N.J. Admin. Code § 10:90-3.11

Current through Register Vol. 56, No. 11, June 3, 2024

Section 10:90-3.11 - Determining the income of WFNJ TANF/GA assistance units

(a) All earned and unearned income shall be determined by using a prospective budgeting methodology. WFNJ eligibility and cash assistance benefit calculations shall be based on an estimate of the assistance unit's income, using income averaging and, other circumstances that will exist until the assistance unit reports a change in circumstance or at the time of case redetermination, whichever occurs first. The estimate of income is based on the assistance unit's and the agency's reasonable expectations and knowledge of current, past and future circumstances.

(b) For purposes of determining the assistance unit's financial eligibility and benefits, the county or municipal agency shall determine earnings by obtaining wage information for the four consecutive week period immediately preceding the date of application, redetermination or change in circumstance. Likewise, all unearned income received within this four week period is also determined. All earned and unearned income received within this four week period must be verified and documented in the case record, even if all four weeks of income are not ultimately used to calculate the estimate.

(c) In order to maintain consistency in policy application between the WFNJ and NJ SNAP programs, the county or municipal agency shall utilize the same income estimate for both the WFNJ application/redetermination period and the NJ SNAP application/recertification period, whenever possible. Therefore, in those WFNJ/NJ SNAP cases where the NJ SNAP calculation encompasses a five-paycheck (or a three paycheck month for bi-weekly income) month, county or municipal agencies are authorized to use that same method for WFNJ eligibility and cash assistance benefit. Documentation of the income estimate determination must be maintained in the case record.

1. Since the receipt of income by a WFNJ individual usually occurs weekly, bi-weekly, or on a semi-monthly basis, the county or municipal agency shall convert the averaged income amount to a gross monthly amount by multiplying the averaged income amount by the appropriate conversion factors as follows:

i. Weekly amounts by 4.333;

ii. Bi-weekly amounts by 2.167; and

iii. Semi-monthly amounts by two.

(d) In determining an estimate of income, the following procedures shall be used by the county or municipal agency:

1. Verify and document in the case record, all unearned income (through bank letters, statements, etc.) and earned income (through wage stubs or documentation from the employer) received within the four week period specified in (b) above;

i. For purposes of budgeting income from new employment, earned income shall be budgeted prospectively no later than 10 days from the date the recipient reports the receipt of his or her first paycheck. The 100 percent disregard shall then be applied for the first full month for which the income will be budgeted.

ii. When budgeting new income, the agency is required to send timely or adequate notices to clients for the month in which the 100 percent disregard is applied. If the agency is unable to provide the recipient with timely notice and adequate notice of budgeting or has insufficient time to budget the income for the first month following the month the recipient reports the receipt of the paycheck, then the income and the 100 percent disregard shall be applied for the first of the next following month.

2. Determine, through review of the documentation, the case record and discussion with the client, if any of the income received is not expected to be representative of the future. For instance, the first pay check of new employment may not represent a full pay period; a missing week's income may represent a summer plant closing; or a larger check may represent nonrecurring overtime, all of which may not be anticipated to occur in the future. Non-representative income shall not be used in calculating the estimate. For example, the assistance unit receives regular weekly income but is missing one week's pay due to a plant closing for that week only. The three available amounts would be averaged to determine average weekly income and that average converted to monthly gross income as described in (c)1 above;

3. If income fluctuates to the extent that a four-week period is not expected to provide an appropriate income estimate until the next redetermination, the agency shall require the assistance unit to submit verified wage information for those months subsequent to the month of review, in order that the agency may recalculate the estimate. When income fluctuates dramatically, agencies shall rebudget the case as often as deemed necessary to ensure the most accurate income estimate and correct assistance payment;

i. When four consecutive weeks of income fluctuate but are representative of the assistance unit's anticipated fluctuation in income for future months, the agency shall average the income from the four-week period and project that gross income estimate for future months;

4. The final step shall be to average the income that has been determined to be representative of the eligible assistance unit's circumstances and to convert that average to a gross monthly income estimate amount by using the conversion factors set forth in (c)1 above. The estimate amount shall then be used to determine initial eligibility and benefit amount until the next redetermination or report of a change in circumstances.

(e) WFNJ assistance units shall be required to report any change in unearned income and circumstances that could affect eligibility and the benefit amount as soon as possible to the county or municipal agency, but in no event later than 10 calendar days of the date the change happened or in the case of new earnings no later than 10 days from the date of receipt of the first paycheck. For cases with earned income see (e)3 below regarding reporting requirements. The agency shall initiate appropriate action on the reported change within 10 calendar days of receiving the report of the change, subject to timely and/or adequate notice.

