Section 2.540 - Verification and Determination of Income(1)Verification and Determination of Monthly Wages. Earned income from wages shall be verified at application, whenever there is a change in amount, and at any time a member of the filing unit reports he or she has commenced employment. Earned income shall be verified by pay stubs, pay envelopes, a written statement signed by an employer and/or client, or a verbal statement by the employer and/or client. The verification must show the gross wages (including tips, if applicable) and the number of hours worked. (a) If the employee is paid weekly, the average of the four consecutive weeks' pay received prior to the application date shall be multiplied by 4.333 to obtain an average monthly wage. If the filing unit member has worked less than four weeks, any wage information that is available will be used initially, and the figure shall be revised if necessary when four consecutive weeks of wage information is available.(b) If the employee is paid bi-weekly, an average of the last two consecutive pay periods shall be multiplied by 2.167 to obtain a monthly figure. If the employee is paid twice a month, the last two consecutive pay periods shall be added to obtain a monthly figure.(c) If the employee is paid monthly, the monthly figure shall be used.(d) If the employee receives a contractual annual salary, the amount to be used is the contractual annual salary divided by 12. Verification of the annual salary should be obtained in the form of a signed copy of the contract or a signed letter stating the annual salary to be received.(e) Pay stubs, pay envelopes, or a written statement signed by an employer showing wages paid and the number of hours worked in the year to date may be used to determine an anticipated monthly wage if the number of weeks' pay represented is shown or can be computed. The average weekly earnings derived are multiplied by 4.333 to obtain a monthly figure.(2)Verification and Determination of Self-employment Income. Self-employment income is verified on a monthly basis by means of business records that show the total amount of income and the total business expenses associated with the gross income earned. Business expenses may be verified by records of bank deposits, records of wages paid to employees, and Social Security and other taxes paid on, and withheld from those wages, rent receipts, utility payments receipts, bills of lading, receipts for purchase of stock, and Workers' Compensation payment records.(3)Unearned Income. Unearned income shall be verified at application and whenever there is a change in income. Income that is received on other than a monthly basis shall be converted to a monthly amount in the same manner as earned income. Unearned income shall be verified by a copy of the benefit payment check, a copy of a benefit or award letter, retirement fund documents, Social Security benefit statements, a written statement indicating the amount and frequency of the payment from the provider or person making the payment, or information received by ORI or the Case Management Provider from agencies such as the Social Security Administration, Department of Transitional Assistance or Executive Office of Labor and Workforce Development indicating the current amount and frequency of the payment.
Amended by Mass Register Issue 1328, eff. 12/16/2016.