2659 Contract Employees | Medicaid

Georgia Division of Family and Children Services
Medicaid Policy Manual

Policy Title:

Contract Employees

Effective Date:

June 2020

Chapter:

2600

Policy Number:

2659

Previous Policy Number(s):

MT 1

Updated or Reviewed in MT:

MT-60

Requirements

Income received from contractual employment is averaged over a 12-month period if the income is not received on an hourly or piecemeal basis.

Basic Considerations

Contractual employment is defined as working for a period of time less than a year.

Contract employees include truckers, certain school employees and others who contract to work on a renewable annual basis.

The contract renewal process may involve one of the following:

signing a new contract each year
automatic renewal of a contract
implied renewal precluding the use of a written contract

Contract employees are considered compensated for an entire year, even during predetermined non-work periods such as summer breaks or vacations.

Income received by contract employees is considered compensation for a full year, regardless of the frequency of pay stipulated in the terms of the contract.

Procedures

Follow the steps below to determine the eligibility of a contract employee:

Step 1: Determine that the individual is a contract employee.
Step 2: Determine the frequency of pay to calculate the monthly gross income.
Step 3: Multiply the monthly gross income by the number of times received to determine the annual gross income.
Step 4: Divide the annual gross income by twelve to determine the average monthly gross income.
Step 5: Add the contract income to all other monthly income to determine the total gross monthly income.
Step 6: Apply income deductions appropriate to the COA under which eligibility is being determined.

Do not apply the above budgeting procedures in the following situations:

when payments are not made as specified in the contract
a labor dispute interrupts the flow of earnings as specified in the contract.