Haw. Code R. § 17-798.3-10 - Income considered in eligibility determination

(a) Monthly gross income of each individual counted in the family unit shall be used to determine income eligibility of the family unit, except for individuals identified in subparagraphs 17-798.3-9(b)(1)(A) and (B), by using one of the following:

(1) The average of the prior two months gross income for existing employment;

(2) The monthly gross income received in the prior month for existing employment;

(3) The monthly gross income that is anticipated to be received from prospective or new employment.

(A) Weekly gross income anticipated to be received shall be converted to a monthly gross income by multiplying the weekly income by 4.3333.

(B) Bi-weekly gross income anticipated to be received shall be converted to monthly income by multiplying the biweekly income by 2.1667.

(C) Semi-monthly income anticipated to be received shall be converted to monthly income by multiplying the semi-monthly income by 2; or

(4) Gross income from the caretaker's business or self-employment, such as selling real estate, or engaging in fishing and farming, which provide irregular income over a period of six months, may be averaged to determine the monthly income for the budget month.

(b) Monthly gross income means monthly sums of income received from sources such as but not limited to:

(1) Gross income (before deductions are made for items such as, but not limited to, taxes, union dues, bonds, and pensions) from:

(A) Wages;

(B) Salary;

(C) Armed forces pay, excluding basic housing allowance;

(D) Commissions;

(E) Tips;

(F) Piece-rate payments; or

(G) Cash bonuses earned;

(2) Social security pensions and survivors' benefits (prior to deductions for medical insurance) including:

(A) Railroad retirement insurance checks from the U.S. government; and

(B) Permanent disability insurance payments made by the Social Security Administration;

(3) Unemployment insurance benefits such as:

(A) Compensation received from government unemployment insurance agencies or private insurance companies during periods of unemployment; and

(B) Any strike benefits received from union funds;

(4) Worker's compensation benefits and temporary disability insurance benefits:

(A) Worker's compensation benefits include compensation received from private or public insurance companies for injuries incurred at work;

(B) Temporary disability insurance benefits include compensation received from private or public insurance companies for short-term disabilities resulting from off-the-job sickness or injury; and

(C) The cost of the insurance shall have been paid by the employer and not by the employee, and the benefits are made to individuals who continue to be considered employees of the company;

(5) Pensions and annuities, including pensions or retirement benefits paid to a retired person or the person's survivors by a former employer or by a union, either directly or by an insurance company;

(6) Veteran's pensions and other benefits, which include:

(A) Money paid periodically by the Veteran's Administration to:

(i) Survivors of deceased veterans; or

(ii) Disabled members of the armed forces;

(B) Subsistence allowances paid to veterans for:

(i) Education; or

(ii) On-the-job training; and

(C) Refunds paid to former members of the armed forces as GI insurance premiums;

(7) An allotment of a member of the armed forces;

(8) Alimony;

(9) Child support, including support or maintenance for or on behalf of a son or daughter who is over eighteen years of age;

(10) Public assistance payments from another state prior to any reduction of the monthly assistance payment due to overpayment recovery;

(11) Hawaii public assistance payments prior to any reduction of the monthly assistance payment due to overpayment recovery in accordance with chapter 17-683;

(12) Adoption assistance payments;

(13) Dividends from stockholdings or memberships in associations;

(14) Periodic interest on savings or bonds;

(15) Income from estates or trust funds;

(16) Income from rental of property after business expenses;

(17) Royalties;

(18) Income received from self-employed activities:

(A) To be considered self-employed, the individual shall meet the definition of self-employed as established under this chapter and generate the required income at the time of eligibility and in each subsequent month. This must be considered first as monthly earned income when determining eligibility for child care payments as a self-employed person.

(B) Income received from non-farm self-employed activities means the gross receipts minus expenses for an individual's own business, professional enterprise, or partnerships.

(i) Gross receipts shall include the value of all goods sold and services rendered.

(ii) Expenses shall include the costs of goods purchased, rent, heat, light, power, wages and salaries paid, business taxes, and other similar costs.

(iii) The value of salable merchandise consumed by the proprietors of retail stores shall be included as part of net income.

(iv) Items such as depreciation, personal, business and entertainment expenses, transportation, purchase of capital equipment, and payments on the principal of loans for capital assets or durable goods, and state or federal taxes paid shall not be deducted as business expenses. Personal expenses such as lunches and transportation to and from work shall not be deducted as business expenses.

(C) Income received from farm selfemployed activities means the gross receipts minus operating expenses from the operation of a farm by a person on the person's own account, as an owner, renter, or sharecropper.

(i) Gross receipts shall include the value of all products sold, government crop loans, money received from the rental of farm equipment to others, and incidental receipts from the sale of wood, sand, gravel, and similar items;

(ii) Operating expenses shall include the cost of feed, fertilizer, seed, and other farming supplies, cash wages paid to farmhands, cash rent, interest on farm mortgages, farm building repairs, farm taxes (not state and federal income taxes), and other similar expenses;

(iii) The value of fuel, foods, or other farm products used for family living shall not be included as part of net income;

(iv) Items such as depreciation, personal, business and entertainment expenses, transportation, or state and federal taxes paid shall not be deducted as business expenses. Personal expenses such as lunches and transportation to and from work shall not be deducted as business expenses; and

(19) Free rent converted to a cost compensation when it is exchanged for an activity instead of wages or salary. The department shall determine this by multiplying the State minimum wage multiplied by forty hours a week multiplied by 4.3333 weeks. When work is less than forty hours a week, use the actual number of hours worked in the month multiplied by State minimum wage.

Notes

Haw. Code R. § 17-798.3-10

[Eff 8/6/2021] (Auth: HRS § 346-14) (Imp: HRS § 346-14)