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(a) If an applicant or recipient works for more than one month before receiving a single payment in full settlement for the work performed, regardless of whether that person is an employee or self-employed, working with or without a contract, the department will

(1) prorate the income over the number of months the payment is intended to cover; and

(2) in each of the months the applicant or recipient actually works, but not in other prorated or contract months, allow the applicant or recipient the earned income deductions under 7 AAC 100.184 and the incapacitated-parent and child-care disregards under 7 AAC 100.186. (b) The department will prorate the income of a seasonally self-employed applicant or recipient in accordance with 7 AAC 100.174, regardless of whether the person obtains earned income monthly during the season of work. (c) The department will not prorate income received as a draw, receipt of sales, a payment on contract, or any other self-employment income that is, or can be, regularly received at least once a month during a 12-month period or longer. After the nonpersonal costs of doing business are subtracted in accordance with 7 AAC 100.172, the remainder will be budgeted on a monthly basis and treated the same as an employee’s wages under this chapter. (Eff. 7/20/2007, Register 183) Statutory Authority: Authority: AS 47.05.010 AS 47.07.020 AS 47.07.040 7 AAC 100.172. Self-employment income. (a) Nonpersonal costs of doing business allowed under this section may not be deducted from income received from the production or sale of goods or services unless the department has determined that the individual is self-employed under this section. An individual is self-employed if the individual

(1) 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; or

(2) files annual federal tax returns showing that the income is from self-employment. (b) For the purposes of this section, an individual is considered an employee and not self-employed if another individual or business is responsible for providing workers’ compensation insurance, making contributions under 26 U.S.C. 3101 — 3128 (Federal Insurance