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COMMENT DUE DATE:  

February 16, 2012

DATE: 

January 11, 2012

Laura Brown FSSD (405) 521-4396

Dena Thayer OIRP Programs Administrator (405) 521-4326

Pat McCracken OIRP (405) 522-1017

RE:  

APA WF 11-14

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org

The proposed policy is  Permanent .  This proposal will go to the Commission meeting on

CHAPTER 40. CHILD CARE SERVICES

Subchapter 7. Eligibility

OAC 340:40-7-8 [AMENDED]

OAC 340:40-7-11 [AMENDED]

OAC 340:40-7-13 [INSTRUCTIONS TO STAFF REVISED]

SUMMARY:The proposed revisions to Subchapter 7 of Chapter 40 amend rules to: (1) clarify how minimum wage is determined and actions taken when the client earns less than minimum wage; (2) clarify allowances included in military pay are counted as earned income; (3) define who is considered self-employed; (4) add clarifying language regarding self-employment income calculations; (5) add clarifying language regarding examples of on-the-job training; and (6) other clarifying language.

340:40-7-8 is amended to: (1) clarify how minimum wage is determined and actions taken when the client earns less than minimum wage; and (2) add other clarifying language.

340:40-7-11 is amended to: (1) clarify allowances included in military pay are counted as earned income; (2) define who is considered self-employed; (3) add clarifying language regarding self-employment income calculations; and (4) add clarifying language regarding examples of on-the-job training.

340:40-7-13 Instructions to Staff is amended to refer to another policy Section for calculation of self-employment income.

 

PERMANENT RULEMAKING APPROVAL IS REQUESTED.

 

LEGAL AUTHORITY:Commission for Human Services, Article XXV, Sections 2 and 4 of the Oklahoma Constitution; and Section 98.16 and 98.20 of Title 45 of the Code of Federal Regulations (CFR).

Rule Impact Statement

To:Programs administrator

Office of Intergovernmental Relations and Policy

From:Mary Stalnaker, Division Administrator

Family Support Services Division, Child Care Subsidy

Date:January 18, 2012

Re:CHAPTER 40. CHILD CARE SERVICES

Subchapter 7.Eligibility

OAC 340:40-7-8 [AMENDED]

OAC 340:40-7-11 [AMENDED]

(Reference APA WF 11-14)

Contact:Laura Brown405-521-4396

A.Brief description of the purpose of the proposed rule:

Purpose.The proposed revisions to Subchapter 7 of Chapter 40 amend the rules to: (1) clarify how minimum wage is determined and actions taken when the client earns less than minimum wage; (2) clarify allowances included in military pay are counted as earned income; (3) define who is considered self-employed; (4) add clarifying language regarding self-employment income calculations; (5) add clarifying language regarding examples of on-the-job training; and (6) other clarifying language.

Strategic Plan impact. The proposed rules achieve OKDHS goal of continuously improving systems and processes to achieve OKDHS goals.

Substantive changes.

340:40-7-8 is amended to: (1) clarify how minimum wage is determined and actions taken when the client earns less than minimum wage; and (2) add other clarifying language.

340:40-7-11 is amended to: (1) clarify allowances included in military pay are counted as earned income; (2) define who is considered self-employed; (3) add clarifying language regarding self-employment income calculations; and (4) add clarifying language regarding examples of on-the-job training.

Reasons. The reasons for the proposed revisions are to provide clear and concise rules for OKDHS staff and clients to ensure benefits are issued properly and in an efficient manner and to better align Child Care Subsidy Program and SNAP Program rules..

Repercussions. If the proposed revisions are not implemented, benefits may not be issued as efficiently, eligibility determination will not be simplified, and the transition to OKDHS Live may be more difficult.

Legal authority. Commission for Human Services, Article XXV, Sections 2 and 4 of the Oklahoma Constitution; and Section 98.16 and 98.20 of Title 45 of the Code of Federal Regulations (CFR).

Permanent approval. Permanent rulemaking approval is requested.

B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed rules are:OKDHS staff and clients receiving subsidized child care benefits, and persons who have child care contracts or plan to obtain child care contracts.The affected classes of persons will bear no costs associated with implementation of the rules.

C.A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are: OKDHS staff and clients receiving subsidized child care benefits, and persons who have child care contracts or plan to obtain child care contracts.

D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each fee change: The revised rules do not have an economic impact on the affected entities. There are no fee changes associated with the revised rules.

E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20, list all costs associated with rulemaking. The revised rules will result in enhanced delivery of services to positively impact clients, families and child care providers.

