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I was just reviewing a file that was sent to HPD for one of the buildings we were called for and I saw the income calculation they used which ended up as something WAY more than we thought was accurate. My understanding of income calculation is basically:
hourly wage x weekly hours x 4= one month gross income
one month income x 12 = gross yearly income
But the one done by HPD (or management, idk who does it) has something that seems way more complex.
All paystubs in that file were added, then divided, then multiplied, then some unknown calculation, and then a final combo of division and multiplication.
I'm sorry for not using specific numbers, I just don't know what the base formula is so I don't know which ones are specifically attached to our income and I'd rather not put that out there. Even our tax returns don't come up with a number that they did here.
With the "new" calculation, are you still inside the bracket? If you get denied, definitely appeal.
Did you see if the formula is in the Marketing Handbook? I know they calculate income four or five different ways and then take the highest amount. Maybe they added a new way!
I believe they add all 6 paystubs, divide it by 6, then multiply it by 52. Or they use your last W2 (whichever is higher). Also they add a small % of your 401k/savings
Edit: I believe 401k/savings calculated is .06%.
I believe they add all 6 paystubs, divide it by 6, then multiply it by 52. Or they use your last W2 (whichever is higher). Also they add a small % of your 401k/savings
Edit: I believe 401k/savings calculated is .06%.
This is correct they don't use W2's since income changes throughout the year, raises, etc.
I believe they add all 6 paystubs, divide it by 6, then multiply it by 52. Or they use your last W2 (whichever is higher). Also they add a small % of your 401k/savings
Edit: I believe 401k/savings calculated is .06%.
Yup! This is it. And I *think* they only add the additional percentage to your income if your assets total over $5000
Also just an FYI for all. Your W2 income isn’t your true gross. Box 1 shows your taxable income only (gross minus pretax).
Your hourly rate x 40 x 4 x 12 is also inaccurate. If you want to calculate your gross it’s hourly rate x 40 (if that is your scheduled work week. Some places are 35) x 52. This also does not take into account any other earnings like OT, bonuses, differentials.
There truly is a lot that go into income calculation.
But the one done by HPD (or management, idk who does it) has something that seems way more complex.
All paystubs in that file were added, then divided, then multiplied, then some unknown calculation, and then a final combo of division and multiplication.
Just looked at my own worksheet and what they did was they first verified if my year to date gross income was accurate. They then took the year to date amount from the last paycheck I provided and divided that by the number of pay period for the last pay cycle (from the last paycheck) to get the average per paycheck. Then they took that amount and multipled by my pay frequency. I get paid biweekly so multiplied by 26 to get the yearly gross income.
Thank you for all your responses. It's helped a lot!
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