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CAPS Policy – Eligibility Requirements No.: CAPS/00-6 Effective Date: 10/01/2016 Revised: 07/01/2025 Revision Effective: 07/01/2025

CAPS Policy Manual

Page 34 of 109 6.8.1.5 To promote continuity of care, temporary changes in state-approved activity do not affect eligibility. This includes any reduction in work or education hours as long as the parent is still working or attending a training or educational program.

6.8.1.6 If the state-approved activity drops below the required hours outlined in this section during the eligibility period, the parent will remain eligible through the end of the eligibility period.

6.8.1.7 If there are two parents in the family unit, each parent must meet the activity requirement and verification documents must be received for both parents.

6.8.1.8 If there are two parents in the family unit and one is disabled and cannot provide care for the child, care may be authorized based solely on the eligibility of the non-disabled parent. Verification of the disabled parent’s disability is required. Acceptable forms of verification include a statement from a licensed medical personnel or documentation from a state or federal agency.

6.8.2 Employment – Participation in paid employment qualifies as a state-approved activity.

6.8.2.1 Employment includes the following: • Work that yields a W-2, W-9, or 1099 (including self-employment) • Work study when enrolled in vocational training, associate degree, or bachelor’s degree programs • Other work performed for income not captured on a W2 including tips, commission, or cash-paying employment (including self-employment).

6.8.2.2 Volunteer work is only considered a state-approved activity for families who participate in required volunteer activities through Head Start and Early Head Start programs.

6.8.2.3 Acceptable forms of verification of hours for employment includes pay stubs, a letter from the employer on business letterhead, CAPS Self-employment Report (Appendix CC) (for self-employed parents only), CAPS Employment Verification (Appendix F), or employer wage records.

Note: The acceptable forms of verification are not all-inclusive, and families have the right to submit other forms of third-party verification/documentation that must be credible to determine activity hours. Activity hours can also be verified using other eligibility program system sources when sufficient documentation is available.

6.8.2.4 Employment (including self-employment) hours will be calculated with the most recent four weeks of earnings and converted to a weekly amount.

6.8.2.5 If the pay frequency is in a manner other than a weekly basis, the following calculation will be applied to convert the hours to a weekly amount:

Pay Frequency Calculation Add hours for Divide total hours by Weekly Most recent 4 pay periods/pay stubs 4 Bi-weekly (every other week) Most recent 2 pay periods/pay stubs 4 Semi-monthly (twice a month) Most recent 2 pay periods/pay stubs 4.3333 Monthly No addition required – use monthly hours 4.3333

Note: For CAPS purposes, the pay frequency for self-employment is monthly.