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Minnesota Department of Human Services Combined Manual
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ISSUE DATE: 02/2016

Self-employed people are those who are responsible for their own work schedule and do not have coverage under an employer's liability insurance or workers' compensation.

Self-employed people generally work for themselves rather than an employer. However, people employed in some types of services may be self-employed even if they have an employer or work out of another's business location (for example: real estate sales people, people who work for commission sales, manufacturer's representatives, independent contractors). Self-employed people may or may not have FICA deducted from the check an employer or another party issues to them. When self-employed people indicate they are independent contractors, check with the business the self-employed client is contracting with to see if it considers the client to be self-employed or an employee. If the business states that it considers the self-employed person to be an independent contractor, then the client is self-employed.

People who provide day care in their own homes are self-employed. People who provide day care in someone else's home are not self-employed.

Self-employed people may own a business solely or in partnership.

Income from a sole proprietorship is self-employment income.

When the business is a partnership or S-Corporation, all wages, draws, guaranteed payments, or compensation of officers paid to the business owner or a household member is considered earned income. Any other income from a partnership or S-Corporation is self-employment income.

S-Corporations are considered self-employment businesses. Income received by the shareholders is countable income regardless of whether the individual decides to reinvest his or her income back into the corporation. See 0002.59 (Glossary: RSDI...) for the definition of S-Corporation.

C-Corporations are NOT self-employment businesses. See 0002.09 (Glossary: Calendar Month...) for the definition of C-Corporation.

For treatment of income from specific types of self-employment businesses, see:


Self-Employment Income From Farming.


Self-Employment Income From Roomer/Boarder.


Self-Employment Income From Rental Property.


Capital Gains as Income.

Add gross self-employment income to other earned income to determine total gross earned income for the client. For programs with a gross income limit, count gross self-employment income toward the gross income limit. Apply the disregards and deductions to total earned income (from self-employment and other earned income) to determine net income. See 0018.06 (Work Expense Deductions), 0018.09 (Dependent Care Deduction), 0018.18 (Earned Income Disregards).

Also see 0017.15.33.03 (Self-Employment, Convert Inc. to Monthly Amt).


Follow general provisions.


Follow general provisions.

For information about farm loss offset, see the SNAP Farm Loss Offset Policy Guide (PDF).

For information about rental income, see 0017.15.33.30 (Self-Employment Income From Rental Property).


For SSI recipients, no county action is required. SSA will make all income determinations and adjustments.

For non-SSI recipients due to excess income, follow general provisions.


Follow general provisions for aged, blind, or disabled clients. Follow GA for all other adults.

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