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Child Care Assistance Program (CCAP) Policy Manual

Child Care Assistance Program (CCAP) Policy Manual


6.15.21 Annualizing Work Bonuses and Overtime Pay

ISSUE DATE: 07/2024

Bonuses and overtime pay are wages. They may be considered ongoing, temporary or nonrecurring income.

Ongoing work bonuses and overtime pay

If the work bonus or overtime pay is regular or recurring, annualize it for 12 months.

For example:

  • · A parent receives overtime pay consistently every paycheck. Annualize the overtime for 12 months.
  • · A parent receives a regular quarterly bonus. Annualize the bonus using “Quarterly” in the “Amount Frequency” field on the Earned Income window in MEC².
  • Temporary work bonuses and overtime pay

    If the overtime or bonus income is for a specific period of time, that is available at the application or redetermination period, annualize it as temporary income for the specific time period.

    If the income is received during the 12-month eligibility period and will put the family’s income over 85% SMI, annualize the income as temporary income for the specific time period.

    If the overtime income or bonus income is for a specific period of time expected to be received later in the 12-month eligibility period, annualize as expected future income. See Chapter 6.15 (Annualizing income).

    Nonrecurring work bonus and overtime pay

    If the work bonus or overtime income is for one-time only, is infrequent or is irregular, annualize it as nonrecurring income when received.

    Legal Authority

    Minnesota Statutes 119B.09
    Minnesota Statutes 119B.011
    Minnesota Statutes 256P.01
    Minnesota Statutes 256P.06
    Minnesota Rules 3400.0170

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