Earned Income Verification Guide

  • Begin with verification of the past 30 days income/expenses. Look for: begin or end of employment, changes in rate of pay, in work hours or source of pay.
  • If 30 days does not accurately reflect expected income, determine a period of time that is more accurate.
  • Evaluate wage information carefully to determine if it includes overtime or any circumstances not expected to continue.
  • Comments in FAMIS should document the basis and method used for determining the income budgeted. All documents used to establish financial eligibility are maintained in the case record.

INCOME TYPE

SUGGESTED VERIFICATION

POINTS TO CONSIDER ASSURING THAT YOUR INCOME PROJECTION IS ACCURATE.
WAGES AND SALARIES

(STABLE)

 If it is determined that the employment situation will not vary, then converted monthly income would be used.
WAGES AND SALARIES

(FLUCTUATING—NO PATTERN)

 If the past 30 days does not reflect anticipated income, determine a period of time that provides a more accurate indication of future income. Two months is recommended as a basis of review, however, a shorter or longer period may be used to arrive at a better projection of income. Explain in your comment.
WAGES AND SALARIES (FLUCTUATING OR STABLE—SEASONAL/TEMPORARY EMPLOYMENT) Consider using the most recent season comparable to the current period.
TIPS
  • Client’s Tax Records
  • Client’s Statement with wage stubs or other documents
 Worker’s judgment is important.
SELF-EMPLOYMENT

(STABLE—PAID MONTHLY, EXAMPLE: BABY SITTING)
  • Client’s Business Records
  • Tax Return
  • Statements from client’s or customers
 Consider overhead expenses.

See: 10.14.5 Determining Countable Self-Employment Income
SELF-EMPLOYMENT

(FLUCTUATING—PAID MONTHLY, EXAMPLE: HAIRDRESSER)
  • Client’s Business Records
  • Tax Return
 Consider overhead expenses of producing income.
SELF-EMPLOYMENT

(ANNUAL INCOME, EXAMPLES: BUSINESS ENTERPRISE; FARM INCOME)
  • Client’s Business Records
  • Tax Return
 Consider overhead expenses. See: 10.14.5 Determining Countable Self-Employment Income
VERY LOW OR NO INCOME

(FLUCTUATING OR STABLE—SEASONAL)
  • Statement from Employer
  • Client’s Business Records
  • Statements from client’s or customers
 For EUs with no income, accept client’s statement unless questionable