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on a monthly basis and treated the same as employee’s wages under this chapter. (Eff. 8/5/92, Register 123; am 10/1/97, Register 143; am 1/7/2005, Register 173) Statutory Authority: Authority: AS 47.05.010 AS 47.27.005 7 AAC 45.445. Determining self-employment income. (a) In order to determine whether nonpersonal costs of doing business may be deducted from gross income under this section, particularly if a contract relationship exists, the department will determine whether an individual is self-employed or working as an employee by considering an individual to be

(1) self-employed if the individual has a business license to engage in that work, as required by AS 43.70, or any other license, permit, or certificate necessary to perform that work as required by a state or local government;

(2) self-employed if that individual files annual federal tax returns showing that the income is from self-employment; or

(3) working as an employee if another individual or business is responsible for providing worker’s compensation insurance, making FICA contributions, or completing and submitting federal income tax withholding forms. (b) The gross monthly earned income of an individual who is self-employed is the total amount of money received, or expected to be received during a month, from self-employment after the non-personal costs of doing business allowed under this section are subtracted. If a self-employed individual also has unearned income or income earned as an employee, the gross monthly amount of this income is not added to the gross monthly earned income from self-employment. (c) Unless otherwise provided in this section, non-personal costs of doing business that may be deducted must be identifiable and must be reasonable and necessary. Non-personal costs of doing business include payment of interest on business loans; rent of business property; utilities; heat; taxes on business purchases if not already included; maintenance and repair of rental property if necessary to keep the property rented; bookkeeping costs; costs of merchandise, tools and equipment necessary to produce income; wages and benefits paid to employees; and the direct costs of reasonable and necessary non-personal transportation. (d) For a self-employed fisherman, the identifiable costs of doing business that are