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Nevada Division of Welfare and Supportive Services Energy Assistance Program Manual a copy of their contract or a letter from the school or district stating how they are paid; i.e., 12 months, 10 months, or 9 months and whether paid bi-weekly, semi-monthly or monthly. Information may also be available through the school district’s website. Refer to conversion methodology in Chapter 800. K. Self-Employment/Non-Profit Business

An individual is self-employed if engaged in an enterprise for gain, either as an independent contractor, franchise holder, or owner-operator. This includes individuals working as an Avon, Mary Kay or Tupperware representative or a newspaper delivery and/or individuals who collect cans and bottles or is a professional gambler. The self-employed individual’s income and expenses must be verified. If the individual has either income taxes or FICA withheld from his earnings, he is an employee and not self-employed. This does not apply to self-employed individuals who are the sole proprietor of a business, even if the individual draws income from the business as wages. Budgetable self-employed income must be based on the full income and expenses of the business. Self-employment income is budgeted as any other income; therefore, the income and expenses must be verified. Refer to Chapter 8 for conversion methodology. Verification of self-employment: I. Business records and income tax forms; NOTE: Annual or quarterly income tax statements or updated business records/accountant records can be used. When using income Tax form, 1040, 1099, Schedule C, etc. to verify income and expenses, it is not a requirement to obtain receipts for expenses listed on the Income Tax form. II. Self-Employment Worksheet, Form 2011-EG, completed and signed by the individual. Use Form 2011-EG if the income and expenses cannot otherwise be verified by collateral contacts or documentary information. III. If current reported income is substantially different from the amount reported on the prior year’s income tax form, use the Self-Employment Worksheet to verify the most current information. Proof of income and expenses are needed when the Self-Employment Worksheet Form is utilized to determine a monthly net income. Unless income is seasonal (very irregular), a 30 to 60-day history is sufficient to annualize. L. Contractual and Seasonal Earnings I. Contractual earnings are wages and salaries only. These earnings are considered earned income. Self-employment income, or income received on an hourly or piecework basis are not included. The two basic types of contractual earnings are: 1. Contractual employment - Non-seasonal if contracted for a specific amount of time and does not recur. Prorate earnings over the period of time covered by the contract. Example: The household member has a contract to perform a job or task within a certain time period for a set amount of wages. The amount of wages is not contingent on the number of hours worked. MTL 01/24 June 25, 2024 - 14 - Section 700 – Income