Other Earned Income

Targeted Assistance

Targeted Assistance is funds received by refugees who are participating in the Targeted Assistance Program.

  • Policies regarding the WIA income of the CalWORKs child also apply to Targeted Assistance for refugee children.
  • Policies regarding the WIA income of the CalWORKs adult also apply to Targeted Assistance for refugee adults.

Contract Earnings

Generally, contract earnings are counted as received. However, when a recipient has an annual contract of employment and receives income from that contract in fewer than 12 months but more than 8 months, that income is to be prorated over the entire period of the contract.

Note: This usually occurs with teachers. The contract runs from September through the following August. The teacher is paid in the months of September through June. Take the annual amount, divide by 12, and count the result as earned income each month.

Profit Sharing Income

In most situations, profit sharing is earned income.

  • It is included in the gross earnings when received.
  • The client receives the Earned Income Disregard.

Retirement Plans

With a few employers, profit sharing is used as a retirement plan.

  • The employees make a voluntary contribution to the plan out of their wages and employer provides matching funds.
  • When the employee retires, the funds received must be separated by the percent of employee contribution (counted as converted property) versus the percent of employer contribution (counted as unearned retirement income).

Paid Work Experience (PWEX)

PWEX positions are in the non-profit sector. The County of Santa Clara is the employer of record and pays wages directly to the client. Clients are paid at a rate determined by the county and are employed 20 hours per week. These positions are six months in length. The income earned is considered Nonexempt income for the purpose of determining eligibility for public assistance. Refer to CWES Handbook Employment Connection Tier II - Paid Work Experience (PWEX) for more information.

Salary Advances

[44-101.5]

Salary advances are counted as earned income in the month received and are entitled to the Earned Income Disregard.

In the month the advance is deducted from the recipient's check, deduct the advance before applying any Earned Income Disregard.

Vacation Pay

[44-101.5]

Most vacation pay is counted as earned income when received.

If the recipient has accumulated vacation pay through mandatory deductions on the regular pay check (truckers, electricians, plumbers and others who are paid vacation by a union rather than by an employer) do not allow the Earned Income Disregard. The EW will follow the procedures to register the U-Parent with Employment Services. Refer to Employment Services Referrals

  • When meals are included in the gross amount, do not include that amount as gross earnings.

Related Topics

Earned Income

WIA Income

Job Corps

Tips and Meals

Treatment of Excluded Persons Income