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Families and Children Manual Section: Financial Eligibility Policy Manual Number: 010.045 Chapter: Medically Needy Countable and Excluded Income

November 01, 2021 Division of TennCare 4

relationship is considered self-employed, unless incorporated or an LLC. Sharecropper: If a sharecropper pays the costs of doing business and receives a portion of the net income in exchange for her labor, she is considered self-employed, unless incorporated or an LLC.

If an applicant is self-employed and has a partner or is a joint owner of a business, the applicant’s self-employment net earnings will be based on his distributive share from the business. Severance Pay Severance pay is countable earned income in the month received. Sheltered Workshop Countable. Sheltered workshops provide employment opportunities for individuals with developmental, physical or mental impairment. Sheltered workshops prepare the individuals for gainful work and provide rehabilitation, work training and life skills. Sheltered workshops are operated by certain non-profit organizations, or by state or local government institutions. Sick Pay/ Disability Pay Countable. Sick or disability pay is a payment made to or on behalf of an employee by an employer or private third party for sickness or accident disability. Sick or disability pay is counted as earned income when it is received within 6 calendar months after the individual has stopped work. Sick or disability pay received more than 6 months after stopping work is counted as unearned income. Tips Countable. Wages Wages include all payment from employment, and the term is generally defined to mean gross wages. Gross wages are the total amount paid to the individual before deductions.

Wages are counted at the earliest of the following:

• When they are received or paid; • When they are credited to the individual’s account; or • When they are set aside for the individual’s use.

Deferred wage payment occurs when wages are paid at a time later than the wages normally would have been paid. If wages are deferred at employee’s request, count wages when they normally would have been received. If wages are deferred by the employer, count wages when they are received. Workforce Innovation and Opportunity Act (WIOA) The Workforce Innovation and Opportunity Act (WIOA) replaced the Workforce Investment Act of 1998. The WIOA funds a variety of programs designed to connect individuals with employment opportunities. Such programs include the Job Corps program,