168.4 Authorization of Benefits

When benefits are initially authorized, the County Assistance Office (CAO) will:       
C CC                   

1.  Complete a prospective determination of need for the application month and the following month.

2.  If eligible, compute the monthly assistance payment amount using the countable income and deductions from the appropriate calendar month. 

The CAO will use prospective budgeting (PB) to compute the monthly payment amount for the first two months of eligibility for most budget groups.

55 Pa. Code § 183.101

168.41 Prospective Determination of Need at Application

The CAO will apply the net test for the application month and the next month using prospective budgeting.  

  55 Pa. Code § 183.101(d)

The CAO will:

1. Determine the budget group composition for the application month and the following month.

2. Determine the category of assistance.

3. Apply the net test.                

55 Pa. Code § 183.101

4. For a new applicant or a budget group that has not received Temporary Assistance for Needy Families (TANF) cash benefits in the prior four months,  apply the earned income disregard eligibility test. See Chapter 160, Deductions.       

  55 Pa. Code § 183.94(2)

• If the budget group’s income, without the incentive, is equal to or greater than the applicable Standard of Need in Chapter 168, Appendix A, the budget group does not pass the net test and is ineligible for that month.

• If the budget group’s income, without the incentive, is less than the applicable Standard of Need, apply the incentive to compute the net income for the net test.

5. Compare total net income to the budget group’s family size allowance (FSA) plus special items allowance.

6. If total net income equals or exceeds the FSA, the budget group is ineligible:   

55 Pa. Code § 183.101(c)

• If the budget group is ineligible in the application month but eligible the next month, the CAO will:

• • Deny benefits for the application month.
  • Complete the net test for a third month.
  • Compute the monthly assistance payment amount for the calendar month following the application month and for the third month, if eligible
  • Authorize cash payments beginning the first calendar day of the month following the application month.

• If the budget group is ineligible for the application month and the next month, the CAO will:

• • Deny benefits.
  • Provide a Notice to Applicant explaining ineligibility
  • Explore eligibility for Medical Assistance (MA) and Supplemental Nutrition Assistance Program (SNAP).

• If the budget group is eligible for the application month but ineligible in the next month, the CAO will:

• • Compute the monthly assistance payment amount for the application month only.
  • Authorize a cash payment beginning the date eligibility is determined and ending the day before the first payment day in the next calendar month
  • Determine eligibility for MA and SNAP.

7. If the net income is less than the FSA for both months, determine the monthly assistance payment amount.

8. Provide a Notice to Applicant (PA/FS162) stating eligibility and the monthly assistance payment amount. Include applicable explanation of ineligibility for any initial months.

Example 1:  A family applies on May 25. The CAO completes the prospective determination of need for May and June. The family is not eligible in May, but the CAO anticipates they will be for June. The CAO completes the net tests for July and anticipates the family will be eligible. The CAO will determine the monthly assistance payment for June and July. Cash benefits are authorized effective June 1.

Example 2:  The same situation as above, but the family is not eligible for July. The CAO will compute the payment amount for June only.

Example 3: A family applies in December. The CAO completes the prospective determination of need for December and January. The family passes the net test for December only. The CAO will compute the payment amount for December. If eligible for a payment, the CAO will authorize a noncontinuous eligibility (NCE) one-time issuance for December. The NCE end date is the day before the first payment day in January.

168.42 Computing the Payment Amount When Prospectively Budgeting the Initial Months

If the budget group is eligible following the net test, the CAO will compute the monthly payment amount for the first two months of eligibility as follows:   

   55 Pa. Code § 183.101(d)(1)

1.  Use the same net income amount computed when completing the net test. 

NOTE:  This includes applying the earned income disregard (EID) deduction and Work Expense Deduction (WED) to the earnings of each member who qualifies for the disregard. See Section 160.2 Earned Income Deductions.

REMINDER:  The net income will include any support payments (less the $50 disregard) received by the budget group up to the authorization date. Assignment of payments to DHS begins immediately upon the authorization of cash assistance.

2.  Combine the FSA for the budget group size with any recurring special items allowances to arrive at the budget group’s total monthly needs.

3.  Subtract the budget group’s net income (step #1) from its total needs (step #2) to determine the monthly assistance payment.

4.  Round the monthly payment amount down to the next whole dollar.     

  55 Pa. Code § 183.107

5.  Prorate the initial payment. See Section 168.43. 

If the net income in the second month accurately reflects anticipated earnings, use the second month to establish the eligibility and payment amount for the remainder of the SAR/eligibility period.

If the second month does not accurately reflect future earnings, the CAO will determine eligibility and payment amount for a later month(s) that accurately reflects anticipated income.

NOTE:  If the CAO verifies that income budgeted prospectively for the initial months was under-estimated or over-estimated: 

• Do not authorize a corrective payment for the over-estimate unless the CAO failed to timely adjust verified income. See Chapter 181, Delayed and Corrective Payments.

• Do not process an overpayment referral for the under-estimate unless the CAO failed to adjust verified income or the recipient failed to report or provide information timely.

168.421 The 'Five-Pay Month'

A budget group that receives regular, recurring income may receive “five pays” in a calendar month. 

A “five-pay month” can be either: 

• The budget group receives income on a regular, recurring weekly basis and would normally receive four checks during the calendar month but receives five

• The budget group receives income on a regular, recurring biweekly basis and would normally receive two checks during the calendar month but receives three.

NOTE: The income can be earned or unearned. This principle also applies to deductible expenses such as dependent-care payments. 

The CAO will data enter the appropriate income information as received. The eCIS system will determine the average of these 3 and 5 pay calendar months.

A budget group may receive an extra pay, such as a vacation or overtime check, which is not regular or recurring. Do not count extra pays that are not expected to continue unless they are received in one of the initial months at application. 

Example 2:  In December, Mrs. Marshall applies for cash assistance for self and family. Mrs. Marshall is employed and normally earns $120 gross per week. For December, Mrs. Marshall anticipates four pays in the regular amount plus an extra $30 check to cover overtime worked last week. Mrs. Marshall expects four pays of $120 each again in January. The CAO prospectively determines eligibility and the amount of the payment for December based on a total gross income of $510 and for January based on a total gross of $480.

Example 3:  At the June SAR review, Ms. Jones provides verification of earnings for April. On April 14, Ms. Jones’s pay stub shows overtime earnings of $30. The CAO confirms that the overtime earnings are not expected to continue. The $30 in overtime will not be used to determine the eligibility and payment amount for the new SAR period.

168.43 Proration of the Initial Monthly Assistance Payment

If the CAO determines that the budget group is eligible beginning on one of the regular scheduled payment days, the system will not prorate the initial assistance payment. 

If the budget group is found eligible beginning on a date other than a scheduled payment day, the system will automatically prorate the initial payment.

If the total payment for the first month prorates to less than $10, the CAO will authorize benefits, but the budget group will not receive a payment. The budget group is eligible in all other respects.  

NOTE: If a payment is not made because of the minimum grant requirement, the time does not count toward the TANF time limit.

Updated May 21, 2025, replacing February 7, 2013