L Zero Pay Periods Example

 

Program

Manual Section

All programs

MA604G

 

Examples

The customer reports that she gets paid weekly, works on call, and that zero pays are not unusual. She provided 4 weekly paychecks, 1 of which is a zero pay. The gross pay for each of the checks were (check 1 = $300.00, check 2 = $290.00, check 3 = $0.00, and check 4 = $310.00). To determine the monthly amount to budget for a MAGI program:

  1. Add all of the pay amounts for the income period ($300 + $290 + $310) = $900

  2. Divide by the amount of total number of pay periods including the zero pay period ($900 divided by 4) = $225

  3. Multiply by 4.3 because she is paid weekly ($225 x 4.3) = $967.50 (average monthly amount including the zero pay)