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Department of Human Services Food Stamp Online Policy
Manual Payments/Benefits Excluded In Eligibility
Determination |
Revised: |
21.26 |
VENDOR PAYMENTS
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1240-1-4-.15(26) |
Money payments that are not payable directly to the household but are paid to a third-party for the household’s expenses are vendor payments and are excluded. Exception: Monies that are legally obligated and otherwise payable to the household, but which are diverted by the provider of the payment to a third-party for a household expense are counted as income and are not excluded as vendor payments. The distinction is whether the person or organization making the payment on behalf of a household is using funds that otherwise would have to be paid to a household. These funds include any wages earned by a household member, support and alimony payments which legally must be paid to a household, educational loans on which payment is deferred, grants, scholarships, etc., which are paid to a third-party for living expenses. If any employer, agency, former spouse or other person makes payments for household expenses to a third-party from funds that are not owed to the household, these payments must be excluded as vendor payments. Example:
Wages earned by a
household member that are garnished or diverted by an employer, and paid to a
third-party for a household’s expenses or debt, such as rent, are considered
as income. However, if the
employer pays a household’s rent directly to the landlord in addition to
paying the household its regular wages, exclude this rent payment as a vendor
payment. In addition, if the employer
provides housing to an employee, exclude the value of the housing from the
income determination. Example:
Payments specified by a
court order or other legally binding agreement to go directly to a
third-party, rather than to the HH, and voluntary support payments which are
paid to a third-party, rather than the HH, are excluded as vendor payments,
even if the HH agrees to the arrangement. Example:
Garnishments include all
or part of a cash assistance grant which would normally be provided in money
payment to the household, but which is diverted to third-parties or to a
protective payee for purposes such as managing a household. However, payments by the Department that
would not normally be provided as a money payment to the household, and that
are over and above normal cash assistance grants, are excluded as vendor
payments if they are made directly to a third-party for a household
expense. This rule applies even if
the household has the option of receiving a direct cash payment. |
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