603.03 Employment Expense Disregard (EED) SR 23-02 Dated 01/23

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Allow the employment expense disregard (EED) in the benefit and eligibility determination process for OAA and APTD financial assistance only.

The amount of the EED is either:

•       a flat rate of $18.00 per month; or

•       actual expenses if they are more than $18.00 per month.

Use the following chart for individuals claiming actual expenses. The chart lists all of the employment related expenses and the maximum amount that can be allowed.

Allowable Expenses

Maximum Amount Allowed

The maximum is the amount remaining after reimbursement or other payments

Social Security Taxes (FICA)

Use the IRS social security employee tax withholding tables or multiply the gross wage by the applicable percentage.

2023 = 7.65% (15.3% if self-employed) of the first $160,200 of gross annual earned income.

The Medicare portion of the above tax rate is 1.45% (2.9% if self-employed), and is applied to all gross annual earned income.

2022 = 7.65% (15.3% if self-employed) of the first $147,000 of gross annual earned income.

The Medicare portion of the above tax rate is 1.45% (2.9% if self-employed), and is applied to all gross annual earned income.

Federal Withholding Taxes

Refer to the Federal Withholding Tax Table (Circular E).

Allow the amount of federal withholding taxes that corresponds to the number of exemptions the individual is legally entitled to claim.

Railroad Retirement Taxes

Allow the actual amount that is deducted from wages for railroad retirement taxes.

 

Allowable Expenses

Maximum Amount Allowed

Transportation Costs

·         to and from work; and

·         for child care if child care is necessary for employment.

Individual must use the least expensive reasonable means of transportation. Allow $0.21 per mile times the number of miles usually traveled in a month (less any reimbursements) if the individual:

·         Uses their own vehicle; or

·         Rides in another person’s privately owned vehicle.

Allow the amount normally charged to the public if public transportation is used.

Child Care Costs

  

Special Clothing

  

Mandatory Union Dues

  

Mandatory Retirement Contributions

  

Other Mandatory Deductions

  

Other Approved Expenses

  

 

References: He-W 601.03; He-W 654.02; He-W 654.18; RSA 167:3-c,IX; RSA 167:4,I(a); 20 CFR 416.1112(c); 26 USC 3101; 26 USC 3111; 42 USC 1396a(a)