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404 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility engage in similar enterprises are considered self-employed. (c) Self-employment does not include non-business activities such as property rentals or renting a room out of the financial group’s primary residence. 3. Self-employment means active engagement in one’s own business, trade, or profession, rather than earning a salary or wage paid by an employer or maintaining a passive ownership interest in a business entity. An individual is considered self-employed if the individual meets the criteria in subsection (2)(b) or section (5) of this rule. 4. A principal (see subsection (1)(b) of this rule) of a corporation or incorporated limited liability company cannot be considered self-employed unless the criteria in either subsection (a) or (b) are met. All other payments for working or performing services for the corporation or holding corporate office are treated in accordance with the policy on corporations and other business entities and earned income. (a) The individual files taxes for the incorporated business entity as self-employed on their personal taxes, rather than as a corporation. (b) The individual does not file taxes and meets the criteria in section (5)(c) of this rule. 5. Except for corporations and other business entities, an individual is self-employed for the purposes of this division of rules if the individual meets the requirements of one or more of (a), (b), or (c): (a) Files taxes as self-employed for their business on their personal taxes. (b) Is considered an independent contractor by the business. (c) Meets all the following criteria: (A) Is not required by the business to complete an IRS W-4 form; (B) Is not required to pay federal income tax or FICA payments from their paycheck(s); (C) Liability or workers’ compensation insurance for the individual is not paid by the business; (D) Meets at least one of the following: (i) Creates or provides the products or services they sell, or (ii) Sets the price for the products or services they sell; (C) Is responsible for the business expenses and losses; and (D) Receives profits from the business. Oregon Administrative Rule(s) 461-145-0915 — Self-Employment; General; OSIP, OSIPM, QMB Self-employment; costs that are excluded to determine countable income For all programs except HSD medical and ERDC, the following is cited from Oregon Administrative Rule 461- 145-0920 — Self-Employment; Costs that are Excluded to Determine Countable Income: (A) In all programs except the DSNAP, ERDC, OSIP, OSIPM, and QMB programs, unless prohibited by section (4) of this rule, and subject to the provisions of sections (7) and (8) of this rule and OAR 461-145-0930,