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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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9.1.1.1 Authorizing Care – Self-employment

ISSUE DATE: 02/2018

Employment requirements for families with Employment Plans

If a MFIP/DWP family has an approved Employment Plan with a self-employment activity, the parent is not subject to the minimum hour and minimum wage requirements. Authorize the number of hours needed for the self-employment activity or for support of the self-employment activity, as indicated by the job counselor. The number of hours authorized for each child should be the number of hours that care is needed to support the parental authorized activities, excluding the hours that the child does not need child care or the hours that the provider is unavailable. The child may not need child care due to the child being in school.

Employment requirements outside of an Employment Plan

BSF, TY, TYE and MFIP/DWP participants without an approved Employment Plan must meet employment requirements at application and redetermination to receive child care during self-employment hours.

Determining the minimum wage to use

See Chapter 6.16 (Applicable minimum wage) for the minimum wage references. Use the higher minimum wage unless the parent supplies information that they are not subject to this standard. If a self-employed person believes they are not subject to the higher minimum wage and verification is not available, work with the parent to identify the applicable minimum wage. If verification is not available, accept a statement from the parent that they are not subject to the higher minimum wage and the reason why.

Determining if self-employment meets minimum activity requirements

You must calculate the annual CCAP gross earned income from self-employment income first. Gross earned income from self-employment is the gross-self-employment receipts less the operating expenses. See Chapter 6.15.6 (Annualizing self-employment income).

To determine if self-employment meets minimum activity requirements:

  • · Divide the annual CCAP gross earned income from the self-employment activity by:
  • - 52 weeks if the self-employment activity occurs all year, or
  • - If the activity is seasonal or temporary, by the number of weeks of activity participation.
  • · Then divide that number by the applicable minimum wage to determine the number of self-employment hours per week at the applicable minimum wage.
  • If the parent is self-employed for at least an average of 20 hours per week at the applicable minimum wage (10 hours if a full time student), they meet the minimum activity requirements.

    At application and redetermination, if the parent is not self-employed for at least an average of 20 hours per week at the applicable minimum wage (10 hours if a full time student), they do not meet the minimum activity requirements (unless they have another employment activity – see below).

    During the 12 month eligibility period, if the parent no longer meets minimum activity requirements but is still working, the parent continues to be eligible.

    Authorizing child care for self-employment

    If the parent meets the minimum activity requirements, authorize child care for the self-employment activity for the LESSER OF:

  • · The number of hours determined by dividing the annual CCAP gross earned income from the self-employment activity by 52 weeks and then by the applicable minimum wage, plus up to one hour per eight hours for meals and up to two hours per day for travel time.
  • OR
  • · The number of hours spent in the self-employment activity, plus meal/break time and up to two hours per day for travel time.
  • For 12 Month Reporters, the amount of care authorized during the 12 month eligibility period must continue at the same number of hours or more until redetermination, including when the parent no longer meets minimum activity requirements but is still working. If a parent requests more hours of care, they must verify the need for more hours.

    For Schedule Reporters, the amount of care authorized during the 12 month eligiblity period can change when a parent’s activity schedule changes. Schedule Reporters must report changes in hours worked.

    Agencies cannot require families to submit monthly reporting logs for CCAP.

    See Chapter 9.12 (Authorization Changes During the 12 Month Eligiblity Period).

    Self-employment in combination with other employment

    If the parent has a self-employment activity and another employment activity:

  • · Determine the number of hours for the other employment activity.
  • · Determine the number of hours in the self-employment activity by dividing the annual CCAP gross earned income from self-employment by 52 weeks and by the applicable minimum wage.
  • · Add the hours for the self-employment activity and the other employment activity to determine if the parent is employed at least an average of 20 hours per week at the applicable minimum wage (10 hours if a full time student).
  • - If the parentt is not employed for at least an average of 20 hours per week at applicable minimum wage (10 hours if a full time student), they are not eligible for child care at application and redetermination for their employment activities.
  • - If the parent is employed for at least an average of 20 hours per week at applicable minimum wage (10 hours if a full time student), add the hours for self-employment activity and the hours for the other employment activity to determine the number of hours to authorize.
  • Self-employment with negative gross income

    If the parent has at least one self-employment activity with a negative gross income:

  • · Determine the annual CCAP gross earned income from each self-employment activity separately.
  • · Divide the annual CCAP gross earned income for each self-employment activity by 52 weeks and then by the applicable minimum wage to determine the number of hours the parent is employed in that self-employment activity. The number of hours associated with the self-employment activity with the negative gross income is 0.
  • · Add the number of hours from each self-employment activity and all other employment activities together to determine if the parent is employed for at least 20 hours per week at the applicable minimum wage (10 hours if a full time student).
  • - If the parent is not employed for at least an average of 20 hours per week at applicable minimum wage (10 hours if a full time student), they are not eligible for child care at application and redetermination for their employment activities.
  • - If the parent is employed for at least an average of 20 hours per week at applicable minimum wage (10 hours if a full time students), use the total number of hours from each employment activity (including self-employment) to determine the number of hours to authorize.
  • Legal authority

    Minnesota Statutes 119B.009
    Minnesota Statutes 119B.095
    Minnesota Rules 3400.0040

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