1. (a) Before the monthly income is compared to the income eligibility standard, certain deductions are allowed from the monthly gross earnings.

2. (b) These deductions are:

   1. (1)

      1. (A) Work-related deduction, twenty percent (20%).
      2. (B) This deduction is to account for withholding taxes and other mandatory work-related withholdings from gross earnings.
      3. (C) Applicants receive only this deduction; and

   2. (2)

      1. (A) Work incentive deduction.
      2. (B) Recipients who start or continue work while receiving transitional employment assistance (TEA) benefits receive both the twenty percent (20%) work-related deduction and this sixty percent (60%) incentive deduction.
      3. (C) The purpose of the incentive deduction is to encourage recipients to find employment or to increase their earnings while receiving assistance.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “01/04/1999”