820-4 NOT a FULL MONTH'S INCOME
1. When the individual will receive all the scheduled payments in the month, but one or some of the payments do not cover a full payment period, total the income already received and any additional amount anticipated to be received during the month, and use this amount for the month. This situation often occurs when the individual begins employment after the pay period starts, or stops working before the pay period ends, resulting in the first or last paycheck covering less than a full pay period. It may also occur when individuals begin receiving or stop receiving unemployment insurance benefits.
When the person is not employed for the full pay period, anticipate the number of hours that will be worked in the pay period and multiply this number of hours by the hourly wage. Use this amount in the estimate of income for this month.
Example 1: Starting Employment
Sue applies for benefits on June 6. She recently started working on May 28. She gets paid $10 an hour and works 5 hours a day, Monday through Friday. She’ll be paid twice a month on the 5th and 20th. Pay periods are the 1st through the 15th and the 16th through the end of the month. Her June 5 check was only $200 for the four days she worked in May (4 days x 5 hours/day = 20 hours x $10 = $200). Her June 20 check is anticipated to be $550 for the eleven work days she anticipates working during the June 1 through 15th pay period (11 days x 5 hours/day = 55 hours x $10 = $550). Sue’s June income is determined by adding the payment she received on June 5 to the payment she expects to receive on June 20. ($200 + $550 = $750).
Income in future months will be estimated based on information from Sue and the employer about the amount of pay that is expected.
Example 2: Starting Unemployment Benefits
Elizabeth applies for benefits on April 16. She filed for unemployment benefits last month and received her first unemployment payment on April 13. The ET verifies the payments on the Dept. of Labor UIB interface, noting that Elizabeth’s UIB waiting week was March 25 and she received a $120 payment for only one week on April 13. She will receive another payment on April 27 for $240, representing two benefit weeks. Since the first payment was for only one benefit week due to the waiting week required when benefits begin, for April the ET will count $360 unemployment income. For May and beyond, the ET anticipates she will get all of the scheduled payments, and will multiply the regular $240 bi-weekly payment by 2.15 to convert it into a monthly income estimate of $516. This amount will be used to determine benefits for subsequent months, unless a change is reported.
Example3: Ending Unemployment Benefits
Elizabeth reports on June 15 that her unemployment benefits are ending and that she will get her last payment on July 20. It will be for only one week in the amount of $120. She will also get a payment of $240 for two weeks of unemployment benefits on July 6. Since the last payment will be for only one benefit week, for July the ET will count $360 unemployment income ($240 + $120 = $360).
Exception for Third or Fifth Payment:
When an individual is paid weekly or bi-weekly and receives a fifth or third payment that covers less than a full payment period, estimate this month’s income by totaling the payments received in the month, dividing this amount by the number of payments to get an average amount, and then multiply the average amount by 4.3 weekly or 2.15 bi-weekly to get an estimated monthly amount.
Example:
Peggy was laid off from work for the summer. Her last day of work was May 16. She was paid every other week and received $1000 on May 2 (80 hours at $12.50/hour for pay period ending April 25) and $1000 May 16 (for pay period ending May 9). She expects one more check on May 30 for $500 for the 40 hours worked during the pay period ending May 23. The ET totals the three checks and divides by three ($1000 + $1000 + $500 = $2500/3 = $833.33) to determine an average payment amount, then multiplies this amount by 2.15 since she is paid every other week ($833.33 x 2.15 = $1791.65). The ET counts $1791.65 earnings for May. No income from this source would be counted in subsequent months. The ET must recalculate benefits for June using the amount of anticipated income from other sources, if any.
2. When the individual does not receive all the scheduled payments in the month, total the income already received and anticipated to be received during the month and use this estimated amount for that month. Situations when this may occur include:
The employee is on unpaid leave for an entire pay period due to sickness, temporary lay-off, or vacation;
School district employees have an unpaid holiday break that covers an entire pay period;
UIB stops because of excess earnings for two benefit weeks in a row, causing the UIB recipient to miss one or more two-week payment(s).
Example: All Scheduled Pay Checks Not Received
Dan reports on December 16 that he will be on unpaid leave for two weeks, December 20 through 31. He normally gets paid every two weeks, but this unpaid leave will cause him to miss one paycheck. For January, he will receive only one two-week paycheck on January 21. The ET calculates the January income by counting only the amount anticipated on the January 21 check. For February, the ET will estimate a new earned income amount based on regularly scheduled paychecks issued every two weeks.
Example #1: All Unemployment Payments Not Received
Jenny is receiving unemployment benefits, but recently got a temporary part-time job. She received her regularly scheduled $200 UIB check on May 7th for the two benefit weeks April 22 and April 29. She was not eligible for unemployment benefits for the next two weeks because of her earnings. She is no longer working and expects to get another $200 UIB check around June 5. Since she only got one unemployment payment in May, the ET counts $200 unemployment income for May and her earnings paid in May. The ET must recalculate June benefits based on anticipated income for that month.
Example #2: All Unemployment Payments Not Received
Marjie applies for assistance on August 20. She is receiving unemployment benefits of $130 a week, but payments are expected to end next month. According to the DOL system, she was issued $260 on August 10th for benefit weeks ending July 28 and August 4. Her balance remaining is $390. $260 is expected to be issued on August 24, and the remainder in September. The ET calculates August income by multiplying the $260 bi-weekly payment by 2.15 ($260 x 2.15 = $559) since both payments covered full payment periods. For September, the ET counts only the remaining $130 unemployment income she anticipates receiving ($390-$260=$130) since she will not receive all of the scheduled payments in September. The ET must do another estimate for October to remove the unemployment benefit that ends in September.
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