Supplemental Payments Manual

0730.000.00 Overhead Expenses for SP-Only and SSI-SP Recipients

Depending upon the source of income, certain “overhead” expenses may exist. Budget these expenses on an as-paid basis. In no case may the overhead expenses of producing the income from a given source exceed the income from that source. When the income is from self-employment, subtract the following Overhead Expenses from the Gross Income to arrive at the Net Gross Income.

  1. BOARDERS – Food – $37 for each boarder.
  2. SALES – Cost of operation of vehicle (at the state employee reimbursement rate per mile), cost of supplies (as-paid).
  3. JOB RELATED COSTS – (For the person who must furnish his own tools, equipment, transportation, etc. ON the job.) Cost of tools equipment repairs and replacement, supplies, transportation on the job at the state employee reimbursement rate per mile but NOT between home and the place of employment (as-paid).
  4. FARM INCOME – Cost of feed, seed, fertilizers, tools, equipment repairs and replacement, labor materials, supplies or stock of goods, rental or ownership costs (as-paid).NOTE: To determine the gross cash income received from farming, refer to the procedures outlined in December 1973 Manual, Cash and Securities.
  5. BUSINESS INCOME – Costs of tools, equipment repair and replacement, labor, cost of operation of equipment, purchase of materials, supplies or stock of goods, rental or ownership costs and utilities on separate business establishment, sub-contracting cost (as-paid).
  6. INCOME PRODUCING PROPERTY – Cost of ownership (mortgage or contract payment, taxes, insurance, repairs) utilities, labor supplies (as-paid).
  7. BABYSITTING INCOME – If meals are provided for a child(ren) cared for in the claimant’s home, use the figure below as an overhead expense of producing the income.1 – 20 meals per month ———— $ 0
    21 – 40 meals per month ———— 12
    41 – 80 meals per month ———— 24
    81 or more meals per month ——— 37