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Division of Welfare and Supportive Services A-8219 Eligibility and Payments Manual EMPLOYMENT & TRAINING MTL 12/04 12 Jul 01 Work Activities Leading To Economic Independence If a participant is an independent contractor, franchise holder or owner-operator a self-employment worksheet (Form 2011 or Form 2120) must be completed, signed and submitted. Documentation must be provided substantiating claimed income and expenses. Example self-employment as an independent contractor, franchise holder, or owner-operator:
Owner and operator of an ice cream truck would have to use the self- employment worksheet to report his claimed income and expenses. His monthly income minus his monthly expenses divided by minimum wage would determine his average weekly hours. If a participant works commission only or on a contracting basis and receives a pay stub, a self-employment worksheet (Form 2011 or Form 2120) is not required. The number of participation hours will be those tracked by the employer or the hours should be derived by dividing the gross income less expenses by federal minimum wage (unless hourly wage is known OR unless otherwise specified), not to exceed an average of 40 hours per week in a report month. Examples of the many different types of commission or contracted employment:
A truck driver who is an independent contractor and receives compensation via a paycheck that shows his deducted expenses we would use his gross pay less deducted expenses divided by minimum wage (unless otherwise specified) not to exceed an average of 40 hours per week in a report month.
A Real Estate Agent working for commission submitted a time sheet verifying that he worked 40 hours per week but reports that he didn’t receive a wage yet. We would use the tracked and supervised hours reported on the time sheet.
A Saleswoman receives a sales commission or wage per demonstration (demonstrations are an hour long). If her sales commission is higher than the amount she would have received for her demonstrations, she receives the sales commission amount instead of the demonstration wage. We would use the documented wage divided by the commission to determine the hours worked (not to exceed 40 hours per week). Self-employment hours may be projected. (See Projection of hours in section A-821)