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Expected to Work/Barriers to Full Employment Policy & Procedures

Published Date: April 25, 2012
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11 Income

Earnings in Kind

Earnings in kind – that is, goods and services received in payment for employment are considered employment income.

A single parent with two children manages an apartment building. The rent on her suite is $600. She does not get a salary. Instead, her rent is reduced to $200 a month, including utilities. This means, she is earning $400 a month in kind. The worker instructs the client to report earnings of $400 through her next monthly reporting. The Worker enters the $400 earnings in kind under Income Code 4101 and reflects the client’s actual shelter in LISA as $600. If the client still has remaining rent expenses, core shelter is issued.

A self-employed person who is paid in kind does not get the earnings exemption. However, this person must include the value of payment in the form of goods or services as part of gross income.