F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.

G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.

H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rules.

I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rule revisions simplify and clarify eligibility rules which facilitates quicker benefit delivery and may reduce risks to children’s health, safety, and environment.

J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented: The determination of the initial and continuing eligibility may be hindered if the proposed rules are not implemented since the rules clarify language that facilitates the delivery of benefits and services to persons who are need.

K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared August 29, 2011. Modified December28, 2011.

SUBCHAPTER 7. ELIGIBILITY

340:40-7-8. Defining the need factor for child care benefits

Revised 6-1-11 6-1-12

(a) Employment.Employment means the parent or the caretaker earns wages for work performed.¢ 1

(1) The client must provide proof of his or her work hours.If When the client has the flexibility to set his or her own work hours, the client and worker jointly determine if they can reduce the number of hours the child needs care by rearranging the client's work schedule.This is especially important in two-parent or two-caretaker families.¢ 2

(2) The worker limits approval of child care to the number of days and hours the client is working plus reasonable travel time.In two-parent or two-caretaker working families, the worker limits approval to the days and hours they are both working at the same time plus reasonable travel time.When the child attends school or Head Start during part of the work hours, the worker reduces the number of hours he or she approves child care accordingly.

(3) When the caretaker who is legally and financially responsible for the child or Unless the client is an adoptive parent who meets criteria per OAC 340:40-7-12(6) or a caretaker not legally and financially responsible for the child per OAC 340:40-7-6(a)(6), the parent is not making client must make at least minimum wage for the number of hours he or she is working, the worker may limit the number of days and hours of care initially approved with one exception referred to as the minimum wage rule, in order to meet the employment need factor, with the exception of circumstances in (D).The exception to a parent not meeting the minimum wage rule is when care is approved for an adopted child who meets criteria at OAC 340:40-7-12(6).When the minimum wage rule applies, the worker counsels with the person regarding increasing his or her income.If counseling is unsuccessful, the worker decides whether to further reduce or terminate the subsidized child care benefits.¢ 3

(A) Minimum wage is determined by the federal government.

(B) To determine whether the client makes minimum wage when the client:

(i) works for an employer, is not considered self-employed, and the pay information does not show the client's hourly rate of pay, the worker divides the number of hours the client works from the gross pay for the pay periods used to calculate income; or

(ii) is considered self-employed per OAC 340:40-7-11(b)(2), the worker divides the number of hours the client works by the net pay after applicable business expenses, when declared, for the pay periods used to calculate income.When the client and spouse are self-employed in the same business, the worker adds their work hours together and then divides the work hours from the net pay for the pay periods used to calculate income.

(C) When the client works for an employer, whether considered self-employed or not per OAC 340:7-11(b)(2), is paid a set wage less than minimum wage, and the employer refuses to begin paying at least minimum wage, the worker denies or closes child care benefits. ¢ 3

(D) When the client works for him or herself or works for an employer who pays wages based on commission or other performance measures rather than a set wage, is not making at least minimum wage, and the client has been performing this work:

(i) less than one year, the worker counsels with the client to develop a plan for increasing his or her income within three to six months.¢ 4When the client does not cooperate in developing a plan or does not agree to implement the plan that was developed, the worker closes or denies the child care benefit.¢ 5

(I) When the client's income increases to at least minimum wage during this time frame, no further monitoring is needed until the next review.

(II) When after three to six months the client's income increases, but is still less than minimum wage, the worker may approve an additional three to six months of care, if after evaluating the client's circumstances, such as how well the client followed the plan, the rate at which income has increased, and whether modifications can be made to increase income, it is reasonable to presume the client will make at least minimum wage during this time frame.¢ 6

(III) When it is not reasonable to presume the client's income will increase to at least minimum wage within three to six months, the worker closes the child care benefit;¢ 6 or

(ii) at least one year without any substantial change, the worker denies or closes the child care subsidy benefit. ¢ 7

(4) A person employed and working from his or her own home may be approved for subsidized child care benefits in an out-of-home child care home or center.¢ 48

(5) Subsidized child care benefits can be approved for sleep time during the day when a parent or caretaker works night hours and a feasible alternative is used at no cost to the Oklahoma Department of Human Services (OKDHS) during the night working hours.Night working hours are defined as the hours between 11:00 p.m. and 7:00 a.m.¢ 59

(A) The maximum amount of time the worker approves child care allows the client eight hours of sleep plus travel time to and from the child care provider.

(B) In two-parent or two-caretaker families care may only be approved for this reason when both parents have night time jobs or when one parent has a night time job and the other parent or caretaker works during the day while the other parent is sleeping.