1. Reportable income and circumstance changes are defined as changes in sources or amounts of earned or unearned income or changes to the eligible assistance unit size which are expected to continue into the future. Examples of such changes include, but are not limited to: starting a new job or gaining a new source of unearned income; losing a source of unearned income; permanent or long term changes in unearned income; or addition of or loss of an eligible unit member.

2. A change in circumstances of the eligible assistance unit may result in an adjustment upward or downward in the amount of the cash assistance payment. Downward adjustments shall be subject to timely and adequate notice.

3. Cases with earned income are assigned a six-month reporting cycle that coincides with the time of the next case redetermination. Cases with earned income are not required to report changes in monthly earned income unless total monthly household income exceeds 130 percent of the Federal Poverty Level (FPL). This is the only required change that a recipient on six-month reporting must report prior to the next case redetermination.

i. Only assistance units that have countable earned income are eligible for six-month reporting. This includes assistance units that have earned income from a disqualified member and those in which the only earned income is from self-employment, even if, after the cost of producing that income is deducted, the actual earned income is zero.

ii. If a six-month assistance unit reports any changes, the county/municipal agency shall act on those changes in accordance with (e)1 and 2 above. Other than the requirement to report earned income over 130 percent of the FPL, the only change reporting to be encouraged is one that will result in the assistance unit obtaining higher benefits during the six-month period, such as losing a job or source of unearned income; permanent or long term changes in hours worked and/or rate of pay or permanent or long term changes in unearned income that result in decreased earned income to the household; changing from full-time to part-time employment; short term plant closings (such as one or more weeks) or periods of sick leave without compensation (more than one day); or addition of an eligible unit member. The agency shall, verbally and in writing, inform all recipients subject to six-month reporting that they are not required to report increases in earned income if the total earnings are less than 130 percent of the Federal Poverty Guidelines, and that any reporting of an earnings increase will result in a decrease in benefits. In addition, the agency shall, verbally and in writing, inform all recipients subject to six-month reporting that they are encouraged to report a decrease in earnings, as a decrease in earnings could result in an increase in benefits.

iii. County/municipal agencies shall act on all changes that are received from sources other than the assistance unit when such information is considered verified upon receipt. Verified upon receipt means that the information received is not questionable. Such information includes, but is not limited to, the Beneficiary Data Exchange (BENDEX) and the State Data Exchange (SDX) computer matches, letters from employers verifying wages and reports from other county/municipal agencies that an assistance unit member has left the unit and is applying in another jurisdiction.

iv. When an assistance unit is on six-month reporting and exceeds the income eligibility standard for a WFNJ TANF/GA grant, the unit is not required to report changes in earnings until their total income equals or exceed 130 percent of the FPL or until the next redetermination, whichever occurs first. Since such households are not required to report changes that do not exceed 130 percent of the FPL, no overpayment has occurred and no claim shall be established.

v. If an individual subject to six-month reporting leaves an assistance unit and moves into another assistance unit, or becomes a separate assistance unit or reports the addition of a new member already participating in six-month reporting on another case, the CWA shall take appropriate action to remove the person from the losing case, add the person to the gaining case, and ensure there is no duplicate participation.

(1) If the individual leaving the assistance unit is the only individual with earned income, the county/municipal agency shall convert the case back to the normal reporting requirements at the time of the next case redetermination.

(2) When the individual with earnings joins another assistance unit without income, the county/municipal agency shall convert the case to six-month reporting requirements at the time of the next case redetermination.

vi. County/municipal agencies are not precluded from conducting investigations of suspected fraud cases.

(f) Under certain circumstances, including, but not limited to, the following, a supplemental payment to the last regular benefit payment may be issued during the current payment period.

1. An assistance payment was incorrectly computed or not issued due to administrative error. Such supplemental payment(s) shall be considered as corrections to underpayments;

2. A change in circumstances occurred; or

3. A new member was added to the eligible unit.

(g) Any supplemental payment to an eligible assistance unit shall be calculated using the proration chart at 10:90-3.7 based on the date of the change if all other eligibility factors are met.

N.J. Admin. Code § 10:90-3.11

Amended by R.1998 d.42, effective 1/20/1998.
See: 29 N.J.R. 3971(b), 30 N.J.R. 389(a).
In (c), substituted a reference to WFNJ/FS cases for a reference to PA/FS cases; and added (d)1i and ii.
Amended by R.2003 d.226, effective 6/16/2003.
See: 34 N.J.R. 2713(a), 35 N.J.R. 2670(a).
Rewrote (d) and (e).
Administrative change.
See: 44 N.J.R. 1529(a).