This section describes the Wage Supplementation program. When an individual receiving Temporary Assistance participates in Wage Supplementation, the household's benefits are diverted to an employer as an employment subsidy.
The regulatory basis for Wage Supplementation is 13 CSR 40-2.320.
For further assistance refer to the Case Management Section-Wage Supplementation.
Participants must receive Temporary Assistance to qualify for participation in Wage Supplementation. If the Temporary Assistance case will close before the supplemented employment begins, the individual is not eligible to participate in Wage Supplementation.
Employment in Wage Supplementation does not affect the cash grant in a case where the participant is also a caretaker payee (C) on another Temporary Assistance case.
The diverted benefits include the Temporary Assistance grant. The diversion amount equals the state averaged amount of benefits. The maximum diversion period per individual is 12 months. The 12 months do not have to be consecutive. When determining the 12 months of diversion include participation months in all Wage Supplementation programs. This rule applies to participation in Wage Supplementation, the 12 Month Program (21D) and the 21st Century Program (21A-available in Jackson County only).
Temporary Assistance recipients while participating in a Wage Supplementation program will not expend months against their 60 month lifetime limit. Participants who enter Wage Supplementation will stop the 60 month count beginning with the first month the cash grant is diverted to the employer. The months shall not count towards the 60 month lifetime limit during the entire wage supplemented period. This rule applies to all Wage Supplementation programs, the 12 Month Program (21D), and the 21st Century Program (21A-available in Jackson County only).
Repayment of an overpayment by means of recoupment cannot continue when a case enters wage supplementation. Prior to placing in Wage Supplementation, the caseworker/case manager will check for Temporary Assistance overpayments. Overpayments must be repaid in full, or have a signed agreement to repay monthly, before any member of the household can participate in a wage supplemented job. Discuss repayment arrangements with the potential wage supplement employee. Refusal to make arrangements for the overpayment makes all members of the household ineligible for placement in a supplemented job. After the supplemented placement, update the claims system to reflect the repayment agreement. Removal of the recoupment from the IMU5 system must be accomplished before the case manager enters the Wage Supplementation component code (21D).
Complete pending budget adjustments before an individual is placed in wage supplemented employment. Disregard earnings received from Wage Supplementation employment and all child support in determining Temporary Assistance eligibility and grant amount. Budget all other earned or unearned income. No notice of adverse action is required to begin wage supplementation unless the grant amount is reduced for reasons other than wage supplemented employment.
The Wage Supplement component code (21D) must be entered by the case manager before payroll closing to ensure diversion of the benefits for the following month. After 21D is entered, the system freezes the grant amount.
Entry of the component code 21D updates ICAS, IMU5, and IPAR to show case status as WGSUP3. Entry of 21D updates IPAY and FPAY to show Payment Status as WS3.
The Temporary Assistance frozen grant amount cannot be adjusted for any reason until the Wage Supplementation component 21D is ended. The frozen amount will be stored separately and may not be reflected on ICAS/IPAY. When a case adjustment changes the Temporary Assistance grant amount, ICAS/IPAY will continue to report the adjusted amounts. Retroactive and deficiency payments cannot be requested once Wage Supplementation has started.
During the Wage Supplemented period, budget adjustments must be completed on active cases to reflect changes in circumstances. Notices of Adverse Action (IM-80) will be sent while the individual is in Wage Supplementation. Add a note to the IM-80 explaining the grant amount is the amount the participant would receive if they were no longer in a wage supplemented job. Appropriate notices will be sent when Wage Supplementation ends to inform the participant of the status of both of the Temporary Assistance case.
Wage supplementation cases may be closed only if participation in wage supplementation ends. (NOTE: Situations such as the employed absent parent returning to the home or the last eligible child leaving the home does not determine a wage supplementation case ineligible.) Wage supplemented cases do not become ineligible due to child support income exceeding the grant amount. When child support exceeds the grant amount, the Division of Child Support Enforcement will pay the amount exceeding the grant amount to the family. The amount exceeding the grant amount will not be used in the Temporary Assistance budget. When employment ends, the wage supplementation component (21D) must be closed in JCAT before the Temporary Assistance case can be closed.
Use normal procedures for removing and adding individuals to cases in wage supplementation. A notice of adverse action is required when an individual leaves the home to inform them their Medicaid coverage will end.
When component 21D ends, due to the expiration of the twelve months time limit and the participant is still working, review eligibility criteria and budget the earned income to determine continued eligibility. If the case is no longer cash eligible, authorize Transitional Medicaid (TM) unless:
Transitional medicaid eligibility begins with the first month after wage supplementation ends. Notice of adverse action is required prior to placing the case on TM. This action must be completed by the payroll closing date in the month that wage supplementation ends.
If participation ends for any other reason, reinstate the case to the “frozen” grant amount and immediately complete a review of eligibility on all factors, using normal criteria. If reduction or termination of assistance is indicated, a notice of adverse action is required prior to taking action. NOTE: If a grant diversion is issued to an employer for a month in which the individual was not working and will not receive wages, the employer is required to return the diversion amount to FSD. Issue a retroactive payment if a diversion payment to the employer is pulled or returned and the individual is eligible for a cash grant.