20% Work Expense Disallowed

Revised October 28, 2007

Overpayments calculated in ACES allow for the option of not applying the 20% earned income deduction for Basic Food.

A Basic Food overpayment calculated for one or more benefit months from 01/97 forward gives the user the option to allow the 20% earned income deduction for earnings reported late.

When establishing an overpayment a user can note in ACES on the EARN any portion of the earned income that was reported late and not have the 20% work expense deduction allowed. ACES allows for only that portion of the earned income that was determined to be reported late to not have the 20% deduction applied to and still apply the 20% deduction to the earnings reported timely.
The user can enter on the EARN in the Earn Rptd Late field the portion of earnings in a historical month that were reported late in addition to the the total earnings amount.
The portion of earnings reported late is displayed in the Late Rptd Earned Inc field on the FSFI separately from the total earnings reported.

EXAMPLE

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.
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.
Basic Food AU member failed to report moving from part-time employment to full time status for June to the department. 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.
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.
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.

	ACES	Search for:

Acronyms Alerts Screens WAC Number Index WCCC DSHS Home