W2 Income
What are the two most commonly used forms of W2 income verification?
Pay stubs and bank statements.
When the business assets are not separate from the personal assets is what type of ownership?
Sole proprietorship
3 months of truck driver settlement summary pages were provided. We confirm the customer is the owner/operator, how is the calculation completed?
Use the bank statement calculator to calculate income, deduct 35% if the customer is an owner operator.
When using a bank statement calculator, what income goes in month 1 deposits?
Most recent bank statement
What is differential pay and how is it calculated?
*Regular earnings when the customer has different hourly rates for 'regular' hours.
*Complete a separate income calculator for each rate
What types of support does Carvana consider a garnishment? List 3
child support, child support fee, arrears child, marital support, alimony, support
If there are too many deposits to fit in the calculator, what is your next step?
Enter all deposits in Google/Excel Sheet and save that to the X-drive so there is a record of the deposits entered.
*This is the only time the sum is acceptable as the entry in the calculator.
For a Social Media Influencer, what do we need to calculate their income?
With the Covid version of the bank statement calculator, two different methods are used to calculate income and the _____ will be shown as the verified income.
Lowest result.
What do we need to be able to complete a commission calculation?
3 months of commission income.
What are the maximum hours for the following pay frequencies?
Weekly, Biweekly, semi-monthly, monthly
In what situation can we accept pay stubs from a business owner?
They own a larger corporation like LLC, C corporations, S Corporations from a legitimate payroll provider.
If a customer is an independent contractor and provides 3 months of bank statements but only 2 months have current income on them, can we proceed?
There must be three months of history. No exceptions.
If a customer has joint bank statements /Plaid, what has to be present to move forward with the bank statement calculation?
Joint bank statement line deposit items must display the customer's name.
What are the offer letter requirements?
Finish this phrase: When a customer is salaried, or their pay stubs show a consistent gross regular pay but exclude their hours worked or their hourly rate
When a customer is salaried, or their pay stubs show a consistent gross regular pay but exclude their hours worked or their hourly rate,
* use (1) under 'hours this pay period' and the exact salaried amount under the hourly wage.
If the business is owned by more than one person what is the next step we should take?
If the Business License/Articles of Incorporation does not show the percentage owned by each person, request the Tax Form 1040 Schedule K.
When the customer is an independent contractor and no taxes are taken out of their check, what must we use in our calculation?
Expenses must be used in the calculation.
Finish this statement: Once the Plaid Transaction Report is used for income verification, _________
you must download and save it to the Customer page in Admin, or to the x-drive for record keeping.
Name 3 Legitimate payroll providers that can be used if the customer owns a larger corporation like LLC, C corporations, S Corporations and gets paid by check.
1. WorkDay
2. ADP
3. QuickBooks
4. Paychex
5. Paylocity
6. Paycor
7. Gusto
If the customer's gross salary pay varies between the two pay stubs What do we do?
Submit an exception ticket to complete a manual income calculation.
What types cannot be included in a business income calculation when the customer provides personal bank statements?
Square Inc. Deposits/Credits and Zelle, Venmo, Chase Quickpay as used for business are only acceptable on business bank statements.
For realtor income what do we need to complete the calculation and what type of calculation is needed?
We need: Real Estate license and three months of commission break down statements.
Use the commission statements to calculate income using the bank statement calculator.
If the customer has multiple sources of income on the bank statement can we use both sources on the same calculation?
No; When the customer has more than one source of income, create separate income calculations for each source of income.
Customer is a truck driver (W2). What do we need to calculate the income and how do we calculate the customer's income?
If the customer is W2 and we are unable to calculate using gross income (as is the case during COVID), confirm we have the two most consecutive and recent paystubs, and submit a manual exception to take an average of the two paystubs or request three months of bank statements or driver's settlements.