Employees who work under a contractual arrangement must have their

income prorated over a 12 month period.A contractual arrangement

exists if the employee and employer have a written agreement which stipulates, at a minimum, the annual or monthly salary. Individuals who are paid on an hourly or piece work basis will not have their income prorated over a 12 month period.

School teachers and school administrators are contract employees. Since arrangements vary from school district to school district, other school employees other than administrators or teachers may or may not be considered contractual employees. The income of school employees who do not work under a contract will not be annualized. The income of employees who have a contract will not be annualized if the contract does not specify a yearly or a monthly amount. For example, the income of school cafeteria workers who are paid by the hour will not be annualized.