Payments received in exchange for services count as earned income. The CAO will determine the gross earned income amount before giving any deductions for taxes, dependent care, etc.
Some persons may have deductions from gross income designated as flex benefits or deductions specified as medical insurance, child care, child support, and the like. If the amount to cover the benefits is deducted from gross wages, the CAO must include this amount when determining gross income. If the amount to cover benefits is added to gross wages, this amount is disregarded, as it is an in-kind benefit.
NOTE: The CAO must scan or copy and save pay stubs and employer statements used to determine eligibility and the grant amount at application, renewal, SAR review, and when new earned income information is reported. Retain the verification in the case record for six years. Verification of actual hours worked is required to complete the federal TANF Reports.
The CAO must count income from the following sources as earned income:
Wages (including tips)
Salaries
Commissions and bonuses
Rental property income, if the person manages the property
Profit from self-employment (see Chapter 152,Self-employment )
NOTE: Self-employment includes, but is not limited to, rental of rooms or apartments contained in the resident property, board, day care, operation of a business or farm, or practicing a profession.
55 Pa. Code 183.21 & 55 Pa. Code 183.22
Sick benefits provided by an employer, either through the regular payroll deduction process or through a contract with an insurance carrier
Lump sum nonrecurring payments of earned income, such as delayed wages in the month when the lump sum payments are received (see Chapter 157, Lump Sum)
The CAO will determine profit from self-employment by identifying the gross earnings and subtracting any allowable business expenses. Consider profit from self-employment as earned income. See Chapter 152,Self-employment.
The CAO will count a one-time earned lump sum payment, such as delayed wages and severance pay, according to Chapter 157, Lump Sum.
Certain deductions are allowed when determining how much income to count. See Section 157.3, Allowable Lump Sum Expense Deductions.
Revised September 14, 2020, replacing September 19, 2012.