Okla. Admin. Code § 340:10-3-31 - Earned income
(a) The term earned
income refers to monies earned by an individual through the receipt of wages,
salary, commission, or profit from activities in which the individual is
engaged as self-employed or as an employee. A person is considered
self-employed when:
(1) he or she declares
himself or herself to be self-employed;
(2) there is an employer/employee
relationship and the employer does not withhold income taxes or Federal
Insurance Contributions Act (FICA), even if required by law to do so;
or
(3) the employer withholds taxes
and the person provides proof he or she files taxes as self-employed.
(b) Payments made for accumulated
annual leave, vacation leave, sick leave, or as severance pay are considered as
earned income whether paid during employment or at termination of employment.
Temporary disability insurance payment(s) and temporary worker's compensation
payments are considered as earned income if payments are employer funded and
the individual remains employed.
(c) Earned income received as a one-time
nonrecurring payment is considered as a lump sum payment per OAC
340:10-3-28.
(d) Earned income includes in-kind benefits
received by an employee from an employer in lieu of wages or in conjunction
with wages. An exchange of labor or services, for example, barter, is
considered as an in-kind benefit. Such benefits received in-kind are considered
as earned income only when the employee and employer relationship has been
established.
(1) The cash value of the
in-kind benefits must be verified by the employer.
(2) Income from self-employment also includes
in-kind benefits for a work activity or service for which the self-employed
person ordinarily receives payment in the business enterprise.
(3) Medical insurance secured through the
employer, whether purchased or as a benefit, is not considered in-kind
income.
(e) Gross earned
income is used to determine eligibility for assistance. Gross earned income is
defined as the "true wage" prior to payroll deductions and withholdings. Income
that is based on the number of hours worked as opposed to income based on
regular monthly wages must be computed as irregular income.
(f) Countable earned income excludes income
from:
(1) capital investments with respect to
which the individual is not actively engaged. Dividends and interest on rental
properties in the hands of a rental agent with the check forwarded to the
recipient is excluded from "earned income;" and
(2) benefits not in the nature of wages,
salary, or profit accruing as compensation or reward for services, or as
compensation for lack of employment.
(g) The worker verifies income by the best
available information such as pay stubs presented by the individual or an
interview with the employer. The worker verifies medical insurance which may be
available to the employed Temporary Assistance for Needy Families (TANF)
recipient and any dependents at the same time that income is verified.
(1) Pay stubs may only be used for
verification if they have the individual's name or social security number
indicating that the pay stubs are in fact the individual's wages. The stubs
must include the date(s) of the pay period and the amount of income before
deductions. If this information is not included, employer verification is
required.
(2) With new employment,
it is necessary to verify the beginning date.
(3) When a member of the assistance unit
accepts employment and has not received any wages, verification of the amount
of income to be considered and the anticipated date of receipt must be obtained
from the employer.
(4) Verified
income expected to be received during a future month is considered available to
the assistance unit and is counted in determining eligibility for that
month.
Notes
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