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New Self-employment

The new self-employment rules cover situations where a person just started working or has performed self-employment for less than one year.

Less than one month

When a person has been self-employed less than one month, determine if the available business or employment records allow you to anticipate his or her income.

Not Possible to Anticipate Income

When the person is self-employed but has not received sufficient pay to allow you to anticipate income, do not consider any self-employment income towards the household’s eligibility.

  • For example, when a person receives pay irregularly for less than a full calendar month, you cannot predict his or her future income. Do not use the partial monthly amount to anticipate income.

Document why you did not count income in case notes, and reevaluate the income at the mid-certification renewal.

Possible to Anticipate Income

When the self-employed person received enough pay that allows you to anticipate his or her income, use it to anticipate future income.

Here is an examples: 

  • When a person receives payments on a regular schedule, use the payments and a conversion factor to anticipate income. This is meant to be for income less than one month.

Expenses

Determine if the self-employed person has business expenses. A client who has self-employment business expenses receives a 50% deduction from their monthly gross income. Subtract 50 % when the client claims or documents expenses.

Worked More than a month

When the self-employed person has worked more than one calendar month but less than one year, follow these instructions.

  1. Calculate the gross self-employment amount by using the client’s records. Count a partial first month of income as a full month. Add the amounts received by the client in months since the business opened. Remember to use the verification that best reflects the income for the current or future months if the income has substantially changed.
  2. Ask if there are self-employment expenses. If the client claims business expenses, subtract 50% from the client’s gross self-employment income.
  3. Divide the remaining income by the number of months the client the timeframe the verification covers.

Document the self-employment verification you use and how you calculate income in case notes.

Example:

If a client began performing self-employment in mid-February and applies for SNAP in mid-June, divide the amount the client received from February through May. Divide this amount by 4 months.

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