G Projecting Income

 

Revised 12/26/2023

Overview

This section discusses how to project income when current proof does not reflect ongoing income due to any of the following:

• Pay rate has increased or decreased;

• Work hours have increased or decreased;

• A person does not get paid every pay period (zero pay); or

• Income has just started or stopped.

 

Policy

When all income for the budget month is known, it must be used for that month. When all income for the month is not known, the income received in the last 30 days is used when it is normal and expected to continue.

For future months, if the income received in the last 30 days is not the usual amount or there has been a recent change, the customer’s income must be projected. Projecting income is predicting the future income based on the past or known information. Income received from at least the last 30 days and any known changes are reviewed to determine the income to be budgeted for future months.

 

1) Pay rate has increased or decreased

When the person’s new rate of pay is not included in all pay received in the past 30 days, project the income for the future months. When the person’s work hours do not normally vary, multiply the numbers of hours worked by the new rate to get the projected pay amount. If the person’s work hours normally vary, complete the following to project the income:

• Add up the number of hours from all the normal pay periods in the last 30 days;

• Divide the total hours by the number of pay periods used to get an average number of hours; and

• Multiply the average hours by the new pay rate to get the projected income amount per pay period.

See Changes in Pay Rate for examples.

 

2) Work hours have increased or decreased

When a person’s new work hours are not reflected in all pay received in the past 30 days, project the income for the future months. 

When the person’s work hours normally vary, determine the range of hours the person may be expected to work. For example, the person’s employer may state that the person will work between 20 and 30 hours per week.

If the person is paid…	And…	Then…
Weekly or bi-weekly	Work hours are not expected to vary	Multiply the expected hours per pay period by the pay rate to get a projected pay amount.
	Work hours are expected to vary	Determine the range of hours the person is expected to work per pay period; Add the highest and lowest number of hours expected to work and divide by two to get an average; and Multiple the average hours by the pay rate to get a projected pay amount.
Semi-monthly	Work hours are not expected to vary	Determine the number of hours the person is expected to work per week; Multiply the expected hours per week by 2.15 to get the average hours per pay period; and Multiply the average hours per pay period by the pay rate to get a projected pay amount.
	Work hours are expected to vary	Determine the range of hours the person is expected to work per week; Add the highest and lowest number of hours expected to work during a week and divide by two to get the average hours per week; Multiply the average hours worked per week by 2.15 to get the average hours per pay period; and Multiply the average hours per pay period by the pay rate to get a projected pay amount.

 

See Changes in Work Hours for examples

 

3) Zero Pay Period

A zero-pay period is when a person is still employed but does did not earn any income for the scheduled pay period. This can happen when:

• The person is out sick or on vacation but does not get paid for the time off work.

• The person works only as needed. For example, the person is employed with a temporary service.

When the person normally receives income every pay period, and the zero-pay was an unusual event, only include it in the month it occurred. When the person works as needed and a zero-pay is not an unusual event, also include the zero-pay when projecting income for future months.

The table below shows how monthly income that includes a zero-pay period is calculated for MAGI and non-MAGI programs.

If the MA program type is…	Then
Non-MAGI	All of the pay amounts received during the income period are added together to get the monthly income.
MAGI	Add up all of the pay amounts received during the income period. Divide the total by the number of pay periods there were in the income period to get an average amount per pay period; and Multiply the average amount by one of the following depending on how often the person is paid: 4.3 for weekly; 2.15 for bi-weekly; or 2 for semi-monthly.

 

See Zero Pay Periods for examples.

 

4) Income has just started or stopped

How income that has just started or stopped is calculated depends on whether or not a full month’s income will be received in the budget month. See the table below for details:

If…	Then
A full month’s income will be received.	The standard policy applies based on frequency of payment. See MA604D.
Less than a full month’s income will be received	All of the pay amounts that will be received during the budget month are added together to get the monthly amount.

 

5) Unusual low-high income payments

Unusual low-high income payments are when there is an unusual variation in the income that is not projected to continue or recur.

This can happen when the person has work hours outside the normal range that is expected by their employer, receives a bonus, or some type of incentive pay.

Projecting unusual low-high income for Future Months: 

If...	Then...
The unusual pay is not expected to continue	Remove the check with the unusual High-low income. Multiple the average remaining checks by the pay frequency to get a projected pay amount.
If the unusual pay is due to a one-time bonus or incentive pay and it is not expected to continue	Subtract the bonus or incentive pay from the check. Multiple the average the checks by the pay frequency to get a projected pay amount.
The unusual pay is not an unusual event and is expected to continue	Include when projecting income for future months.

See Unusual Low-high Income Payments for examples.
 

Definitions

Term	Definition
Income period	When all pay amounts for the budget month are known, the income period is the same as the budget month. When all pay amounts for the budget month are not known, the income period is the last 30 days. NOTE     When all pay amounts for the budget month are not known AND all pay amounts in the last 30 days are unusual, the income period can be extended further back to include usual pay amounts.

See Unusual Low-high Income Payments for examples.
 

Proof

Proof of an income change or unusual pay amounts can include one or more of the following:

• Data from state and federal hubs;

• Written or verbal statement from the employer;

• Written job offer that includes details about pay rate and frequency or amount;

• Written termination letter that includes details about the date and amount of the final pay;

• Telephone call to the employer or income source confirming the income change details.

 

Legal Authority

Program	Legal Authority
ALTCS SSI-MAO MSP FTW	42 USC 1382a(a) and (b) 20 CFR 416.1102, 1110, 1111, 1112, 1120, and 1124
Caretaker Relative Pregnant Woman Child Adult KidsCare	42 CFR 435.603 R9-22-1422, 1423 and 1424