The Treatment of Certain Payments Made to Clients Participating in Employment and Training Services Reimbursements

Payments intended to reimburse education or training-related costs for specific goods or services are noncountable. These payments cannot be in addition to any other payments intended to reimburse the same expense; any duplicate payments or reimbursements exceeding expenses are counted as income.

Although not limited to these programs, these reimbursements are often paid by the SNAP Path to Work program, the Employment Services Program (ESP), and the Workforce Innovation and Opportunity Act (WIOA) program.

Reimbursed expenses for education or employment and training may include, but are not limited to:

  • dependent care costs;
  • transportation;
  • other expenses related to work, training, or education. (e.g. uniforms, personal safety items, books, training materials, or other necessary equipment).

These payments must not be intended to reimburse the cost of meals away from home.

ExampleExample

Marcus (he/him) is interning at The Center for Self-Reliance through the WIOA program. He provides a letter stating that he receives a reimbursement check to cover his monthly travel expenses during his internship.

You must disregard this payment in full. The client has verified that he is a part of an employment and training program and is receiving a noncountable reimbursement for travel expenses. This record must be added in BEACON as a noncountable unearned income source.

Training Stipends

Training stipends include but are not limited to payments from the Department of Career Services (DCS), Massachusetts Rehabilitation Commission (MRC), and non-profit organizations.

It is not always clear if someone is receiving a stipend or wages. If a client is participating in a training program and receiving payments, you must ask if those payments are a stipend or wages.

Verification

To verify payments are a stipend, clients must provide a letter from the training program they are attending confirming that the payment is a stipend. The letter must contain the following details:

  • Training session start and end date;
  • Stipend amount and frequency; and  
  • Signature and contact information of program representative who completed the letter.

Important: If the client states that they are expected to start a new employment upon the completion of the training, you must remind them of their reporting requirements. Not all persons in training receive stipends. Some receive regular wages. Training stipends must not be confused with wages received for job training.

Steps for Creating a User-Entered VC-1 for Training Stipend

To issue a User-Entered VC-1 for Training Stipend:

  1. Go to the Verification tab
  2. Click on + New
  3. The User Entered Verification page will appear
  4. In the Element section, select Unearned Income
  5. In the Value section, select Training Stipend
  6. In the Program(s) section, select Mandatory
  7. Click Save.  Once saved, the verification item will be completed and ready to be generated into the VC-1.

Example 1Example 1

Susan (she/her) is receiving job training through the MassHire Department of Career Services (DCS). Susan states she receives a training stipend totaling $175 per month. She provides a letter from DCS which confirms that she receives the stipend as a training participant.  

Susan has verified that she is a part of an E&T program and is receiving a noncountable stipend. You must enter this payment record as a noncountable Training Stipend in the Other Income page.

Example 2Example 2

Carl (he/him) is participating in a career development program through the Salvation Army. This is not SNAP Path to Work or Pathways to Work (TAFDC) contracted program. Carl provides paystubs and tells the worker that the paystubs are for a stipend of $125 per week for participating in the training. However, the paystubs do not indicate whether the income is, in fact, a stipend. He stated that if he successfully completes the training, he will be hired by Salvation Army and paid regular wages.

You must send a mandatory VC-1 requesting a letter from Salvation Army confirming whether or not this payment is a training stipend.

Once verification of the stipend is received, you must enter this payment record as a noncountable Training Stipend in the Other Income page.

However, if Carl successfully completes the training and is hired by the Salvation Army, the wages he receives from his new employment will be countable. You must remind him of his reporting requirements.

Note: These procedures apply to SNAP, TAFDC, and EAEDC.

Last Update:  January 4, 2024