The worker prorates income paid on a contractual basis. The worker prorates the income over the number of months covered under the contract, even if the client is paid in fewer months than the contract covers.
For example, if a teacher's contract is for 12 months but s/he is paid over 9 months, the income is prorated over the 12 month period.
Income received intermittently, such as farm income, is prorated over the period it is intended to cover if the income is expected to continue. A child's temporary or seasonal earned income is treated as contractual income (see 468 NAC 2-016 for treatment of student income).
The worker must notify the client on a Notice of Action that income is being treated as contractual income and how it is budgeted.
(12/27/97)