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430 (07/2026) Chapter 2:Eligibility • Section 6: Non-financial eligibility
If the applicant says they have more than 50 percent in costs, the full allowable cost can be used. The amount of the deduction is limited to costs that fit the definition of an allowable cost as described in Treatment of specific assets. Verification of costs is no longer required. In the ERDC program, individuals may choose if they would like to deduct costs or not. Because countable income is directly tied to their copay amount, it is up to the family to make the best choice financially for their family, whether they need more child care hours or a lower copay. ODHS|OHA should select which option the family has chosen in the ERDC Self Employment Deduction screen in ONE after running eligibility. Child care hours and self-employment Child care hours for self-employed individuals are determined by taking their income after costs and dividing it by the local Oregon state minimum wage for the business location. If the applicant needs more authorized child care hours, they can choose which cost option they would like to use. This will also affect their copay. For example, if a participant decides they need more child care hours with zero deductions, they will get more authorized hours; however, their copay will be higher as their income will be coded as a higher amount. For two-caretaker families with self-employment earnings, ONE determines child care hours by comparing the caretakers’ overlapping hours from the Caretaker Schedule screen to the caretakers’ income after/before costs (whichever the family chose) and divides by the Oregon state minimum wage for the business location. The ONE system then authorizes the least number of hours after comparing the two. For example, the Caretaker Schedule screen reflects 45 overlapping hours per week. The income after/ before costs divided by local Oregon state minimum wage for the business location reflects 32 hours per week. The ONE system will authorize 32 hours per week (resulting in a full-time authorization of hours) because 32 hours is the least number of hours after comparing the two. In some circumstances, extra hours may be authorized for self-employment. Calculating work hours when less than minimum wage is earned When a caretaker earns less than state minimum wage, the countable income is calculated in ONE by dividing the current minimum wage in their area to determine the number of child care work hours allowed. The resulting figure is the maximum number of hours that can be authorized, not to exceed 172 hours. The minimum wage is determined by the business location. For a caretaker in a start-up phase of employment that does not pay an hourly wage or salary, such as working on commission, the caretaker must supply verification of an anticipated amount of income. This may include the employer’s statement of average wages for someone just starting out in a similar position. Student hours Students in one- or two-caretaker families can receive ERDC if they meet all other eligibility criteria. This