SECTION 340:40-7-13. Computation of income

(a)   Ongoing income. Income from an ongoing source received regularly but in amounts that vary, or income received irregularly, is averaged over a minimum of 30-calendar days unless the client has not received at least 30-calendar days of representative income. This includes overtime pay, irregular child support, and other occasional increases or decreases in monthly gross income. When income is received more often than once per month, the income is converted to a monthly amount.

(b)   Income verification. The worker verifies the household's income using the best available information.

(1)   When at application or renewal the person received at least 30-calendar days of income, the best available information is normally the person's pay stubs or an employer statement. When neither source is available, the worker uses whatever records are available that best establish the income already received and expected for future months.

(2)   When the client's ongoing employment income changed and the last 30-calendar days of income is not indicative of future earnings, the best available information may be an employer statement. When work hours remain the same but the client received a pay raise, the worker averages the person's work hours over the last 30-calendar days and multiplies the averaged hours by the new pay rate.

(3)   For earned income, pay stubs are used for verification only when the client's name or Social Security number, date(s) of the pay period, and amount of income before deductions are shown on the pay stub. When this information is not shown on the pay stub, or pay stubs are not available, phone contact with the employer or an employer statement is required.

(4)   When a household member starts a new job, the worker verifies the person's start date, date the first full paycheck is expected to be received, hourly rate, and anticipated number of hours per week.

(c)   Income calculations at initial certification. For an initial certification, the worker calculates income using procedures in (1) through (4).

(1)   When household income is ongoing, the worker uses actual income received for the approval month, except when:

(A)   all income for the month has not been received and verified. When this occurs, the worker uses any full representative paychecks to anticipate income not yet received for the approval month and future months; or

(B)   the person received an additional check in the approval month due to a third or fifth week. When this occurs, the worker averages the last 30-calendar days of income for the approval month and future months.

(2)   When income is ongoing and actual income is used for the approval month, the worker averages the last 30-calendar days of representative income and converts it to a monthly amount for the following month.

(3)   When income is from a new source and the person did not receive any income as of the approval date, the worker does not consider income for the approval month per Oklahoma Administrative Code (OAC) 340:40-7-10.

(A)   Income expected to be received in the month following the approval month is anticipated and considered when a full check is expected to be received on or before the first of the month following the approval month.

(B)   When only partial earnings are expected to be received in the month following the approval month, earnings are not considered until the next month.

(4)   The worker adds together all countable earned and unearned income to arrive at the household's gross income.

(d)   Income calculation at renewal. To calculate income at renewal, the worker determines eligibility based on circumstances anticipated for future months using the best information available.

(1)   The worker adds together all countable earned and unearned income to arrive at the household's gross income.

(2)   When the household reports earned income from a new source at renewal, the worker considers the earned income effective the first month a full check is expected to be received by the first of that month.

(e)   Income deduction. After computing gross income, the worker subtracts any verified, legally-binding child support payments paid by a household member to or for a non-household member, including child support and child care support payments made to a third party on behalf of the non-household member.

(f)   Income eligibility threshold. The worker uses Oklahoma Department of Human Services Appendix C-4, Child Care Eligibility/Copayment Chart to determine if the household meets the income threshold, per Section 98.20(a)(2) of Title 45 of the Code of Federal Regulations.

[Source: Added at 17 Ok Reg 25, eff 10-1-99 (emergency); Added at 17 Ok Reg 1244, eff 6-1-00; Amended at 20 Ok Reg 2048, eff 7-1-03; Amended at 20 Ok Reg 2800, eff 8-1-03 (emergency); Amended at 20 Ok Reg 2916, eff 8-1-03 (emergency); Amended at 21 Ok Reg 1377, eff 7-1-04; Amended at 21 Ok Reg 1364, eff 9-1-04; Amended at 24 Ok Reg 1027, eff 6-1-07; Amended at 25 Ok Reg 920, eff 6-1-08; Amended at 26 Ok Reg 820, eff 6-1-09; Amended at 27 Ok Reg 1220, eff 6-1-10; Amended at 35 Ok Reg 36, eff 10-1-17 (emergency); Amended at 35 Ok Reg 1647, eff 9-17-18; Amended at 36 Ok Reg 363, eff 3-1-19 (emergency); Amended at 37 Ok Reg 1813, eff 9-15-20]