**PAY FRQUENCY**

When you are multiplying by the borrower’s pay frequency. You must review the Pay frequency column to the left in APPSOLUTE WAGE

X WEEKLY=52 WEEKS

X BI-WEEKLY=26

X SEMI-MONTHLY =24

X MONTHLY = 12

**CURRENT AVERAGE **

STEP 1. TAKE BASE FIGURE IN THE FIXED INCOME SECTION TO THE LEFT

STEP 2. TAKE THE FIGURE IN THE BOX UNDER THE CURRENT PAY COLUMN

STEP 3. MULTIPLY THE CURRENT PAY/BASE BY THE PAY FREQUENCY

STEP 4. DIVIDE BY 12 MONTHS TO DERIVE AT THE MONTHLY INCOME. EXAMPLE: BASE: 900, PAID WEEKLY, SO X52, BECAUSE THE BORROWER WILL BE PAID 52 THROUGHOUT THE YEAR. 900X52= 46,800 THEN TAKE THE ANNUAL 46,800 AND DIVIDE IT BY 12. 46,800/12=$3,900 MONTHLY. CURRENT PAY FORMULA $3,900 = THE CP MONTHLY CALCULATION (CURRENT PAY)

**YTD TO DATE MONTHLY CALCULATION COLUMN**

STEP 1. TAKE YTD # OF MONTHS 1.93

STEP 2. DIVIDE BY THE YTD EARNINGS COLUMN $8100. BOX UNDER THE YTD EARNINGS COLUMN

STEP 3. EQUALS YOUR YTD-MONTHLY CALCULATION COLUMN. AND YOUR CALCULATION METHOD & QUALIFIED INCOME.

**W-2s 12 OR 24 MONTHS.**

*The biggest note here is that YOU MUST use the W-2 and use BOX 5 THE ANNUAL NUMBERS*

Take the full W-2 Amount in Year 1

Take the full W-2 Amount in Year 2

Take the full YTD amount from the PAYSTUB or the YTD earnings field from the WAGE PRODUCT.

Then divide by the number of months