135.213 Self Employment and Community Service Hours

Calculating the Number of Hours for Self-Employment

Self-employment is considered unsubsidized employment. This is a core activity. See Cash Assistance Handbook Chapter 152, Self Employment Income.

To calculate the hours of self employment for work participation :

1. Use the gross earned income

2. Subtract allowable business expenses

3. Divide the number by the applicable state or Federal minimum wage whichever is higher in accordance with the Fair Labor Standards Act (FLSA).

The resulting number will count towards meeting the work requirements. Round to the nearest whole hour when the result is a fraction of an hour. If the fraction is less than .5 hour, round down. Round up to the next whole hour if the fraction is .5 or above.

Example: An eligible specified relative applies for TANF for themself and 2 children, ages 3 and 5. The eligible specified relative has a work requirement of 20 hours per week. The eligible specified relative is a self-employed artist. The eligible specified relative provides the CAO with the most recent tax return indicating gross earnings of $7,540 after deducting allowable business expenses.

1. $7,540 divided by $7.25 equals 1,040 hours of annual participation.

2. This result divided by 52 weeks is 20 hours per week.

3. The case worker records Jane’s hours of participation as 20 hours per week in eCIS on the Employment and Wages screen.

135.214 Calculating the Number of Hours for In-Kind Employment

Work compensated with in-kind services or goods is also considered employment. The number of hours of work that is compensated by in-kind goods or services and counted toward participation is determined by the individual providing the in-kind compensation. The Commonwealth does not count income-in-kind or other benefits received at a reduced rate or at no charge when determining eligibility for TANF assistance.

The value of the in-kind goods or services should be totaled and divided by the applicable federal or state minimum wage in accordance with FLSA to determine the number of countable, verified hours of participation in AC 33.

As a reminder, when the CAO receives verification of employment, if the verification is representative of ongoing, unsubsidized employment at initial entry, the corresponding activity hours are input into the activity and prospectively for a six-month period. A copy of at least one pay stub that was current at the time is used to project hours for no more than six months. Hours of participation will be adjusted if the individual reports and verifies a change in employment status such as increased or decreased hours, loss of job, or new employment. Upon expiration of the six-month period or at the semi-annual review, whichever comes first, the individual must again provide verification that will be used to project the hourly participation for the subsequent six-month period.

Example 1: A parent completes odd jobs for their landlord in exchange for rent (valued at $800 per month). Divide by four weeks. $200, the result, is divided by minimum wage. The result is 27.6, which equals the number of hours per week the adult is considered working.

Example 2: An eligible specified relative cleans their mother’s house weekly in exchange for their mother paying their cell phone bill. The mobile plan is $100 per month. Divide by four weeks. $25, the result, is divided by minimum wage. The result is 3.5, which equals the number of hours per week the adult is considered working.

Calculating the Number of Hours for Community Service

The CAO will indicate on the AMR the number of allowable hours in accordance with the Fair Labor Standards Act (FLSA) calculation. The FLSA calculation takes into consideration the cash assistance grant along with Supplemental Nutrition Assistance Program (SNAP) benefits in addition to other applicable deductions and adjustments.

Individuals cannot be permitted to participate for more community service hours than the determined amount indicated on the AMR. O nly the CAO is permitted to perform this calculation.

The Fair Labor Standards Act (FLSA) limits the number of hours an individual may participate in community service. To determine the maximum number of hours an individual may participate for the purpose of counting toward the work requirement, use the following calculation:

1. Determine which monthly benefits will be used:

TANF ONLY household - use only the monthly cash assistance grant

TANF/SNAP household - add the monthly cash assistance grant to the monthly SNAP grant .

2. Subtract any child support paid to DHS on behalf of a child in the budget group, including the child support pass-through up to the maximum allowed.

3. Divide the result by the current minimum wage( this can be the state minimum wage or the federal minimum wage whichever is greater) to determine the number of hours an individual may participate in community service during the entire month; then

4. Divide the monthly figure by 4.0 to determine the number of weekly hours an individual may participate in community service. When the calculation results in a fraction of an hour, round the result down to the nearest whole hour .

Additional earned or unearned income is already adjusted to the cash grant so it is not used to calculate the hours of community service.

If an individual is issued a special allowance, do not include the amount of the allowance when calculating the maximum allowable community service hours.

Example: An eligible specified relative and children receive a monthly cash assistance grant only of $403 per month. The calculation is:

Total monthly cash assistance grant $403 Divided by state minimum wage ÷ $7.25 Maximum hours per month =55 Divided by ÷ 4.0 Maximum hours per week =(13.75) 13

Example: A parent and 10-year-old son receive a cash assistance grant of $316 per month. The monthly SNAP grant is $298. The calculation is:

Total monthly cash assistance and SNAP grants $614 Divided by state minimum wage ÷ $7.25 Maximum hours per month =84 Divided by ÷ 4.0 Maximum hours per week =21

Example: An eligible specified relative and children receive a monthly cash assistance grant of $497 per month. The monthly SNAP grant is $542. Child support in the amount of $350, including the support pass through is collected by DHS monthly. The calculation is:

Total monthly cash assistance and SNAP grants $1039 Minus child support -$350 Net monthly cash assistance grant =$689 Divided by state minimum wage ÷$7.25 Maximum hours per month =95 Divided by ÷4.0 Maximum hours per week =(23.75) 23