Employment requirements for families with Employment Plans

If an MFIP 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

Basic Sliding Fee, Transition Year, Transition Year Extension and MFIP participants without an approved Employment Plan must meet minimum employment requirements that apply at application, redetermination and the end of job search outside of an Employment Plan to receive child care during self-employment hours. 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. See Chapter 4.6.6.6 (Employment Outside of An Employment Plan).

Determining the minimum wage to use

See Chapter 4.6.6.15 (Applicable Minimum Wage) for the minimum wage references. Use the federal minimum wage to determine the number of hours unless the self-employed person is subject to a state minimum wage. If a self-employed person is subject to a state minimum wage, use that minimum wage to determine the number of hours.

Determining if self-employment meets minimum activity requirements

First, calculate the annualized self-employment income using the self-employment income calculation method chosen for the self-employment activity. See Chapter 6.15.6 (Annualizing Self-Employment Income).

To determine if self-employment meets minimum activity requirements:

· Divide the annualized self-employment 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, redetermination, and the end of job search outside of an Employment Plan, 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 work requirements (unless they have another employment activity – see below).

During the 12-month eligibility period, once the parent meets the minimum work requirements, the employed parent remains eligible until redetermination, even if their hours fall below the minimum work requirements.

Authorizing child care for self-employment

If the parent meets the minimum work requirements, authorize child care for the self-employment activity (considering child school schedule and provider availability) for the LESSER OF:

· The number of hours determined by dividing the annualized self-employment 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 the self-employment activity is seasonal, divide by the number of weeks of activity participation.

To determine which is the lesser of these two options, the client must provide verification of their self-employment work schedules (either from business records or a signed statement from the client, as described in 7.27).

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.

See Chapter 9.12 (Authorization Changes During the 12-Month Eligibility Period) and Chapter 7.4 (Verification - 12-Month Eligibility 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 annualized self-employment income 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 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, redetermination and the end of job search outside an Employment Plan 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.

*If the self-employment activity is seasonal, divide by the number of weeks of activity participation.

Self-employment with negative gross income

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

· Determine the annualized self-employment income from each self-employment activity separately.

· Divide the annual CCAP annualized self-employment 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, redetermination and the end of job search outside an Employment Plan 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.

*If the self-employment activity is seasonal, divide by the number of weeks of activity participation.

Legal authority

Minnesota Statutes 142E.10, subd. 3
Minnesota Statutes 142E.12, subd. 1
Minnesota Rules 3400.0040, subp. 8
Minnesota Rules 3400.0110, subp. 3