Chapter 4: Income and Family - State of Michigan



Chapter 4: Income and FamilySection 4-1: Income Levels for Low-Income StatusTitle I of the Workforce Innovation and Opportunity Act (WIOA) at (134(c)(3)(E) requires the United States (U.S.) Secretary of Labor to update and publish the Lower Living Standard Income Level (LLSIL) tables annually, for uses described in the law, including determining eligibility for youth. The WIOA defines the term ‘‘low-income individual’’ as one who qualifies under various criteria, including an individual who received income for a six-month period that does not exceed the higher level of the poverty line or 70 percent of the LLSIL.Low-IncomeLow-income has a statutory definition, as stated in the WIOA Section 3(36)(A) – based on poverty level or LLSIL.Low-income status is irrelevant for Dislocated Worker eligibility.In each local area, not more than 5 percent of youth participants (the individuals assisted) may be persons who would be covered individuals (an in-school youth (ISY), or an out-of-school youth (OSY) who is described in sub-clause (III) or (VIII) of the WIOA Section 129(1)(B)(iii)), except that the persons are not low-income individuals.There are several different categories of low-income:Receives, or in the past six months prior to application has received, or is a member of a family that is receiving or in the past six months prior to application has received:Assistance through the Temporary Assistance for Needy Families (TANF) program under Part A of Title IV of the Social Security Act (42 U.S. Code [USC] 601 et seq.).Assistance through the Supplemental Security Income program under Title XVI of the Social Security Act 42 USC 1381).Refugee Assistance.Assistance through the Supplemental Nutrition Assistance Program (SNAP) under the Food and Nutrition Act of 2008 (7 USC 2011 et seq.). The SNAP is also known as the Food Assistance Program.Cash payments under a federal, state, or local income-based public assistance programReceived an income, or is a member of a family that received a total family income for the six-month period prior to application for the program which, in relation to family size, does not exceed the higher of the poverty level (for the equivalent period of time) or 70 percent of the LLSIL for the period.Documentation should be provided for each applicable inclusive income source received by the applicant and each family member for the six months preceding the determination date. It is necessary to verify family size when utilizing family income eligibility. This may require establishing that the family is living in a single residence.Is a Youth who receives, or is eligible to receive free, or reduced price, lunch under the Richard B. Russel National School Lunch Act (42 USC 1751 et seq.). Note: this includes only the individual who is eligible for a free or reduced lunch. It does not extend to other family members who are not themselves eligible. Additionally, while the free/reduced lunch, low-income category primarily applies to ISY, there is one exception where it could apply to an OSY. If an OSY is a parent living in the same household as a child who receives or is eligible to receive free or reduced price lunch based on their income level, then such an OSY would meet the low-income criteria based on his/her child’s qualification. This does not apply to Adult or Dislocated Worker participants.In schools where the whole school automatically receives free or reduced price lunch, the WIOA programs must base low-income status on an individual student’s eligibility to receive free or reduced price lunch.Qualifies as a homeless individual.Is a foster child on behalf of whom state or local government payments are made.Is an individual with a disability whose own income meets the income requirements described for a family size of one, but who is a member of a family whose income does not meet such requirements.Is a youth living in a high-poverty area.The Michigan Works! Agency (MWA) staff shall use the appropriate income and poverty levels, per the poverty guidelines updated periodically in the Federal Register by the U.S. Department of Health and Human Services under the authority of 42 USC 9902(2), to determine the reference guideline for income levels for low-income status.Poverty Levels and LLSILThe Michigan Talent Investment Agency has determined that when an MWA includes areas covered by more than one LLSIL, the higher LLSIL amount shall be used for the whole MWA.NOTE: For a particular family size, the level provided is either 70 percent of the LLSIL or the poverty level, whichever is the greater of the two figures.The MWAs which shall utilize the poverty/non-metropolitan LLSIL are:West CentralRegion 7BUPWARD Talent CouncilNorthwest MichiganNortheast MichiganThe MWAs utilizing the poverty/metropolitan LLSIL are:Berrien/Cass/Van BurenMichigan Works! SouthwestSoutheast Michigan ConsortiumCapital Area Michigan Works!West Michigan Works!Great Lakes BayGST Michigan WorksOakland CountySoutheast Michigan Community AllianceDetroit Employment Solutions CorporationMacomb/St. ClairReferencesThe WIOA Section 3(36)(A)The WIOA Section 129(1)(B)(iii))The WIOA Section 134(c)(3)(E)The WIOA Final Rule 20 Code of Federal Regulation (CFR) 681.280Federal Registry for LLSILSection 4-2: FamilyTo determine the low-income status and family size, per Training and Employment Guidance Letter (TEGL) 26-13, the definition of family is used. The definition of “family” is two or more persons related by blood, marriage, or decree of the court who are living in a single residence and are included in one or more of the following categories:A husband, wife, and dependent children.A parent(s) or guardian(s) and dependent children.A husband and wife.The issue of guardianship concerning dependent children may be determined by a decree of court or may be determined by a state or federal agency which has established or assumed guardianship.Although the definition of “family” uses the terms “husband” and “wife,” the Employment and Training Administration (ETA) interprets these terms as gender neutral, based on the U.S. Supreme Court’s decision in United States v. Windsor.? Consistent with the ETA’s policy to recognize same-sex marriage, same-sex spouses are included within the WIOA’s definition of “family.”A person not meeting the definition of family is considered to be an individual (often known as a family of one). Additionally, a family of one includes:A person with a disability, andAn individual who is currently in foster care.As a reminder, the revised definition of “husband” and “wife” as gender neutral in the definition of “family” could impact an individual’s family income