasonal income is earned income and is counted.
Annualize seasonal income. Consider the following when determining the annual amount:
l Base the annual seasonal income on the number of months the person expects to work during the year.
l If the person typically receives Unemployment Insurance (UI) during the time they are laid off, include the anticipated amount in the annual calculation.
Example:
John works for a roofing company and is typically laid off four months each year. His previous year's tax forms reflect eight months of earnings and 16 weeks of Unemployment Insurance.
Action:
Use the figures shown on the tax forms to project his earned income for the next 12-month period.
l Base the calculation on the previous year's tax forms if they accurately reflect the current situation.
Note: If tax forms are not available, or do not reflect the current situation, require other verification of current and anticipated earnings.
l If the earnings vary from month to month, use an average to arrive at a monthly amount.
Example:
Bob is an applicant who just started work for a landscaping company in April. He applies for MCRE in June. He earned $400 in April, $600 in May, and expects to earn $1,000 in June. He provides an employer statement that indicates he is expected to continue at the $1,000 per month level in July and August. Earnings are anticipated to drop to $600 in September and October and the employer expects Bob to be laid off from November through March.
Action:
Average Bob's monthly earnings.
Note: If Bob later reports a change in income or reports being laid off, compare the actual income received to the anticipated income to determine if there is a decrease.
1. Add together actual and anticipated earnings for May (the 30 days preceding the June application) through the following April to find the total earnings.
Note: Use the amount Bob earned in the previous April to estimate what he will earn next April.
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May |
$600 |
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June - August |
3 x $1000 = $3000 |
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September - October |
2 x $600 = $1200 |
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November - March |
$0 |
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April |
$400 |
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Total |
$5,200 |
2. Divide the total earnings by 12 to arrive at a monthly average.
$5,200 divided by 12 = $433.33.
l If seasonal income is new or changes from year to year, base the annual income figure on the applicant/enrollee's best estimate of expected income.
Clients who are seasonally employed may be self-employed or they may work for others.
l Self-employed.
Treat income from seasonal self-employment in the same way as year round self-employment.
Exception: For MA-EPD count seasonal self-employment only in the months in which the person is engaged in work activity.
l Employed by Others.
When clients are seasonally employed by others, estimate income anticipated to be received during the certification period including earnings and any UI anticipated to be received.
Note: Document specific income verifications used, and explain the calculations that were done to anticipate countable gross income.
Example:
Tom applies for GAMC in January. He was laid off from his job as a roofer in November and is receiving Unemployment Insurance. Based on previous years' experience, he expects to resume work in April. He is requesting GAMC to begin in January.
Action:
n January - April: Use Unemployment Insurance payments received or expected to be received in January through the date Tom expects to return to work in April.
n April - June. Use earnings from the same period for the previous year as a guide.