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Minnesota Department of Human Services Child Care Assistance Program (CCAP) Policy Manual
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9.15.1 Authorized Hours - Self-Employment

ISSUE DATE: 07/2017

NOTE: You must calculate the annual CCAP gross earned income from self-employment income BEFORE you determine the number of hours to authorize. 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 whether care can be authorized for the self -employment activity:

  • · Divide the 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 if the individual 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). See Chapter 6.16 (Applicable Minimum Wage).
  • The higher minimum wage applies unless the applicant or participant can supply information to show that they are not subject to this standard. If a self-employed person believes that they should not be subject to the higher minimum wage as the applicable standard and verification is not available, the county should work with the applicant or client to identify the correct applicable minimum wage. If a self-employed person believes that they should not be subject to the higher minimum wage but verification is not available, accept a statement from the person that states that they are not subject to that amount and the reason why.

    If the participant is self-employed for less than an average of 20 hours per week at the applicable minimum wage (10 hours if a full time student), they are not eligible for child care during self-employment hours.

    If the participant 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), authorize child care 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.
  • If, in addition to the self-employment activity, the participant also has an employment activity that is not self-employment:

  • · Determine the number of hours spent in the employment activity that is not self-employment.
  • · Determine the number of hours spent in the self-employment activity by dividing the annual CCAP gross earned income from the self-employment activity by 52 weeks and then by the applicable minimum wage.
  • · Add the hours for the employment activity that is not self-employment and the hours for the self-employment activity to determine if the participant is employed for at least an average of 20 hours per week at the applicable minimum wage (10 hours if a full time student).
  • - If the participant 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 during their employment activities.
  • - If the participant 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 the employment activity that is not self-employment and the hours for the self-employment activity to determine the number of hours to authorize.
  • If the participant 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 participant 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 employment that is not self-employment and each self-employment activity together to determine if the participant is employed for at least 20 hours per week at the applicable minimum wage (10 hours if a full time student).
  • - If the participant 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 during their employment activities.
  • - If the participant 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 Rules 3400.0040

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