If any member of the family appears to be potentially eligible for any other benefit which would provide additional income to the family (e.g. Unemployment, SSI, etc.), the applicant will be required to apply for such benefit and provide verification of the application.

Any adult who states he or she is unable to engage in employment or other work activities due to an alleged long-term disability is required to apply for Social Security or Supplemental Security Income (SSI) disability benefits. (See TEA 2430 regarding work activity deferrals pending a Social Security or SSI disability decision.)

Once it is verified that application for the benefit has been made, then TEA benefits will not be denied or delayed pending a decision on the application. The case should be added to the Worker Alert file or other county control system to check on the status of the application.

The worker should be alert to the potential eligibility of a child to Social Security benefits from a deceased parent or a disabled non-custodial parent.

Verification of Unemployment Insurance (UI) benefit applications may be obtained by inquiring to the WESD screen.

Earned income received in the following situations is not counted in determining the family’s TEA eligibility:

1. Earnings received by a family member in an On-the-Job Training (OJT) placement.
2. Earnings received by a family member in a Subsidized Employment placement.

NOTE: OJT and Subsidized Employment wages are not counted for income eligibility in relation to the Income Eligibility Standard. However, such earnings are considered for purposes of determining whether the payment will be the full amount or the 50% amount. (See TEA 2360.)

3. Earnings from any source received by a non-head of household minor parent or a child member of the family.
4. In-kind earned income.
5. When the unit consists of a minor parent and his or her child, the income of the minor parent’s parent(s) and stepparent.
6. College Work Study earnings.
7. The income of the spouse of a non-parent relative who is included in the TEA cash assistance unit.

Like employee earnings, the monthly amount of self-employment earnings which must be considered is the agency’s best estimate of earned income which will be available to the individual in a month or months. Costs directly related to producing the income are subtracted from the self-employment gross. Only those costs without which the income could not be produced will be subtracted. Such costs do not include depreciation, personal business and entertainment expenses, personal transportation, purchase of capital equipment and payments on the principal of loans for capital assets or durable goods.

For room and board income, a standard $120 per roomer/boarder will be subtracted as the cost related to producing the income.

Self-employment earnings are usually not as predictable as employee earnings and are often received less frequently than monthly. Therefore, in most situations, a time period longer than two months should be used to determine average monthly self-employment earnings.

The first step in computing monthly gross earnings in these situations is to calculate the gross annual income for the previous calendar year. If available, the individual’s Federal Income Tax Return may be used to determine the annual income and the amount of costs related to producing the income. The annual allowable costs are subtracted from the gross annual income. The remainder is then divided by 12 to arrive at an average monthly amount. This figure is treated gross earned income.

EXAMPLE: After expenses, Ms. Smith earns $1200 annually from farming. This amount prorated over 12 months equals $100/month. Therefore, $100 gross earnings would be considered for TEA purposes.

If the previous year’s income is not a fair reflection of the current year’s income, the worker may determine, by averaging recent months or other means, an amount which will fairly reflect the current year’s income. The case record should be documented to clearly reflect the manner in which the income was determined and the basis for considering it a fair reflection of the current year’s income.

The first step in computing monthly gross income in these situations is to determine an average monthly gross based on the latest two month’s income. Verification of the latest two months’ gross income and costs related to producing the income should be obtained. After allowable self-employment costs are subtracted from the monthly gross, an average of the latest two months will be determined to arrive at the monthly gross earnings which will be used to determine income eligibility.

NOTE: A standard $120 per roomer/boarder will be subtracted as the allowable costs for producing room and board income.

EXAMPLE: Ms. Woods sells Tupperware products and provides copies of her last two months’ order invoices. These show her total sales and the items she had to purchase such as hostess gifts, receipt books, etc. For each month, her total gross income from sales less the costs related to producing the income is determined. These amounts are then averaged to arrive at a monthly gross earnings amount of $250.

If the latest two months’ income is not a fair reflection of the individual’s current income, then another method to determine the average monthly income may be used (e.g., an average of more than two months’ income). The case record should be documented to clearly reflect the manner in which the income was determined and the basis for considering it a fair reflection of current income.

The self-employment income computation will be documented in the case record.

If an individual states he or she is unable to engage in work activities, then discuss this with the participant to ascertain the reasons why the individual believes he or she is unable to participate.

If an individual is exempt or deferred from work participation requirements:

• The exemption or deferral will be granted as soon as it is established but no later than 30 days from the date it is claimed.
• The time limit will not count in the months he or she is exempt/deferred; and
• The appropriate exempt/deferral code must be keyed to ACES so that the exempt/deferral month is not counted. (Refer to the DCO User’s Manual for codes,)
• The caseworker will advise the individual that the deferred/exempt months do not count towards the 24-month time limit.

If an otherwise required participant meets one of the above, verify, to the extent possible, the reason for deferral and document the case record accordingly.

For short-term medical deferrals,

• a doctor’s statement or other medical documentation should be obtained.
• the statement should clearly state or otherwise indicate that the person is unable to engage in work activities because of the medical condition; and,
• whenever possible, give an estimated length of incapacity.

If the individual alleges a long-term disability:

• a referral will be made to Arkansas Rehabilitation Services for an assessment.
• If otherwise eligible, the application will be certified and the individual may be deferred pending the ARS assessment. (See TEA 3700)
• The individual will also be required to apply for SSA/SSI disability benefits.

NOTE: A medical statement will not suffice as documentation for continued deferral following the ARS assessment. Only the ARS assessment will be accepted for deferral purposes for long-term disabilities.

The referral to the OCSE is system generated from information keyed by the County Office to the WAPU screen on ACES from Form DCO-115. A referral will be made on the following persons:

1. The absent parent of any minor child or unmarried minor parent who is not the head of household.  If both parents are absent from the home, a referral will be made on each parent.

In single parent adoption situations, there is no OCSE referral to make unless the adoptive single parent is absent from the home.

If "good cause" has been determined to exist, no referral to the OCSE will made on the parent on whom the claim was based. The "good cause" indicator code will be entered on the child’s member record on ACES.