Temporary Assistance/Case Management Manual

0275.020.10.20 Self Employment

IM-37 June 17, 2011

Self-employment includes jobs paid by commission such as realtors and automobile sales.  The hours worked for self-employment are calculated by using gross income less business expenses at least once every six months. The recipient calculates his/her gross income and business expenses as he/she would need to for tax purposes.

NOTE:  Business expenses include: painter’s supplies, gas to and from the worksite, food for children at in-home daycare, etc.

This income and expense documentation is reviewed for accuracy by the MWA case manager and can include:

  • bank deposit slips,
  • tax forms, and
  • customer receipts.

A countable hour is based on the federal minimum wage calculation which takes the monthly amount of income divided by federal minimum wage divided by 4.3.

After documentation is obtained, enter the monthly wage under the Self-Employment service on the Participation Hours Verification or the Mass Participation Hours Verification screen in the MWA System and place the documentation in the paper file.

The MWA System automatically calculates the self-employment weekly hours based on the entry of the monthly amount for the next six months. (4.333 is the average number of weeks per month, the MWA System is programmed to calculate 4.3.) Federal minimum wage is currently $7.25 effective July 24, 2009. (Refer to Section 0275.020.05 Projection of Hours.)

Example:

  • Mary receives $200 a week for babysitting children in her home. $200 x 4.3 = $860 is entered for “Monthly Amount” on the Participation Hours Verification or the Mass Participation Hours Verification screen in the MWA System.MWA System calculation: $860 / $7.25 / 4.3 = 28 weekly hours for the next six months.
  • Bob received $1,000 last month for his lawn care business. $1,000 is entered for “Monthly Amount” on the Participation Hours Verification or the Mass Participation Hours Verification screen in the MWA System.MWA System calculation: $1,000 / $7.25 / 4.3 = 32 weekly hours for the next six months.NOTE:  The MWA System only displays the hours for one week into the future.  The hours do not need to be updated weekly, as they are still projected for six months.