Vendor Payments

Money that is paid directly to a third party for a household expense is considered a vendor payment.

Non-countable Vendor Payments

Whenever a person, organization or former spouse external to the household, uses its own money to make a direct payment to the household’s creditors or to a person or organization providing a service to the household, such as landlord or utility company, it is considered a non-countable vendor payment.

Countable Vendor Payments

Money that is legally obligated and otherwise payable to the household, but is diverted to a third party for services provided to the household, is considered a countable vendor payment.

The distinction between countable and non-countable is based on whether or not the person or organization providing the money on behalf of the household is using funds that are legally obligated to the household. Funds payable to a household include:

wages earned by a household member and owed to the household
a Public Assistance (PA) grant to which the household is legally entitled
support payments in amounts that are legally obligated to the household and/or
other government benefits such as Veteran’s benefits, State or Local pensions, etc.

If an employer, organization or former spouse who owes these funds to a household diverts them to a third party to pay for a household expense, the payments shall be counted as income to the household.

Important: Payments that are made to a third party that are not required by a court order or any other legally binding agreement are non-countable vendor payments.

Verifying Vendor Payments

Example 1

Tayika Plympton is responsible for rent of $800 per month. Tayika’s aunt has submitted a letter stating that she is paying Tayika’s rent directly to the landlord.

This vendor payment is considered non-countable. Tayika’s aunt is using thier own funds to pay Tayika’s rent directly to the landlord.

Example 2

Annie Warren receives gross weekly wages of $800. Their employer received a court order to garnish their wages for rent.

This vendor payment is countable because Annie’s wages are legally obligated and otherwise payable to her, but they have been diverted by her employer for a household expense. Annie would receive the full credit for her rent in the Shelter Expense window in BEACON. Additionally, Annie’s wages must be entered in the Earned Income window accordingly.

Example 3

Jose Rivera submits a child support court order verifying that Carolina must pay $600 per month for child support. Carolina asked their employer to send $300 of the $600 payment directly to Jose’s landlord to go towards their rent of $1000 per month.

Carolina agreed to divert a portion of the child support payment to the landlord. Although Carolina is making a vendor payment, the court order presented verifies that the full amount of $600 is legally owed to Jose and must be entered as countable child support income. Jose would receive the full credit of $ 1000 for rent in the Shelter Expense window in BEACON.

Example 4

Antoinette Hines submits a court order that states they have been awarded $800 per month in alimony. Their former spouse submits an additional payment of $400 to the bank for their mortgage

The $800 alimony payment is countable unearned income. The $400 mortgage payment to the bank is a non-countable vendor payment because it is made directly to the third party and it is not otherwise payable to the household.

Example 5

Maria Rodriguez submits a statement from their ex-partner, Joe, verifying that they provide $1000 per month for Maria’s rent directly to the landlord. Maria also reports that there is not a court order for child support for their son, Jaime.

Joe and Maria do no not have a court order for child support. The $1000 must be entered as a non-countable vendor payment because although, Joe is the absent parent, they are using their own funds and does not have a legal obligation to provide a vendor payment on Maria’s behalf.

Example 6

Debbie-Ann Harris is responsible for the Heating/Cooling of their apartment. They submits a statement from Patricia Venza that states Patricia is paying Debbie-Ann’s $500 per month gas heat bill directly to National Grid. Patricia makes the payments voluntarily and is not responsible to make any payments to or for Debbi-Ann.

The $500 amount that Patricia is paying on behalf of Debbie-Ann directly to the utility company is a non-countable vendor payment. Since the amount that Patricia is paying on Debbie-Ann’s behalf is less than the Heating/Cooling SUA amount, the $500 amount would be entered in the Other Income window in BEACON as a third party non-countable vendor payment. Debbie-Ann would receive the full Heating/Cooling SUA under the Standard Utility Allowance window in BEACON.