20% Work Expense Not Allowed
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20% Work Expense Not Allowed


Revised March 25, 2011



What is a 20% work expense deduction?

 

When is a 20% work expense not allowed?

 

How do I process a 20% work expense not allowed?

 


 

What is a 20% work expense deduction?

 

·         When determining eligibility for Basic Food benefits, 20% of an assistance unit’s (AU’s) gross earned income is subtracted from the AU’s countable income.  See EAZ Manual - WAC 388-450-0185 Does the department count all of my income to determine my eligibility and benefits for Basic Food?

 

When is a 20% work expense not allowed?

 

·         If earned income was not reported as required under EAZ Manual – WAC 388-418-0005 How will I know what changes I must report? and WAC 388-418-0007 When do I have to report changes in my circumstances?, the 20% work expense deduction is not allowed when calculating a basic food overpayment.  

 

·         For information about calculating an overpayment for Basic Food, see EAZ Manual – WAC 388-410-0030 How does the department calculate and set up my Basic Food or WASHCAP overpayment?

 

How do I process a 20% work expense not allowed?

 

·         To process a 20% work expense not allowed, take the following steps:

 

1.      On the AMEN screen, enter Option R – Interim/Hist Change in the Selection field.

 

2.      In the Benefit Month field, enter [the benefit month for which the earned income was previously unreported]. 

 

3.      On the EARN screen:

 

o        Update the existing earned income to include the additional earned income that was reported late. 

 

o        In the Earn Rptd Late field, enter [the amount of earned income that was reported late].

 

4.      Call DONE and commit the data.

 

·         The FSFI screen, Earned Income Deduct field, does not include a 20% Work Expense Deduction on the late reported earned income amount.


EXAMPLE

1.       Basic Food AU member had $200 earnings in February for a job they failed to report to the department. Upon discovery of this job, the worker makes a historical change for the month to show these earnings. As none of this income was reported, the worker enters $200.00 in gross income for the employment and $200.00 in the Earn Rptd Late field.

 

When ACES recalculates the benefit for February, it will budget the $200.00 earned income and not allow any earned income deduction for these earnings when creating the BEG for February benefits.

 

2.       Weekly income of $200 was converted to $860.00 monthly. The client didn't report moving to full-time employment. Weekly income should have been estimated at $250 weekly. The worker would adjust the weekly amount. This converts to $1075.00 monthly. The user would enter the difference between the two amounts ($215.00) in the Earn Rptd Late field.

 

The user would need to jot down the previous calculated amount and do the math to determine the late report amount offline.

 

3.       Basic Food AU member failed to report moving from part-time employment to full time status for June. The user budgeted $500.00 monthly income for the month of June.  Because the client is now working full time, the actual earnings were $800.00. Upon discovery, the user would make a historical change to the earnings for this job. The user would change the earnings for June to $800.00 and enter $300.00 (The unreported amount) in the Earn Rptd Late field.

 

When ACES recalculates the benefit for June, it will budget the $800.00 earned income and only allow the earned income deduction for the originally reported $500.00.

 

4.      Non IPV Disqualified (ND) Basic Food AU member had $200 earnings in February for a job they failed to report to the department. Upon discovery of this job, the user makes a historical change for the month to show these earnings. As none of this income was reported, the worker enters $200.00 in gross income for the employment and $200.00 in the Earn Rptd Late field.

 

When ACES recalculates the benefit for February, it will budget the $200.00 earned income and not allow any earned income deduction for these earnings when prorating all but the ineligible member's share of the income to the eligible members.

 

5.       ND Basic Food AU member failed to report moving from part-time employment to full time for June. The worker budgeted $500.00 monthly income for the month of June. Because the client is now working full time, the actual earnings were $800.00. Upon discovery, the user would make a historical change to the earnings for this job. The worker would change the earnings for June to $800.00 and enter $300.00 (The unreported amount) in the Earn Rptd Late field.

 

When ACES recalculates the benefit for June, it will budget the $800.00 earned income and only allow the earned income deduction for the originally reported $500.00. The 20% deduction of $100.00 would be allowed for the portion of the reported income before prorating all but the ineligible member's share of the income to the eligible members.

 

Modification Date: March 25, 2011