calculation.Family IncomeIncludes all income actually received by the members of the registrant's family during the income determination period of six months prior to application. Only the income for individuals included in the registrant's family size is considered when determining family income.? In addition, the income of these family members is only to be counted during the periods the persons are actually members of the registrant's family unit.When a registrant indicates an absence of income or other means of support for the income determination period, an explanation of how the person supported him/herself must be included in the comment section of the WIOA Registration Form or included on a Participant Statement or Self-Attestation Form.Inclusions and ExclusionsInclusionsThe following are examples of family income that are included:Gross Wages and Salary The total money received (amount paid before deductions) from work performed as an employee including:Gross wages and salaries.missions.Piece rate payments.Cash bonuses.Vacation pay (this includes Armed Forces terminal leave pay).Income earned through the senior community service employment program. Self-Employment Income Net income (gross receipts, minus operating expenses) from a business firm, farm, or another enterprise (including odd jobs), in which a person is engaged on his/her own account.? If net self-employment income reflects a deficit amount, income from the source is to be considered "0" when calculating family income. Self-employed includes a farmer, rancher, fisherman, professional person, independent trades person, and other business people.Regular payments from railroad retirement, strike benefits from union funds, worker's compensation, veteran's payments, and training stipends.Alimony.Military family allotments, excluding allotments for active duty, or other regular support from an absent family member or someone not living in the household.Pensions whether private, including employer contributing 401(k), or government employee (including military retirement pay).Regular insurance or annuity payments.College or university grants, fellowships, scholarships, and assistantships.Dividends, interest, net rental income, net royalties, and periodic receipts from estates or gambling or lottery winnings.Income received by the participant as part of a WIOA On-the-Job Training payment.Unemployment compensation.Child support payments.Old Age, Survivors and Disability Insurance benefits (including Social Security Disability Income [SSDI] received under Section 202 of the Social Security Act [42 USC 402]).In programs that require income-based eligibility to receive services, amounts paid while on active duty or paid by the Department of Veterans Affairs (VA), or other related VA programs are not considered as income when determining low-income status. Generally, this means many separating service members may qualify for the WIOA Adult program because it provides priority for low-income individuals, and military earnings are not to be considered income for this purpose.ExclusionsExclusions from Family Income include: Severance pay.Welfare payments (including Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Food Assistance Employment and Training (FAE&T) Program, and Refugee Assistance).Capital gains.Foster child care payments.Any assets drawn down as withdrawals from a bank, an employee exclusive 401(k), the sale of property, a house, or a car.Tax refunds, gifts, loans, lump-sum inheritances, one-time insurance payments, or compensation for injury.Non-cash benefits such as employer paid fringe benefits, food or housing received in lieu of wages, Medicare, Medicaid, Food Stamps, school meals, and housing assistance.Pay or allowances received while on Active Military Duty (38 USC 4213).Pell grants.Education assistance and compensation payments to veterans and other eligible persons under Title 38, USC; Chapter 11, Compensation for Service Connected Disability or Death; Chapter 13, Dependence and Indemnity Compensation for Service Connected Death; Chapter 31, Vocational Rehabilitation; Chapter 34, Veterans' Education Assistance; Chapter 35, War Orphans' and Widows' Educational Assistance; and Chapter 36, Administration of Educational Benefits (38 USC 2013).Allowances, earnings, and payments to individuals participating in programs under the WIOA shall not be considered as income for the purposes of determining eligibility for the WIOA.Earned Income Credit.Educational financial assistance received under Title IV of the Higher Education Act (20 USC 1087).Needs-based scholarships.Adoption subsidies.As a reminder, TEGL 19-16 indicates that exclusions previously allowed for payments of unemployment compensation, child support payments, and old-age survivors insurance benefits from the income calculations for determining if an individual is low-income no longer apply.Please note that the U.S.Department of Labor does not consider individuals on Social Security Disability Income (SSDI) to be considered low income on the basis of that status alone. SSDI payments cannot be excluded when making income-based eligibility determinations. However, individuals receiving SSDI meet the definition of an individual with a disability, which means the individual meets the criteria of an individual with a barrier to employment under WIOA Section. 3(24) and Section 680.320(b) of the WIOA Regulations.For all other sources of income, please refer to the Internal Revenue Service web page to research income inclusions versus exclusions.ReferencesTEGL 26-13 – Impact of the U.S. Supreme Court’s Decision in United States v. Windsor on Eligibility and Services provided under the Workforce Grants administered by the Employment and Training AdministrationTEGL 19-16 – Guidance on Services provided through the Adult and Dislocated Worker programs under the WIOA and the Wagner-Peyser ActPoverty and LLSIL GuidelinesAs a reminder, for determination of eligibility, the WIOA defines the term ‘‘low-income individual’’ as one who qualifies under various criteria, including an individual who received income for a six-month period that does not exceed the higher level of the poverty line or 70 percent of the LLSIL, as identified below.2017 Poverty Guidelines2017 LLSIL GuidelinesFor families larger than six persons, an amount equal to the difference between the six-person and the five-person family income levels should be added to the six-person family income level for each additional person in the family.Effective DatesPoverty Income Guidelines are issued every year in January.70 percent LLSIL is issued every year in June. ................
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