Calculating Income Workbook

Transcription

1 Calculating Income Workbook Self-Paced Workbook Nutrition Education / Clinic Services Department of State Health Services This institution is an equal-opportunity provider Department of State Health Services. Nutrition Services Section. All rights reserved. Stock no. E Rev. 03/14 1

2 Welcome! This self-paced workbook is a supplement to the screening for Eligibility Self-paced Module. After completing this workbook, you will understand how to calculate income to determine eligibility. Before you begin, review Policy CS: 07.0 Income Screening as a Certification Requirement and CS: 12.0 Texas WIC Income Guidelines. Use the problems in this workbook to determine each applicant s income eligibility: Calculate household income Compare to WIC income guidelines If eligible, convert to monthly income for TWIN You can find the answers at the back of the workbook. 2

3 Same pay Frequency: Example: everybody gets paid weekly Do not convert to annual income 1. Add the incomes of all household members together. 2. The calculations should be exact without any rounding 3. Compare the total of all the income, including change, to the appropriate household size and pay frequency in the WIC income guidelines. Different pay frequency: Example: one person gets paid weekly, one person gets paid monthly 1. Convert all the income amounts to annual income using the following calculations a. When paid by the week multiply by 52 b. When paid every two weeks multiply by 26 c. When paid twice a month multiply by 24 d. When paid monthly multiply by Add the annual incomes together 3. The calculations should be exact without any rounding 4. Compare the annual total, including change, to the annual household size and annual WIC income guidelines When pay varies: Example: One weekly paycheck is $240.25, another paycheck is $ First calculate average income. Add checks together and divide by the number of checks OR use year-todate total and divide by the total number of pay dates. It is only one pay frequency in household, compare the average income to the appropriate frequency in the WIC Income Guidelines 3

4 2. When there is more than one pay frequency, use income average to convert to an annual amount. Convert all other household members to an annual amount. Compare the total annual amount to the annual WIC Income Guidelines. Leave without Pay / Reduced Pay: 1. Applicant s pay must be projected and annualized when they have one of the exceptions below. Income from other household members must also be annualized. Leave without pay (Example: Maternity leave, illness, strike) Leave with reduced pay College students going to school full-time but working full time during the summer Teacher who gets paid on a 10 month basis per year Dealing with Decimals When adding, subtracting and multiplying decimals, you will often have numbers that go beyond the Family Size Weekly Bi-Weekly Twice Monthly Monthly Annual hundredths place, such as.xxxxx. Drop the numbers after the hundredths place; you do not round up or down. Example #1: to the nearest hundredth is

5 Example #2: to the nearest hundredth is 5.41 Comparing to WIC Income Guidelines When you compare an applicant s income to the WIC Income Guidelines, you must include the change. For example: 1. Household of 4, annual income of $ Answer: Yes, 2. Household of 4, bi-weekly income of $ Answer: No, they do not qualify Enter Monthly Amount into TWIN 1. If the applicant is over income, you do not need to go any further. 2. If the applicant qualifies, you must covert the client s income to a monthly amount, drop the change and enter that amount in TWIN. a) If household is weekly, multiply by 52 to get annual, divide by 12 to get monthly, drop the change b) If household is bi-weekly, multiply by 26, divide by 12, drop the change c) If household is bi-monthly, multiply by 24, divide by 12, drop the change d) If household income was annual, divide by 12, drop the change To work the problems on the following pages you will need a calculator and a calendar. You may also need an extra sheet of paper for some of the calculations. When you calculate income, you calculate when the pay is received. For example: a client gets paid on the first of the month and they have a check that shows a YTD amount and pay date of March 1 st. That client has received 3 checks: Jan. 1 st, Feb. 1 st, and March 1 st. To be consistent, you count when the income was received. When working the problems, answer the following questions: 1) Meets Income Guidelines 5

6 2) Monthly Income to be entered in TWIN After each question, in bold, is where to find the calculation instruction in CS: Sally makes $212 a week and gets $102 a week from child support. She has one son in her household. III.C. 2. Joe makes $ a week and Sarah makes $ a month. They have 2 kids in their household. III.D. 3. Stacy is not working right now and living off her checking account. She has one daughter in her household and a balance of $28,316. She takes out $1300 a month to pay her expenses. II.G. 6

7 4. Joseph is not working right now and is living of his savings account. He has $35,000 in the account and uses $1400 to pay monthly expenses. Kelly gets $210 a week in child support and they have 2 kids in their household. II.G & III.D 5. Joann is supposed to get $300 child support each week. She does not always get the payment and sometimes she gets more money to make up for past payments. In the last 12 months you find out she has been paid $12,000. She has 2 children in the household. IV.B. (Because she is supposed to receive support each week there is a frequency, we should use that to calculate her income.) 6. Jessica is supposed to get $1000 a month in child support, but in the last 12 months she has only received 8 payments. Jason makes $515 twice a month. They have 1 child in the household. IV.B. & III.D. 7

