5160-2        CALCULATING AN AVERAGE PAYMENT

A caseworker will calculate an average payment when there are known payment amounts from a source, the payment amounts vary, and the frequency of payment is expected to remain about the same.  To calculate an average payment amount, add together recent payments from the same source and divide this total by the number of payments.  To do this calculation, use recent payments that represent what is likely to be received, including actual payments already received in the month.  Payments that do not represent a regular payment may be excluded in the calculation, for example, one-time overtime or an increase or decrease in hours that is not expected to continue.

Example:  

Debra is employed as a housecleaner at a motel, and works varying hours depending on how many rooms were rented the previous night.  She is paid twice a month and provides her last three pay stubs, showing gross earnings of $600 on March 20th, $585 on April 5th, and $660 on April 20th.  Neither Debra nor her employer is able to predict how many hours she will work in a coming pay period, but both agree that her expected income will be about the same as her past earnings.  Calculate an average payment by adding the pay amounts together and dividing by three ($600 + 585 + 660 = $1845 divided by 3 pay periods = $615).