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Subsidized Child Care Assistance Program Policy Manual Chapter 7. Family Definition and Determining Income Eligibility Revised 08/01/2024

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1. Standard Earned Income- Wages, Salaries, Tips (including Contract Income, pay advances, work-study, longevity pay etc.).

i. Verify the most recent representative pay. ii. Verify the client’s status, rate of pay, and average hours worked with employer, either verbally or in writing. iii. Accept client’s statement as the last possible verification method if unable to obtain from a third party.

2. Special Earned Income- Rentals, Royalties, Self-Employment i. Income tax return or tax forms a. Tax returns provided by the applicant/recipient are an acceptable form of verification. b. (1099) verification for Self-Employment Note: For contracted employees that have a 1099, it can be accepted if skillful interviewing is completed to support the DSS/LPA accepting the 1099. Skillful interviewing and documentation should include: • How many months does the 1099 cover? • Does the client perform any other contract work that the presented 1099 does not cover? • Does the income reported on the 1099 meet the gainful employment standard? ii. Business records a. Business records provided by applicant/recipient are an acceptable form of verification. This may include but is not