Divide the number of days by 7 (the number of days in a week) to determine the number of weeks (181 ÷ 7 = 25.86 weeks). This method calculates the number of days during the earning period and converts this number to the number of weeks.Įxample: Using the same facts from the example above, calculate the number of days from Jan.
New Number of Weeks MethodĪn alternative method is what Moreland calls the new number of weeks method. To correctly count the number of weeks of earning that make up the YTD amount, you must also count these two weeks in December. The money earned during the last two weeks of December may not be paid until the first week of January. ĮDITOR'S NOTE : Remember that some of the resident's YTD income may include money earned in December of the prior year, which is the case for individuals who are paid every two weeks, rather than twice a month. Multiply that number by 52 weeks per year to arrive at an annualized income of $30,000. Divide the $15,000 YTD income by 26 weeks. To annualize the YTD income, count the number of weeks in the time period worked by the resident (that is, count every Saturday from the start of the year to the end of June). 1 to June 30, and the YTD income earned during that time was $15,000. The sum equals the resident's annualized income.Įxample: Suppose that the resident was paid weekly from Jan. Prorate the result by multiplying that number times 52 (for 52 weeks in the calendar year). Divide the number of weeks by the amount of income earned during that time. Standard Number of Weeks Methodįirst, calculate the number of weeks in the year-to-date time period, as indicated on the resident's employment check. With the help of tax credit expert Elizabeth Moreland, we will examine all four methods, providing examples of how the methods are used, to show you the various alternatives that are open to your tax credit site. But three other methods are also available: the “new number of weeks method,” the “number of days method,” and the “number of pay periods method.”
A standard method for making the calculation-known as the standard number of weeks method-is used for residents of Section 8 sites. To project a resident's annual income using the YTD method, you must start by verifying the amount of income the resident has earned since the beginning of the year. The recently issued Change 2 to HUD Handbook 4350.3 does not address how you, as an owner or manager, calculate annual income by using year-to-date (YTD) income.