8 7. Cindy makes $ a week at her job. She has one daughter in her household. III.C. 8. Stephanie makes $ a month at her job and her husband makes $ twice a month. They have 2 kids in their household. III.D. 9. Marissa is supposed to get $500 a month in child support. She says in the last 6 months she has only received 3 payments. She also makes $1350 a month from her job. She has 1 son in her household. III.C. & IV.B. 10. Christopher gets paid weekly but his pay varies. He is the only one working; he lives with his wife and child. He has his last 3 pay stubs. The gross amounts are $450, $650 and $525. IV. B. 8

9 11. Alice gets paid weekly and gets overtime. She is pregnant. She brings in her last check stub dated 6/1/XX. It has a gross amount of $ and an YTD of $ IV. B. 12. Jacob gets paid monthly but his pay varies. His check and pay date was 9/1/XX and his gross amount was $ and his gross YTD was $ He is the only one working and he has a wife and 2 kids in his household. IV. B. 13. Jesse gets paid every week but he works different hours every week. He has his check dated 8/31/XX and the gross pay is $ The YTD is $ His wife works and she gets paid $ a month. They have 3 kids in their household. III. D & IV. B. 9

10 14. Susan started working for her company on January 17 th. She gets paid bi-weekly and says her hours vary. Her last check was for the pay period ending 6/15/XX and the pay date was 6/20/XX. The gross YTD was $ She is a single mom with 4 kids in her household. IV. B. 15. Kelly gets paid bi-weekly and sometimes gets overtime. She has her last check stub dated 6/8/XX. It has a gross amount of $1200 and a gross YTD of $ Her husband gets paid twice per month and his hours vary. His check was dated 6/5/XX and his YTD is $ They have 3 kids in the household. IV. B. 16. Joe usually got $950 a week but his pay did vary. He is on FMLA because of an injury and he is not getting paid now. He started leave on 6/20/XX and will return on 7/25/XX. His last check was dated 6/21/XX and the gross YTD was $23, He has a wife and 3 kids but he is the only one working in the household. IV.D.1. 10

11 17. April is on FMLA and is not getting paid. She started leave on 6/18/XX and will go back to work on 8/31/XX. She has her last check which was dated 6/22/XX and has the gross YTD of $ She usually gets paid twice a month but her hours vary. She is a single mother supporting 3 kids. IV. D Veronica gets paid $825 bi-weekly and brought her most recent check with her. The check was received 6/22/XX and the Year-to-date was $ She tells you her last day of work was 6/14/XX and she will go back to work on 8/3/XX. While on disability she got $230 per week for 8 weeks. She also gives you a disability check dated 6/22/XX. She has a 2-year-old daughter in her household. IV. D Gary is the only one working and he is applying for his wife and newborn twins. He is on leave without pay that started May 1 st. He usually gets paid monthly and the gross YTD on his check that is dated May 1st is $ He will be on leave for 2 ¾ month. IV. D

12 20. Betty gets paid $ a month and her last check was dated 5/18/XX. She is on maternity leave for 11 weeks. It is just her and her newborn in her household. IV. D Jill gets paid $ weekly and her husband makes $ a month. Jill is on maternity leave for three months because she just had twins. She started leave on 6/1/XX and will go back to work on 9/1/XX. III.D. & IV. D Terry gets social security payments each month for $645. Just her and her 3 grandchildren live in the household. She also received a disability check 8 months ago for $30,000. III. D. 12

13 23. Thomas gets $385 a week at his job and his wife makes $1845 a month at her job. Once a year, Thomas gets a bonus of $5,000. They have 3 kids in the household. III. D. 24. Bill gets paid $2125 a month at his job and his wife gets $1215 a month at her job. A few months ago they got an inheritance of $10,000. They have 3 kids in the household. III. D. 13

14 Answers 1. $212 + $102 = $314 per week, compare to weekly WIC income guidelines for household of 2. For TWIN, 314 x 52 = annual /12 = Enter 1360 in TWIN 2. ($ x 52 Joe s) + ($ x 12 Sarah s) = $ annual, compare to annual WIC income guidelines for household of 4. For TWIN, /12 = Enter 2829 in TWIN 3. $1300 per month, compare to monthly WIC income guidelines for household of 2. For TWIN, 1300 Enter 1300 in TWIN 14

