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If the self-employment activity does not incur expenses no deduction is allowed for costs of doing business.

When the family has more than one (1) self-employment business, the monthly income is calculated separately for each business. Income and expenses generated during times the business is operating, even if the parent is not participating in the activity, are included when determining the parent’s countable self-employed monthly income. However, only the time the parent is engaged in the activity is used for determining their child care need.

For example: A parent owns a clothing store that includes a store front and an online store. The parent is engaged in the self- employment activity Monday through Friday between the hours of 10:00am-8:00pm. The store front is also open Saturday and Sunday, and the online store is available to customers 24 hours per day/7 days per week.

The business income and expenses used include all times the stores are open, and goods sold. The care to be authorized would only cover the days and hours the parent is actively engaged in the business activity.

Income and expenses do not off-set from one (1) business to another. Each self-employment enterprise is reviewed separately regarding income and eligible activity for that business. Income from all the family’s businesses is used to determine the family’s countable monthly income.

When both parents work for one (1) self-employment enterprise, see section 4080-2 H. 6. Sole Proprietor, Partnerships and Corporations Considerations for Income.

When comparing the self-employment income to the minimum wage the hours worked per week is multiplied by current hourly minimum wage rate , then multiplied by the conversion factor of four point three (4.3). See section 4080-2 H. Self-Employment Income.

Individuals who do not show a business profit and net income of at least the minimum wage are not eligible because they are not considered to be in an eligible activity.

If a self-employed individual receives tips, this income is to be included in the gross monthly income before any expenses are deducted.