Earned Income Workshop (Barbara)
Earned Income Workshop Quiz
Test your knowledge and understanding of earned income regulations and assessments with our comprehensive quiz tailored for professionals in the field. This quiz is designed to challenge your skills and ensure you are up-to-date with the latest practices.
You'll encounter a variety of real-world scenarios and questions, including:
- Identifying appropriate action based on earned income changes.
- Understanding income averaging methods.
- Assessing how bonus payments affect housing benefit calculations.
Maria is currently receiving Housing Benefit based on a passported DWP benefit (no HB run on applies). Her circumstances change on the 11 April 16 when she starts work. She sends us her first wage slip dated 29 April 16 on the 10 May 2016. She has told us she works 21 hours a week and hasn’t told us her pay cycle. She provides us with 2 more wage slips dated 31 May 2016 and 30 June 2016. What date do we start her EI?
11 April 16 the day she started work To take effect from the 18th April (the following Monday)
29 April 16 the day she received her first pay
1 April 16 as she is paid monthly
Maria is paid on the 29/04/16, 31/05/16 and 30/06/16. What is Maria's pay cycle?
Monthly
4 Weekly
Monthly with an extra paid week every few months
Maria's pay is as follows: Pay date 29 April 16 Gross £630 Tax £75 NI £24, Pay date 31 May 16 Gross £910 Tax £140 and NI of £41, Pay date 30 Jun 16 Gross £910 Tax £140 NI of £41. There is no other deductions from her gross pay. What is Maria's average net pay and from what date?
From 29 April 2016: Gross Pay £630 + £ 910 + £ 910 = £2450 / 3 = £816.67 NI £24 + 41 +41= £ 106 / 3 = £35.33pm Tax £75 + £140 + £140 = £355 / 3 = £118.33 Gross – Tax- NI = £663.01pm (payslips entered into the payslip facility on iWorld)
From 11 April 2016: Gross Pay £630 +£ 910 +£ 910 = £2450 / 3 = £816.67pm NI £24 + 41 +41= £ 106 / 3 = £35.33pm Tax £75 + £140 + £140 = £355 / 3 = £118.33 pm Gross – Tax - NI = Net 663.01pm (payslip detailed entered into the payslip facility on iWorld)
From 11 April 2016 to 30 April 2016 (20 days) Gross £630 / 20 days = £31.50 x 7 = Gross pay £220.50pw, NI £24 / 20 days = £1.20 x 7 = NI £ 8.80pw Tax £75 / 20 days = Tax £3.75 x 7 = £26.25pw. The Average weekly wage is Gross – NI – Tax = Net £ £185.45pw (manually worked out, because the payslip facility on iWorld can only calculate whole period). From 1 may 2016 ongoing: Gross Pay £ 910 +£ 910 = £1820 / 2 = £910pm. NI £41 +41= £ 82 / 2 = £41pm. Tax £140 + £140 = £280 / 2 = £140pm Gross - Tax - NI = Net £729pm (payslips entered onto the payslip facility on iWorld).
Sam sends in 5 weekly wage slips on the 5th August 16 with a covering letter explaining his current income. The wage slips Sam provided are dated 3, 10, 17, 24 and 31 July 2016. Sam has told us that his wages decreased on the 2 May 16 because his employer has reduced his hours permanently. Sam hasn’t told us why he delayed in telling us of the wage decrease. The wage slip Sam provided shows a decrease to the EI we are currently using in Sam’s HB assessment. What date do we reassess the new EI from?
5th August 16, the date we receive the information.
2 May 16 with the notified start date of 5th August 16 so that the new income takes effect on Monday following the 5th of August.
2 May 16
Maggie has just moved into the borough in privately rented accommodation and made a claim for HB. She provides us with 4 standard regular consecutive weekly payslips in August 2016 which shows no variance in her pay, the YTD figure on the latest payslip confirms this. We have all the other information we need to assess the claim. What do you do?
Work out HB on these 4 wage slips, because you can see that her wages do not vary and 4 wages slips is enough to gain a fair average.
Pay the claim on account then suspend the claim and ask for one for 1 more wage slip.
Work out HB based on account on 4 wage slips and then send out for the 5th wage slip.
Work out HB on these 4 wage slip and make a note on iWorld explaining why you have only used 4 wage slips to gain an average
Mary works for a bank and got an annual bonus (April 2015 – March 16) she provides this in her in May 2016 pay slip which shows the bonus paid. Mary also tells us that this is a regular annual bonus. How do you assess the bonus?
Recalculate the EI back to April 15 and add in the bonus and make a note on iWorld as to why you have done this.
Ask for June wage slip then average the May and June income for the next period including the bonus.
Set up a 2nd EI on iWorld for the period April 2015 to Mar 16 using AW as the pay frequency and enter the bonus amount here using notional Tax and NI.
Set up a 2nd EI on iWorld (with the description annual bonus) for the period April 2015 to Mar 16 using AW as the pay frequency and enter the bonus amount here using notional Tax and NI. Set up a notional 2nd EI (with description annual bonus) for the period April 16 to March 17 and put a note on iworld explaining that Mary has an annual bonus and a notional figure has been use for the future period April17 to March 17. Set a diary date for April 17 to ask for details of the bonus for the financial year 16/17
Bunmi has just started work on a zero hour’s contract working for Sports Indirect. She has told us her working hours change weekly and her wages fluctuate significantly each month when she gets paid. How do you get an average to assess her earned income?
Don’t pay. It’s up to the claimant to provide proof.
Get her to provide her Contract of Employment and take it from there.
Telephone her and ask for estimate of pay and hours and pay HB for a month on account based on this information. Send a payment on account letter asking for the information you need to make a decision and bear in mind the time frame of the respond date. Diary date and re-calc when information is available. Make a clear and full notepad on iWorld to explain your decision.
Bunmi has now worked for at Sports Indirect for 11 months and sends in her most recent wage slip, asking us to reassess her HB claim. The latest wage slip is significantly lower than the income we have currently assessed her HB on. What do you do?
Suspend claim until you get more pay-slips.
Call Bunmi and ask her why her wages have gone down, the date of the decrease and if this is likely to continue. Make a decision based on the information to either suspend the claim and wait for more information or to reassess on the payslip she has given us and ask her for more future wage slips to get a fair average. Make a clear and full notepad on iWorld to explain your decision.
Don’t re-assess. Write out for more pay-slips
Re-assess on latest pay-slip if it looks reasonable taking into account year to date. Ask for more pay-slips and re-assess again.
Darren has told us he started working for Metroland bank on the 1 Jun 16. He works 21 hrs a week for Metroland and will be paid monthly. Darren won’t see his first wages until 30 Jun 16. He has told us that his old job ended on the 27 May 16 and he has been paid up to the end of May 16. When you check iWorld you see that the income used in his HB assessment is based on EI from his previous job. His new income is expected to be higher than his old income. What would you do and what date would you start the new income?
Carry on with old wages.
Suspend claim and await the new pay-slips and start the new income from the Monday after the last piece of information received.
Call Darren and enquire about his new employment. Make a decision based on the information he has given you during the phone call to either suspend the claim and wait for more information or reassess the claim based on the information he has given you during the call pending proof being sent to us. You will send a RFI/email confirming the information you agreed upon during the telephone conversation. Reassesses the claim when this information has been received. His new income will start on the 1 Jun 2016.
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