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In order to establish income eligibility, verification of all income received or anticipated to be received monthly by the family unit is required at the time of application/redetermination. For initial applications and reapplications, the income generally to be counted is the income verified for the calendar month prior to the month of application. For redeterminations, the income generally to be counted is the income verified for the month prior to the month of redetermination.

The reason for using pay stubs or income verifications received over two months prior to the month of application must be documented in VaCMS. Accept an applicant/recipient’s written statement that there is no income unless there is reason to doubt the statement. When verification is required, the LDSS must notify the applicant/recipient of the necessary verification and allow the applicant/recipient 10 days to provide the required verification.

Indirect Payments When an applicant or recipient appears to be working but is not paid directly, the Child Care Worker must determine whether there is an identifiable amount that must be considered as income. Such arrangements must be evaluated using the following criteria: If the applicant/recipient performs services but receives no pay directly, and there is an identifiable amount of income that could be paid directly to the applicant/recipient, count the identifiable amount as income. • If the applicant/recipient performs services but is not paid directly, and there is no identifiable amount of income that could be paid to the applicant/recipient, no income is counted.

Example An applicant/recipient works for a hotel chain and, in lieu of wages paid directly to the applicant/ recipient; the employer pays for room and board on behalf of the applicant/recipient. In this situation, there is an identifiable wage. The cost of the room is $200.00 per week and, even though it is not paid to the applicant/recipient, it must be counted as earned income.

Self-Employment If the applicant/recipient indicates that they are self-employed, they must provide documentation to show they are legitimately engaged in self-employment, preferably tax return information. The proof could include, but is not limited to, income tax records or other proof of earnings, a business license, or rent receipts for office space. The applicant/recipient must earn at least minimum wage for actual hours worked, based on gross income. If the applicant/recipient has been self-employed for less than a year, they must provide proof of earnings equivalent to federal minimum wage for actual hours worked at the time of their next scheduled redetermination. If they are unable to provide such proof of earnings, they will no longer be eligible for child care subsidy. VaCMS will count net income from self-employment, farm, or non-farm. The Child Care Worker should not count the value of goods consumed by the family.