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Child Care Assistance Program Policy Manual Issued 07/2023 Self-employment income 6.6.5 Self-employed people are those who are responsible for their own work schedule and do not have coverage under an employer's liability insurance or workers' compensation. Self-employed people generally work for themselves rather than an employer. However, people employed in some types of services may be self-employed even if they have an employer or work out of another's business location (for example: real estate sales people, people who work for commission sales, manufacturer's representatives, independent contractors). Self-employed people may or may not have FICA deducted from the check an employer or another party issues to them. People who provide gig work, including those using digital platforms such as an app or website, are considered self-employed independent contractors unless an employer verifies W-2 employee status. Examples of gig work include: • Driving a car for booked rides or deliveries • Running errands or completing tasks • Selling goods online • Renting equipment • Providing creative or professional services. Refer to the following chapters for information about: • Annualizing self-employment income. See Chapter 6.15.6 (Annualizing Self-Employment Income). • Documentation requirements for self-employment income. See Chapter 7.9 (Income verification). • Determining if self-employment meets minimum activity requirements and authorizing care for self- employment. See Chapter 9.1.1.1 (Authorizing Care – Self-employment). Rental property income Rental property income is earned or unearned self-employment income, depending on the amount of time the owner spends maintaining or managing the rental property. See Chapter 6.15.9 (Annualizing Rental Property Income). Farm income Farmers are considered self-employed. They may be working full-time, part-time or as hobby farmers.

Common types of farm income include: • Proceeds from sale of crops, livestock or products • Production from livestock • Income from home-produced food • Soil conservation payments and other subsidies • Farm related insurance payments • Proceeds from rent, including wages to the farmer/operator