Question about Gross Pay

[hardworkpaysoff]

I applied for an auto loan through DCU back in June and was approved. I told them my annual gross income was $34,000. They asked if that includes overtime, I said yes, and they wanted the amount of money I make without the overtime. That number was $27,000. They approved me for a loan of $13,500... exactly 50% of my non-overtime income, and exactly the percentage a rep I spoke to previously said I would be approved for through the first time buyer program.

The gross incomes I gave them with/without overtime pay ended up being wrong, as the $27,000 number I submitted actually included additional overtime that I didn't initially realize.

I work 50 hours a week. I am contracted at 50 hours a week. As part of my position in management I am required to work 50 hours a week. My annual "salary" is $28,600 at 50 hours a week, although I still clock in and out and am payed on an hourly basis. Including my required overtime, my income is $28,600 yearly. If I exlcude the overtime I am required to work my income is only $20,800.

I'm going to fill out a new application soon as the car I ordered is to be delivered soon. Why will DCU not consider my overtime income as part of my annual gross income, even if it is required I work it? When I initially took the position I am in, in plain writing it says I make $28,600 yearly. My overtime is not some here some there, it is every single week. What should I tell DCU when they ask if any of my income comes from overtime?

[bahbahd]

At any point would you not be required to work 50 hours a week? The additional overtime is not being included right now as it is not regular, avail-every-week income. I would say your regular 50 you are required to work is your base, regular income. They are seeing the additional overtime as uncertain income that could end at any time if you decide not to work additional hours or your employer stops offering it - need goes away, new staff hired to perform the work at lower cost, etc. I would say you have supplied them the correct income amount as it represents what you are required to work, your regular pay.

[sccredit]

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@bahbahd wrote:

At any point would you not be required to work 50 hours a week? The additional overtime is not being included right now as it is not regular, avail-every-week income. I would say your regular 50 you are required to work is your base, regular income. They are seeing the additional overtime as uncertain income that could end at any time if you decide not to work additional hours or your employer stops offering it - need goes away, new staff hired to perform the work at lower cost, etc. I would say you have supplied them the correct income amount as it represents what you are required to work, your regular pay.

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I agree with this.  If your agreement requires you to work 50 hours than the 50 hour Gross Pay is your base.

[hardworkpaysoff]

Okay, I feel a lot better.

In response to your question, no, I am required to (at minimum) work 50 hours per week. There are about ~70 other people in my company who work in the same position as me, and they are also required to (at minimum) work 50 hours per week.

This is good. So my annual gross income working 50 hours per week is $28,600/year... meaning this is the number I should report when they ask income. What do I do when they ask if this includes income from overtime work? Should I explain that although I work "overtime", meaning, hours over 40 per week, this is actually scheduled overtime and I work it every single week? Or how do I explain that this overtime is not "overtime" by dictionary definition, and that it is regular, guaranteed pay?

[Simply827]

I would leave things as they are right now. If they ask more questions and decide to use your 40hr/week pay, then you'll lose 3k off your approval. Whereas if they use your 50hr/week pay you only stand to gain an additional $800 for your approval.

Don't poke the bear.

[bahbahd]

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@hardworkpaysoff wrote:

Okay, I feel a lot better.

In response to your question, no, I am required to (at minimum) work 50 hours per week. There are about ~70 other people in my company who work in the same position as me, and they are also required to (at minimum) work 50 hours per week.

This is good. So my annual gross income working 50 hours per week is $28,600/year... meaning this is the number I should report when they ask income. What do I do when they ask if this includes income from overtime work? Should I explain that although I work "overtime", meaning, hours over 40 per week, this is actually scheduled overtime and I work it every single week? Or how do I explain that this overtime is not "overtime" by dictionary definition, and that it is regular, guaranteed pay?

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You are overthinking a bit much here. I would not explain anything unless asked, which you doubtfully will. Your income is $28k a year for your standard work week. Just say that, "I make $X in a standard work week." If for some reason it does come up, 50 hours is your standard work week - the same as it is for everyone else in your company. That is all you would ever have to say.  

[azguy13]

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@bahbahd wrote:

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@hardworkpaysoff wrote:

Okay, I feel a lot better.

In response to your question, no, I am required to (at minimum) work 50 hours per week. There are about ~70 other people in my company who work in the same position as me, and they are also required to (at minimum) work 50 hours per week.

This is good. So my annual gross income working 50 hours per week is $28,600/year... meaning this is the number I should report when they ask income. What do I do when they ask if this includes income from overtime work? Should I explain that although I work "overtime", meaning, hours over 40 per week, this is actually scheduled overtime and I work it every single week? Or how do I explain that this overtime is not "overtime" by dictionary definition, and that it is regular, guaranteed pay?

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You are overthinking a bit much here. I would not explain anything unless asked, which you doubtfully will. Your income is $28k a year for your standard work week. Just say that, "I make $X in a standard work week." If for some reason it does come up, 50 hours is your standard work week - the same as it is for everyone else in your company. That is all you would ever have to say.  

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I agree completely. I asked a friend of a friend a couple years ago about this who worked for Amex. I honestly forgot what his position was, but he told me to report my annual income without overtime as the amount of time I am expected to work. For example, I work 84 hour work weeks so I do not count the extra 44 hours as overtime since this is expected of me. However, my paystub does not reflect those 44 hours as overtime. 

[hardworkpaysoff]

I agree I'm overthinking it a bit.

So when they ask my gross annual income, I say $28,600. And when they ask if that has overtime I say no?

[bahbahd]

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@hardworkpaysoff wrote:

I agree I'm overthinking it a bit.

So when they ask my gross annual income, I say $28,600. And when they ask if that has overtime I say no?

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You say "No. That is my income from my regular work week."