.Purpose

Policy

Background

Release Date:

12/20/17

Definitions

Requirements

Verification Docs

CalWORKs

44-101 Income Definitions

Purpose

( X ) To release a new policy

(    ) To release a new form

( X ) To convert existing policy to new writing style only – No concept changes

(    ) Revision of existing policy and/or form(s).

 

To provide:

 

·         Policy regarding the different types of income that a participant could receive; and

·         Notification of the new policy that was implemented effective January 1, 2014.  Veteran’s Disability Compensation (VDC) benefits is now defined as disability-based income wherein a $225 income disregard could be applied. 

Policy

Income is any benefit in cash or received as In-Kind which is reasonably anticipated to be available to the individual or received as a result of current, past, or future:

  • Labor or services;

  • Business activities;

  • Interests in real/personal property; or

  • Contribution from person or organization/agency. 

Background

N/A

Definitions

 

Term

Definition

Available Income

Any income that the applicant/participant may

potentially receive is considered available to the

Assistance Unit (AU).

Reasonably Anticipated Income

When:

·         The gross amount AND the expected date of receipt are known; and

·         The AU is reasonably certain that the income will be received within the Semi-Annual Reporting (SAR) payment period.

 

Note: This is applicable to earned and unearned income. 

Current Income

All income which is available during a month without considering allowable exemptions or disregards. 

Earned Income

Includes the following:

 

·         Cash;

·         In-kind as wages;

·         Salary;

·         Employer-provided sick leave benefits;

·         Commissions/profit from activities (e.g., business enterprise, farming, etc.), in which the applicant/participant is self-employed; or

ü  Self-employment:  Work or employment where the person does not work for someone else.

ü  Commission:  Work or employment in which the participant works for someone else and is not paid an hourly wage, but is based on a set portion of the sales or services.

·         Net income from rental of rooms or board and room.

 

Earned income does not include:

 

·         Benefits from compensation or reward for service or lack of employment (e.g., unemployment income benefits, veteran benefits, etc.); or

·         Training allowance paid to an applicant/participant in the Workforce Investment Act formerly the Job Training Partnership Act Program.

Disability-Based Unearned Income

Any of the following:

 

·         State Disability Insurance;

·         Private Disability Insurance;

o   Privately purchased; or

o   Employer-sponsored disability insurance benefits whether or not there is an employee contribution.

·         VDC benefits;

·         Temporary Workers’ Compensation; and

·         Social Security Disability Benefits. 

 

As of January 1, 2014, the VDC benefits are now included in the definition of disability-based unearned income. 

 

As a result, this population is now entitled to the $225 “Income Disregard.” 

Unearned Income

Income that is not earned or disability-based income. 

Voluntary Contributions

A contribution for which the contributor has no legal liability. 

Death Benefits

Life insurance or burial payments made to a deceased beneficiary. 

Income In-Kind

Any benefit received in a different form other than in cash which includes:

 

·         Housing;

·         Clothing;

·         Food; or

·         Utilities, etc. 

Interest Income

Interest on a savings account in a bank, savings and loan association or other institution authorized to accept savings and interest that is received as a result of any contractual obligation. 

Lump Sum Income

Any income received by an AU that is not recurring regular income. 

 

An example of lump sum income is when a participant receives a retroactive Social Security Insurance (SSI) payment. 

 

Lump sum payments are considered property in the month received and any subsequent months. 

Income Reporting Threshold

The level of income that triggers the need for a CalWORKs AU to report a mid-period change in income. 

Reception and Placement Cash

Refugees receive this type of cash as part of the resettlement services provided by voluntary agencies within the refugee’s first 90 days in the United States (U.S.).  The cash is for reception and placement assistance.

Requirements

N/A

Verification Documents

The following types of documents could be used to verify income:

 

·         Check stubs;

·         PA 1672-1, Request for Employment Verificcation;

·         PA 167, Monthly Earnings Report;

·         Letter from employer;

·         Work Number Abstract; or

·         ST 1-20, Request for Employment Verification.