Ohio Administrative Code
Title 5101:1 - Division of Public Assistance
Chapter 5101:1-23 - Income
Section 5101:1-23-20 - Ohio works first: income and eligibility

(a) All wages, back pay, bonuses and awards paid by the employer, commissions, severance pay, payments from job corps, work training programs, on-the-job training programs, sick leave paid as wages, annual leave, holiday and vacation pay.

(b) Wages legally obligated to members of the assistance group but are diverted to a third party, as described in rule 5101:4-4-13 of the Administrative Code.

(c) Earnings of an individual residing with the assistance group who is a required assistance group member but who is ineligible to be included in the assistance group as described in rule 5101:1-23-10 of the Administrative Code.

(d) Earnings of the spouse of a married pregnant woman with no other OWF eligible children.

(e) State temporary disability insurance and temporary workers' compensation payments are considered gross earnings when such payments meet all of the following conditions:

(a) Annuities;

(b) Pensions;

(c) Retirement funds;

(d) Veterans benefits;

(e) Workers' compensation;

(f) Unemployment compensation;

(g) Social security retirement, survivor's and disability insurance (RSDI) benefits;

(h) Cash contributions from persons, organizations or assistance agencies;

(i) Income allocated to the assistance group from a required individual who is ineligible to be included in the OWF assistance group as described in rule 5101:1-23-10 of the Administrative Code.

(j) A non-recurring lump-sum payment that is not anticipated or expected to be received again. Receipt of a non-recurring lump-sum payment is only considered income in the month received;

(k) Child support and alimony payments received by the assistance group.

(a) Availability depends upon the date of receipt and the number of months the income is intended to cover.

(b) In certain instances, income may need to be apportioned to future months.

(c) An employee under an annual contract of employment shall have the income from such contract averaged over the number of months covered under the contract regardless of whether the employee chooses to receive the income in fewer months.

(a) When the representative payee resides in the same household, the total amount of Title II benefits received for the beneficiary is counted in determining the assistance group's eligibility for OWF.

(b) When the representative payee does not reside in the same household as the beneficiary, only that portion made available to the beneficiary and/ or caretaker is countable. Title II benefits retained by a representative payee who does not reside in the same household as the beneficiary are not considered potential income to the OWF assistance group.

(a) Income shall be unconditionally available when the assistance group has only to claim or accept the income, or to establish eligibility for the income; e.g., relative's offer of a contribution, or RSDI benefits.

(b) Ineligibility to participate in OWF results when the assistance group refuses to accept unconditionally available income.

(a) Income received on a weekly basis is multiplied by 4.3.

(b) Income received biweekly (every two weeks) is multiplied by 2.15.

(c) Income received semimonthly (twice a month) is multiplied by 2.

(a) When there are more than four weeks of pay stubs available and the individual states that an average of a longer period of time is more representative because the income received in the most recent four weeks was less or greater than average, the county agency may use all available income-related information for the immediately preceding three-month period. This includes situations when the individual disagrees with the use of income from the past four-week period as representative of future income. Some pay stubs reflect year-to-date earnings and this is an acceptable method of determining average income for longer than the four-week period.

(b) When there are fewer than four weeks of pay stubs available, the county agency may use all available income-related information to arrive at a representative figure. This includes situations when the employed assistance group member disagrees with the use of earnings from the past four-week period as indicative of future earnings.

(a) In situations in which an individual has self-employment income, the county agency shall determine the gross receipts for the month based on an estimate of the individual's gross annual earnings by reviewing copies of his or her tax return from the previous year, as well as the current business records. The income listed on the previous year's tax return shall be used to estimate the expected earnings for the current and future months, unless the individual contests this determination of expected income. The individual's gross monthly earnings should be determined to be one-twelfth of the gross earnings as shown on the tax return for the preceding year. This method of estimating the self-employed individual's income should be applicable in situations in which the individual has been self-employed for some time, the gross earnings from self-employment have remained fairly constant (as evidenced by tax returns from previous years) and there is no anticipated change in circumstances.

(b) When the individual does not have a tax return from the previous year, the county agency shall project an estimate of the individual's annual gross earning from self-employment based on the individual's current business records. The county agency shall determine that one-twelfth of the projected gross earnings from self-employment shall be allocated monthly.

(c) In some situations the previous year's tax return is not representative of the expected earnings for the current year. There are some situations in which it will be difficult to project future earnings from the individual's self-employment and the previous year's tax return or current business records may not be considered to be accurate indicators of the individual's expected earnings for a variety of reasons.

(d) In the absence of both the previous year's tax return and current business records, the county agency shall require the individual to provide a written best estimate of his projected annual income. The county agency shall then determine that one-twelfth of the projected annual gross earnings shall be distributed into all months of the taxable year.

(e) The computed converted monthly figure shall remain unchanged until a change in income occurs as described in paragraph (H) of rule 5101:1-2-20 of the Administrative Code, or until the next reapplication. A reported change in income requires a recomputation of the budget.

(a) Fifty per cent standard deduction from the gross self-employment receipts; or

(b) Actual deductions from the self-employment receipts as described in rule 5101:4-6-11 of the Administrative Code.

(a) The provisions regarding non-allowable deductions from self-employment income, described in rule 5101:4-6-11 of the Administrative Code, are waived. Allowable business expenses shall not exceed seven thousand-five hundred dollars.

(b) The purchase of capital equipment or durable goods up to five thousand dollars.

(c) The interest and principal portion of a secured business loan not to exceed five thousand dollars.

(d) Payments made into an "unencumbered cash reserve account" in any month the total amount in the fund does not exceed three thousand dollars.

(a) Total the monthly gross earned income from each employed family member.

(b) Deduct the actual verified dependent care costs of the assistance group for nonpublicly funded dependent care for a child or an incapacitated adult who is residing in the home. The amount that is deducted is the actual verified cost that is paid for each child or incapacitated adult.

(c) Add unearned income of assistance group members to the amount in paragraph (H)(1)(b) of this rule.

(d) The assistance group is ineligible to receive OWF when the gross income in paragraph (H)(1)(c) of this rule exceeds fifty per cent of the federal poverty guidelines.

(a) The assistance group's gross earned income; minus,

(b) The two hundred-fifty dollar and one-half of the remainder disregards described in division (D)(3) of section 5107.10 of the Revised Code, when applicable; minus,

(c) The actual verified dependent care costs of the assistance group for nonpublicly funded dependent care; plus,

(d) The assistance group's gross unearned income.

(e) The amount in paragraph (H)(2)(d) of this rule is compared to the OWF payment standard for the assistance group size.

(f) The assistance group is ineligible to participate in OWF when the assistance group's countable income equals or exceeds the payment standard.

(a) In accordance with section 5107.04 of the Revised Code, the OWF payment standard shall increase on the first day of each January by the cost-of-living adjustment (COLA) that is made in the preceding year.

(b) Changes to the OWF payment standards due to the cost-of-living adjustment are issued through an action change transmittal, that can be found in the cash assistance manual at the Ohio department of job and family services website .

(a) The work activity expense allowance and the learning, earning and parenting (LEAP) bonus are added after the payment standard is reduced for grant reduction.

(b) When an erroneous payment is recovered by grant reduction, and the individual who caused the erroneous payment was disqualified due to an intentional program violation as described in Chapter 5101:6-20 of the Administrative Code, and who is still residing with the otherwise eligible assistance group, the remaining assistance group members shall retain (from combined income, liquid assets, and assistance payment) an amount equal to ninety per cent of the payment standard for the assistance group excluding the disqualified individual's needs.