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1000.13 TANF MANUAL 10/23 PAGE 40

If the participant states she has been self-employed for a year or more, a copy of the previous year’s income tax return will suffice to show that the participant is engaged in a legitimate business. If the tax return is provided and the worker is satisfied with the documentation, the up-front job search can be waived if the participant is engaged in self-employment for 30 or more countable hours of self-employment per week.

c. For self-employment to be a countable activity for VIEW, the participant must be paid at least minimum wage. Countable weekly hours are actual hours worked, or hours computed as follows, whichever is less:

Determine the monthly net income by subtracting the monthly business expenses from the monthly gross income. The VIEW case record must contain a copy of the verification of the gross income and business expenses. This will apply even when the information is contained in the TANF case record.

Divide the monthly net income by the minimum wage.

Divide this figure by 4.33 and round the result to the next whole number. Compare the computed hours to those that are verified as actual hours of participation. The countable hours are the actual hours worked (if verified by a source other than the client), or the hours computed above, whichever is less. If the countable hours are 30 or more, the assignment to (full-time) self-employment should be for a period of six months. If the countable hours are less than 30, the client must be assigned to additional activities.

Example: Ms. A is self-employed as a nail technician. She provides a signed statement from the property owner verifying that the business is in operation 40 hours per week. Her gross income is $550 for the month and she has business expenses of $340 per month.

$ 550 – gross income - 340 – business expenses $ 210– net monthly income ÷12.00 – minimum wage 17.50 ÷ 4.33 4.04 – will be rounded up to 5 countable hours per week

Only 5 hours per week are countable. Ms. A must be assigned to an additional 30 hours per week in other activities.

4. Employment and the TANF Earned Income Enhanced Disregard

a. A TANF recipient who is employed in an unsubsidized job at the time she signs the Agreement of Personal Responsibility at the initial VIEW assessment will receive the TANF enhanced earned income disregards the following month. Enhanced disregards allow a participant to remain eligible for TANF benefits as long as the participant’s total household income does not exceed 100% of the federal poverty limit for the size of his household or 150% of the federal poverty level for TANF- UP households.

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