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Child Care Assistance Program Policy Manual Issued 07/2023 Authorizing care – Self-employment 9.1.1.1 Employment requirements for families with Employment Plans If a MFIP or DWP family has an approved Employment Plan with a self-employment activity, the parent is not subject to the minimum hour and minimum wage requirements. Authorize the number of hours needed for the self-employment activity or for support of the self-employment activity, as indicated by the job counselor. The number of hours authorized for each child should be the number of hours that care is needed to support the parental authorized activities, excluding the hours that the child does not need child care or the hours that the provider is unavailable. The child may not need child care due to the child being in school. Employment requirements outside of an Employment Plan Basic Sliding Fee, Transition Year, Transition Year Extension and MFIP or DWP participants without an approved Employment Plan must meet minimum employment requirements that apply at application, redetermination and the end of job search outside of an Employment Plan to receive child care during self-employment hours. See Chapter 4.6.6.6 (Employment Outside of An Employment Plan). Determining the minimum wage to use See Chapter 4.6.6.15 (Applicable minimum wage) for the minimum wage references. Use the federal minimum wage to determine the number of hours unless the self-employed person is subject to a state minimum wage. If a self-employed person is subject to a state minimum wage, use that minimum wage to determine the number of hours. Determining if self-employment meets minimum activity requirements First, calculate the annualized self-employment income using the self-employment income calculation method chosen for the self-employment activity. See Chapter 6.15.6 (Annualizing self-employment income). To determine if self-employment meets minimum activity requirements: • Divide the annualized self-employment income from the self-employment activity by: - 52 weeks if the self-employment activity occurs all year, or - If the activity is seasonal or temporary, by the number of weeks of activity participation. • Then divide that number by the applicable minimum wage to determine the number of self- employment hours per week at the applicable minimum wage. If the parent is self-employed for at least an average of 20 hours per week at the applicable minimum wage (10 hours if a full-time student), they meet the minimum activity requirements. At application, redetermination, and the end of job search outside of an Employment Plan, if the parent is not self-employed for at least an average of 20 hours per week at the applicable minimum wage (10 hours if a full- time student), they do not meet the minimum work requirements (unless they have another employment activity – see below).