State of Wisconsin Release 09-02 June 26, 2009 |
3.5.1.2 Reasonable Compensation
7 CFR Code of Federal Regulations 273.1(b)(3)
A boarder is anyone who resides with a household and:
Pays reasonable compensation to the household for lodging and meals and,
Is in the food unit from which s/he purchases his/her meals and,
The food unit's primary person asks that s/he be included.
A boarder group includes all the persons in a household who are included in the same payment for meals. This applies whether each person actually makes part of the payment or one or more persons makes the payment on their behalf. Include spouses and minor someone less than 18 years old who is under the parental control of an adult food unit memberparental control an adult providing parental control acts as a parent would toward the minor child. A minor child is considered under parental control if the child is financially or otherwise dependent on a member of the household. Foster care providers do not meet the parental control definition. of an adult a person who is 18 years old or older food unit memberfood unit member children of a boarder in the same boarder group, even if they claim they are making separate payments. Boarders are not eligible to participate as their own food unit.
Children and parents living together are not boarders if the child a person's biological, step, or adopted son or daughter, regardless of age. or parent a person's biological, step, or adoptive mother or father regardless of age. Parenthood doesn't have to be verified is paying board to the other.
A spouse A person recognized by Wisconsin law as another person's legal husband or wife. Wisconsin does not recognize common law marriage. who lives with a spouse and pays board to his/her spouse is not a boarder.
A sibling brother, sister, half-brother, half-sister, stepbrother, stepsister, and siblings related through adoption who lives with a sibling and pays board to that sibling is not a boarder.
Reasonable compensation means the person pays enough money for meals to qualify as a boarder.
Compute reasonable compensation based on the number of meals a day the person pays for. A boarder group who pays for more than 2 meals a day pays reasonable compensation when they pay an amount that equals or exceeds the Allotment Maximum. The Allotment Maximum is based on the size of the boarder group.
A boarder group who pays for 2 meals or less a day pays reasonable compensation when they pay an amount that equals or exceeds 2/3 of the allotment maximum for the size of the boarder group.
Persons paying less than reasonable compensation are not boarders. Count income and assets of people who are paying less than reasonable compensation. Do not count a boarder's income and assets unless s/he is a food unit member.
This page last updated in Release Number: 07-02
Release Date: 07/10/07
Effective Date: 07/10/07