15 4. ($1400 x 12 Savings) + ($210 x 52 Child support) = $27720 annual, compare to annual WIC income guidelines for household of 4. For TWIN, 27720/12 = 2310 Enter 2310 in TWIN 5. $12000/52 supposed to be paid weekly = $ avg. weekly child support, compare to weekly WIC income guidelines for household of 3. For TWIN, x 52 = /12 = Enter 999 in TWIN 6. ($1000 x 8 payments) + ($515 x 24 Jason s) = $20360 annual, compare to annual WIC income guidelines for household of 3. For TWIN, 20360/12 = Enter 1696 in TWIN 7. $ weekly, compare to weekly WIC income guidelines for household of 2. They do not qualify Do not have to do calculations for TWIN 8. ($ x 12 Stephanie s) + ($ x 24 Husband s) = $ annual, compare to annual WIC income guidelines for household of /12= in TWIN 9. ($500 x 3 payments) = $1500 $1500/6 received in the last 6 months = $250 month $250 avg. child support + $ 1350 job = $1600 month, compare to monthly WIC income guidelines for household of 2. Enter 1600 in TWIN 10. Add $450 + $650 + $525 = $1625 $1625/3 paychecks = $ avg. weekly check, compare to weekly WIC income guidelines for household of 3. For TWIN, x 52 = /12= Enter 2347 in TWIN 11. $ /22 pay periods = $ avg. weekly check, compare to weekly WIC income guidelines for household of 2. For TWIN, x 52 = /12 = Enter 1463 in TWIN 15

16 12. $ /9 pay periods = $ avg. monthly check, compare to monthly WIC income guidelines for household of 4. For TWIN, Enter 3500 in TWIN 13. $ /35 pay periods = Jesse s avg. weekly check ($ x 12 Wife s) + ($ avg. check x 52) = $ $ = $ annual, compare to annual WIC income guidelines for household of 5. For TWIN, /12 = Enter 4073 in TWIN 14. $ /11 pay periods = Susan s avg. bi-weekly check, compare to bi-weekly WIC income guidelines for household of 5. For TWIN, x 26 = /12 = Enter 3555 in TWIN (This should work out the same if you use pay period. Policy CS: 07.0 says you can use either pay date or pay period) 15. $ /12 pay periods = $ Kelly s avg. bi-weekly check $ /11 pay periods = $ Husband s avg.bi-monthly check ($ x 26 Kelly s) + ($ x 24 Husband s) = $ $ = $ annual, compare to annual WIC income guidelines for household of 5. They do not qualify Do not have to do calculations for TWIN 16. $ ( week x 22 future pay periods) = , compare to annual WIC income guidelines for household of /12 = Enter 3720 in TWIN. 17. $ /12 pay periods = $ avg. bi-monthly check $ x 8 = $ projected income $ YTD + $ = $ , compare to annual WIC income guidelines for household of /12 = Enter 3067 in TWIN. 18. $230 x 8 weeks disability = $1840 $825 x 10 future bi-weekly pay periods = $

17 $10725 (YTD amount) + $ $8250 = $20815, compare to annual WIC income guidelines for household of /12 = Enter 1734 in TWIN 19. $ /5 checks already paid = $ avg. monthly pay $ x 4 ¼ month working in the future (Enter 4.25 in calculator) = $ $ YTD + $ = $ , compare to annual WIC income guidelines for household of /12 = Enter 1779 in TWIN. 20. Convert monthly pay to weekly pay $ x 12 = then /52 = weekly pay These two amounts of pay are the same, but make your calculations better 52 weeks in year. On leave for 11 weeks, = weeks x $ = $ , compare to annual WIC income guidelines for household of /12 = Enter 1666 in TWIN 21. Convert weekly pay to monthly pay $ x 52 = $ then $ /12 = $ monthly pay These two amounts of pay are the same, but make your calculations better 12 months in a year. On leave for 3 months, 12-3 = 9. 9 x $ = $ Husband $ x 12 = $ $ husband s + $ Jill s = $ , compare to annual WIC income guidelines for household of /12 = Enter 3525 in TWIN $645 x 12 = $7740 then add $ $30,000 = $37740, compare to annual WIC income guidelines for household of /12 = 3145 Enter 3145 in TWIN. 23. ($385 x 52) + ($1845 x 12) = $42160 then add $5000 bonus + $42160 = $47160, compare to annual WIC income guidelines for household of /12 = 3930 Enter 3930 in TWIN 24. ($2125 x 12) + ($1215 x 12) = $40080 then add $10,000 inheritance + $40080 = $50,080 compare to annual WIC income guidelines for household of 5. 17

18 /12 = Enter 4173 in TWIN 18