Current through Supplement No. 394, October, 2024
1. The department
shall establish an employment incentive, and an employment incentive limit, to
reasonably encourage household members to earn income.
2. If permitted under subsection 3, income
must be disregarded, as an employment incentive, in determining the cash grant
amount.
a. The greater of one hundred eighty
dollars or twenty-seven percent of the household's monthly gross earned income,
except earnings of any child who is a full-time elementary or high school
student, is disregarded as a standard employment expense allowance. The amount
remaining is net earned income.
b.
Any net earned income that exceeds the income incentive limit is treated as
countable earned income.
c. A
portion of net earned income that is equal to or less than the income incentive
limit may be disregarded, under this subdivision, in determining countable
earned income.
(1) If an applicant has earned
income in the month of application or the month after the month of application,
at least fifty percent of the net earned income may be disregarded for six
months beginning the month in which the earned income is first
budgeted.
(2) If a recipient has
earned income, at least thirty-five percent of the net earned income may be
disregarded for months seven through nine beginning the month earned income is
first budgeted.
(3) If a recipient
has earned income, at least twenty-five percent of the net earned income may be
disregarded for months ten through twelve after the month earned income is
first budgeted.
(4) If a recipient
has earned income, no net earned income may be disregarded under this
subdivision after the twelfth month after the month earned income is first
budgeted.
(5) Individuals that have
received a full twelve months of the incentive known as the time-limited
percentage will not be eligible for this incentive again unless the individual
has been off assistance for twelve or more months.
d. An employed household member who receives
an employment incentive disregard for a period of at least six consecutive
months is provided employment incentive disregards of at least fifty percent
for the first six months beginning the month in which the income is first
budgeted, at least thirty-five percent for months seven through nine, at least
twenty-five percent for months ten through twelve, and none
thereafter.
e. An employed
household member who receives an employment incentive disregard for a period of
less than six consecutive months is, upon reemployment, provided the employment
incentive disregards the member would have received if the first month of
reemployment was the first month income is budgeted retrospectively.
f. If an employed household member, who is
receiving the employment incentive disregard, voluntarily terminates employment
and is unable to show good cause for failure or refusal to participate, the
employment incentive disregard cycle continues as if the household member was
employed.
g. If any nondisregarded
income remains, a health insurance premium, or paid child or spousal support,
if applicable, may be disregarded.
h. If any nondisregarded income remains,
child and dependent care costs that are employment-related or a combination of
employment-related and education or training-related may be
disregarded.
3. An income
disregard is available if the eligible employed individual previously received
assistance, has not received temporary assistance for needy families at least
twelve months or has not completed the twelve month earned income employment
incentive disregard cycle, including months in which the earned income
disregard was unavailable because:
a. No
payment was made because the calculated cash grant was less than ten dollars;
or
b. The household voluntarily
requested termination of assistance for the primary purpose of avoiding
completion of the earned income employment incentive disregard cycle or any
part of that cycle.
4.
If, in any month, additional income received from a recurring source causes the
household to be suspended as ineligible for one month, the month of suspension
does not count as a month for purposes of this section.
5. Nonhousehold member deduction for
stepparent and minor parent budgeting, if applicable, may be made.
