5160-3 CONVERSION FACTORS
Conversion factors are used to convert income to monthly amounts when the individual is paid on a weekly or bi-weekly basis and the individual received or expects to receive a full month’s income.
Weekly
Income – Conversion Factor 4.3
When payments are received on a weekly basis, the individual will receive a fifth payment every third month. Using the conversion factor of 4.3 takes into account this fifth payment.
If income is received weekly, multiply the payment by the conversion factor 4.3 to determine the monthly income. If the weekly payment amount varies, calculate an average payment and multiply this average payment by the conversion factor 4.3 to estimate the monthly income.
Bi-weekly
Income – Conversion Factor 2.15
When payments are received every two weeks
(bi-weekly), the individual will receive a third payment every sixth month.
Using the
conversion factor of 2.15 takes into account this third payment.
If income is received every two weeks, multiply the payment by the conversion factor 2.15 to determine the monthly income. If the bi-weekly payment amount varies, calculate an average payment and multiply this average payment by the conversion factor 2.15 to estimate the monthly income.
Conversion factors are not used:
When estimating a partial month’s income. See Section 5160-6, Estimating Partial Month’s Income.
Conversion factors are not needed when the individual is paid in a single monthly payment or twice a month.
If income is received in a single monthly payment, no conversion is necessary since it is already a monthly amount. If the monthly payment amount varies, calculate an average payment and use this average as the estimated monthly income.
If income is received twice a month, multiply the payment by two to determine the monthly income. If the payment amount varies, calculate an average payment and multiply this average by two to estimate the monthly income.
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