LAW
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Ohio Laws and Rules
The method for computation of gross monthly earned income is dependent upon whether the employed individual works a “set” work week (i.e., scheduled and paid the same number of hours per pay period) or the individual has fluctuating hours of and income from employment.
(A) If the employed individual works a set number of hours per pay period, that set number of hours shall be used in computing the individual’s gross monthly earned income. The gross monthly income shall be computed by either using the gross earnings listed on the individual’s pay stub or by multiplying the set number of hours per pay period by the hourly rate of pay as the figure to be used in converting the income into a standard month as set forth in rule 5101:1-39-20.2 of the Administrative Code.
(B) If the employed individual has fluctuating hours, the pay shall be averaged to arrive at a figure to be used in converting the income into a standard month. In these fluctuating income situations, the CDJFS shall use actual pay stubs for at least four weeks, when possible, in arriving at a figure to use in converting the income into a standard month.
(C) Averaging the previous four weeks of earned income is suggested as a guide in determining a representative figure in situations involving fluctuating income. Sometimes, the earned income from the prior four week period is not representative of current or future income. In situations when the prior four week period is not representative of future income, the CDJFS shall project countable income for a pay period based on a best estimate. The best estimate shall be determined based on a number of variables which may affect the determination. The variables that may need to be considered are set forth in paragraphs (C)(1) to (C)(3) of this rule.
(1) There are more than four weeks of pay stubs available and the assistance group member advises the CDJFS representative that an average of a longer period of time would be more representative of the individual’s average earnings because the most recent four weeks of earnings were less or greater than average. In the event that more than four weeks of pay stubs are available at the time that the CDJFS is making the determination, the CDJFS shall use all income related information within three months of the estimate that is available in order to arrive at a representative figure to be subsequently converted into a standard month. This includes situations when the assistance group member disagrees with the use of earnings from the past four week period as indicative of future earnings. Also, when there are more than four weeks of pay stubs available, but the assistance group member advises the CDJFS that the earned income that is expected in the future is going to be less than that in the most recent (four weeks) past, the CDJFS shall use all income related information that is available (including the individual’s projections of future earnings) to determine a representative figure. Additionally, some pay stubs reflect year-to-date earnings. This is an acceptable method of determining average income for longer than the four week period prior to the eligibility determination.
(2) Conversely, if there are fewer than four weeks of pay stubs available at the time of the eligibility determination, the CDJFS shall use all income information that is available in order to arrive at a representative figure. This includes situations when the employed assistance group member disagrees with the use of earnings from the past four week period as indicative of future earnings.
(3) If there are no pay stubs available because the employment is new, the CDJFS shall project an estimated amount for a pay period based on the CDJFS’ best estimate of the individual’s income and circumstances. In this situation, the CDJFS’ best estimate shall be based on projected wages from and hours of employment as reported by the individual. The CDJFS’ best estimate for the pay period shall be converted into a standard month as set forth in rule 5101:1-39-20.2 of the Administrative Code. The CDJFS must remind the individual of his reporting responsibilities, especially regarding to his earnings.
(D) The computed average (and the subsequent conversion to a standard monthly figure) shall remain unchanged until a change in income occurs or until the next reapplication. A reported change in income will require a recomputation of the budget.
(E) All changes in income, resources and circumstances must be reported to the CDJFS in accordance with the provisions set forth in rule 5101:1-38-02 of the Administrative Code. Whenever a change in income is reported (including increases in hourly wages, a change from fluctuating hours to set hours, change in employer, part-time to full-time employment or vice versa), the monthly income must be recomputed according to the policy set forth in this rule and in rule 5101:1-39-202 of the Administrative Code to determine continued eligibility.
HISTORY: Eff 5-1-91 (Emer.); 6-17-91; 10-1-02
Rule promulgated under: RC 111.15
Rule authorized by: RC 5111.011, 5111.01
Rule amplifies: RC 5111.01, 5111.011
R.C. 119.032 review dates: 6/11/2002 and 10/01/2007