Eligibility for the 50% Earned Income Disregard
As an incentive to clients to seek and maintain employment, all of their earnings are not counted. This practice is called disregarding income. Disregards are used to determine how much of the earnings will count towards the cash benefits.
For clients who are ineligible to receive the 12-payment counter for the 100% Earned Income Disregard, after the Work-Related Expense Deduction is applied, we disregard an additional 50% of the remaining earned income:
The 50% Earned Income Disregard occurs automatically if eligible. Furthermore, this disregard will apply at different points within the application process depending on the following circumstances:
The 50% Earned Income Disregard cannot be applied:
in any month in which a change affecting income was not reported within 10 days
to applicants or clients who reduce or terminate employment without Good Cause within 30 days of the date of application
to otherwise eligible individuals who are sanctioned
to stepparents, parents of minor parents or certain ineligible clients
to ineligible non-citizens
If Good Cause does not exist and the client is not eligible to receive the 50% Earned Income Disregard you must suspend the disregard on the Income Disregards page in the Assessed Person Income and Expenses workflow before the EBC calculation process
Employment Policy and Procedures