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S N A P M A N U A L

137 (NN) Work Training Allowance (WTA) Training allowance paid to DSS Work Experience or Community Service programs’ participants through the TANF Work Program.

1 1 . 4 S E L F - E M P L O Y M E N T I N C O M E Self-employment income is income earned directly from one’s own business, trade or profession rather than a specified salary or wages from an employer.

(1) Treatment of self-employment income

Self-employment income must be averaged over the period the income is intended to cover, even if the household receives income from other sources. If the averaged amount does not accurately reflect the household's actual circumstances because the household has experienced a substantial increase or decrease in business, the Agency must calculate the self-employment income on the basis of anticipated, not prior, earnings. The following describes the treatment of self-employment income:

For self-employment income received from a business enterprise that has been in existence at least a year, average the income over the period the income is intended to cover.

For self-employment income received from a business enterprise that has been in existence less than a year, average the income over the period of time the business has been in operation and project a monthly amount for the certification period.

If there is no change in actual circumstances, use last year's tax return or other source of verification and average over the period the income is intended to cover to determine anticipated amount of income to be counted. On a case-by-case basis, where there are little or no past records to base income for the future, use a best estimate.

If the household has experienced a substantial increase/decrease in business income, calculate the self-employment income on the basis of anticipated earnings. If earnings which reflect the increase/decrease income are available, use these earnings to anticipate income. If earnings which reflect the increase/decrease in business are not available, a best estimate must be used based on the amount of pay and the frequency of pay. Examples of substantial increase/decrease include:

• Changes in the nature of the business • Termination of or starting a new self-employment enterprise • Reported increases or decreases in income which were not previously considered.

(2) Determining self-employment income