section-ix ANNUALIZED SELF-EMPLOYMENT INCOME

Annualized self-employment is defined as self-employment where the income is received less often than monthly and is intended to be the annual support for the family. Examples include farming and certain fishermen. A. To project this income: 1. Obtain income verification for the previous 12 months or, if the business has been in operation less than 12 months, the number of months the business has been in operation. 2. Obtain verification of business expenses for the previous 12 months or, if the business has been in operation less than 12 months, the number of months the business has been in operation. 36 3. Enter the income and expenses for each month in NC FAST. 4. Continue counting this income until the next review unless there is a change. If there is a change, follow instructions in B. below. NOTE: For Work First Cash Assistance reporting cases with annualized self-employment do not recalculate the gross countable income at each Work First Family Assistance Report. As Work First Family Assistance Reports (DSS-8127) are received, review for completeness and timeliness and act on them at the next review. B. Changes to Annualized Self-Employment Change in annualized self-employment is defined as beginning or terminating employment or a substantial increase or decrease in income. 1. Beginning Employment or Substantial Increase or Decrease a. Verify the amount the family is expected to receive each pay period. b. If actual income and expenses are available for any month, budget the actual income and expenses for that month. c. If the family will not receive a full month's income, use actual (if available) plus projected income in that month. d. Use projected income and expenses for ongoing months of eligibility until the next review. 2. Terminated Employment a. Verify the family member's terminated income. b. If the income has terminated and the last pay or benefit was received prior to the date of application, do not count. c. If actual income is available for any month, budget the actual income for that month. 37 d. If a full month's income is not expected to be received, use actual (if available) plus projected income for the last month the terminated income is expected to be received. e. Budget as ongoing income if a full month's income is expected to be received. f. Do not count terminated income in any month after the last income is received. NOTE: For self-employment that is not annualized, follow budgeting procedures in V., VI., and VII. above. Examples of nonannualized self-employment include baby-sitting, selling Avon, or doing carpentry.