Calculating Schedule I Income from the Latest Paystub

Glade now offers a "Latest paystub" calculation method for Schedule I income, so your schedules reflect a client's current income instead of a historical average.

https://www.loom.com/share/f484227f1de0474e9de0ecf2829edd9f

Overview

Schedule I is meant to show a debtor's income as of the filing date. Averaging six months of paystubs — the right approach for the Means Test (Form 122A-1) — can misstate current income when a client's hours or pay rate recently changed.

The Latest paystub method solves this by annualizing a single representative paystub: it takes the gross pay from one stub, multiplies it by the number of pay periods per year, and divides by 12 to get a monthly figure. All earnings and deductions on the stub are converted the same way, so Schedule I line items stay consistent.

Example: A client paid $3,232.61 bi-weekly → $3,232.61 × 26 ÷ 12 = $7,003.99/month gross income.

How It Works

1. Open the income source: In the Income Organizer, open the employment income source you want to calculate.

2. Choose the calculation method: In the calculator, select Latest paystub (it appears as the first option).

3. Pick the paystub: The most recent paystub is used by default. If the latest stub isn't representative — for example, it includes a bonus or reflects short hours — select a different stub instead.

4. Confirm the pay frequency: Choose how often the client is paid (weekly, bi-weekly, semi-monthly, or monthly). The Apply button stays disabled until a frequency is selected, since the calculation depends on it.

5. Review and apply: Check the monthly preview, then apply. The annualized amounts flow through to Schedule I.

Setting a Firm-Wide Default

You can choose which calculation method new employment income sources start with:

1. Go to Settings → Petition settings.

2. Under Default calculation method, select your preferred method and save.

For firms that haven't chosen a different method, Latest paystub is the default for new employment income sources.

Key Details

• Existing income sources are unchanged. Income sources that already have a calculation method keep it — changing the firm default only affects newly added sources.

• The Means Test is not affected. Form 122A-1 continues to use the standard six-month average. This change applies to Schedule I only.

• Pay frequency is required. Glade will not calculate a Latest paystub figure without a pay frequency, so a wrong assumption can never slip into your schedules silently.

• Deductions are annualized too. Every current-period field on the selected stub — earnings and deductions — is converted to a monthly amount using the same formula.

FAQ

Q: What if my client's most recent paystub includes a one-time bonus or unusually low hours?
A: Select an earlier, more representative paystub in the calculator. The calculation uses whichever stub you choose.

Q: Will my existing cases switch to the new method automatically?
A: No. Income sources that already have a calculation method configured keep that method. The new default only applies to income sources you add going forward.

Q: Does this change how the Means Test is calculated?
A: No. The Means Test (Form 122A-1) still uses the six-month average as required. Only Schedule I supports the Latest paystub method.

Q: Which pay frequencies are supported?
A: The calculation multiplies the stub by the number of pay periods per year for the selected frequency — for example, 52 for weekly, 26 for bi-weekly, 24 for semi-monthly, and 12 for monthly — then divides by 12.

Q: Can I still use the other calculation methods?
A: Yes. All existing methods (all paystubs, year-to-date, and bracketing) remain available in the calculator. Latest paystub is simply a new option — and the default for new employment income sources unless your firm chooses otherwise.