CalWORKs Policy - Department of Public Social Services

CW 44-340.1 -
Underpayment-
Definition
What is an underpayment?
An underpayment occurs when the
applicant/participant receives less than the amount
to which he/she is entitled in a given month(s). The
applicant’s/participant’s failure to apply for or
request aid (i.e., mandatory included person, etc.)
does not create an underpayment.
EXAMPLE: If information reported on the QR 7
results in an increase of cash aid and the grant
cannot be increased by the first day of the month of
the next QR Payment Quarter, an underpayment
exists. A supplemental should be issued for that
month and the cash aid increased for the remaining
month of that quarter provided the participant
reported the change timely.
When is an underpayment not established?
See OPS Section 23-110.7 -Underpayments for
more information.
What action is taken when a participant later
provides verification of actual income received
that differs from the reasonably anticipated used
at the time the benefits were calculated?
No under payment will be established when the
actual income received is less than what was
reasonably anticipated during the QR Payment
Quarter and the participant did not voluntarily report
the change in circumstances or a decrease of
income during the QR Payment Quarter.
Are mid-quarter supplemental payments
considered an underpayment?
No, a mid-quarter supplemental payment resulting
from a voluntary mid-quarter report that was
correctly computed based on a recalculation of
reasonably anticipated income and/or other
changed AU circumstances shall not be considered
an underpayment and is not subject to an
overpayment offset.