(6) Job search meets the definition of employment and child care may be approved for a single or two parent or caretaker household only when a recipient client who has received subsidized child care benefits for at least 30 calendar days loses employment or successfully completes a formal education or training program and requests child care to look for a job.¢ 610

(A) Child care may be approved for a maximum of 30 calendar days from the date the client loses employment or successfully completes a formal education or training program as long as the child continues to attend the same child care facility.

(i) Job search may be approved no more than twice per calendar year.

(ii) The client must have been employed or going to school for at least 90 calendar days between approval periods.

(B) When the recipient client reports a new job within the job search period and provides all required verification to prove continued eligibility, a new application is not needed.When the recipient client does not report a new job or required verification within the job search period, he or she must complete a new application before being approved for further child care.¢ 711

(b) Training.A training program is defined as a course of study that when completed qualifies a person to meet requirements for a job that the client could not have obtained without the certificate of completion, accreditation, or licensure.¢ 812 Child care can be approved for one parent or caretaker to attend a training program.In two-parent or two-caretaker families, the other parent or caretaker must be employed during the same hours.

(1) The training program must qualify to receive federal financial aid from the United States Department of Education (USDE) or other federal or state education funds.¢ 913

(2) Prior to approval for child care, the client must provide proof of enrollment, the days and hours the client will be attending, and when he or she is expected to complete the program.¢ 1014

(3) The program must require classroom attendance on a school campus with an instructor present.Care is only approved for an on-line Internet based course or televised course if when it is a live broadcast conducted by an instructor and attendance is required while the program is being broadcast.If When the program is self-paced and can be completed whenever the client chooses is able to choose his or her own school hours, care is not approved.¢ 1115

(4) The client must provide proof of progress when requested.If When the client is not making satisfactory progress, further child care for this reason is not approved.¢ 1216

(5) Once the client completes a training program, further child care is not approved for training or education.The client is expected to look for jobs that require his or her training credentials.The client may be eligible for subsidized child care benefits to job search if when he or she meets requirements at (a)(6) of this Section.

(6) In certain circumstances, the worker may approve child care benefits for a client to attend a second training program.The client must have been employed in a job requiring the training credentials he or she has for at least 12 months.¢ 1317Possible circumstances include when:

(A) the client can no longer perform the job he or she is trained to do because of physical or mental health reasons.In this instance, the client must provide a statement from a doctor, mental health professional, or a vocational rehabilitation professional verifying the reason.The professional must also state that the client is capable of performing the job tasks of the training program where the client wants to enroll;

(B) there is no longer a demand for the type of work the person is trained to do.The client must provide a statement from a professional working with the client to obtain employment stating there is no demand.The professional must be employed by the Workforce Oklahoma Center, a Workforce Investment Act (WIA) contracted entity, the Oklahoma Employment Security Commission (OESC), or the Oklahoma Department of Rehabilitation Services (DRS); or

(C) the client can establish receipt of the additional training will increase the person's earning potential.The client must provide proof the starting salary for a person with the training credentials the client wants to obtain is higher than he or she is currently earning.

(c) Education program.An education program can may include:

(1) High school.Child care may be approved for one or both parents or caretakers to attend high school.It is not approved for a parent or caretaker to receive homebound instruction.Prior to approval the client must provide proof that he or she is enrolled, the days and hours the client is attending, and when he or she is expected to graduate.

(2) General Educational Development (GED), literacy, or adult basic education (ABE) classes.The program must require classroom attendance with an instructor present. Child care may be approved for one parent or caretaker to attend GED, literacy, or ABE classes.However, in two-parent or two-caretaker families, the other parent or caretaker must be employed during the same hours.

(A) The client must provide proof of enrollment, the days and hours the client is attending, and the length of the class prior to care approval.If When the class has open enrollment and no established end date, the client must provide proof of progress and how it is measured.

(B) Within the first month of classes, the client must provide proof of initial testing showing the client's education and/or literacy level.

C) The worker reviews the client's progress when the class is expected to end prior to approval for further child care for this reason.If When the class is open-ended, the worker reviews progress no later than 12 months from the date care was approved for this reason.¢ 1418At review, the client must provide a statement from the school that includes:

(i) whether the client is attending regularly;

(ii) whether the client is making satisfactory progress;

(iii) an estimated length of time it will take to complete the program; and

(iv) what days and hours the client is currently attending classes.

(D) If When the client has not been attending regularly or making satisfactory progress, further child care for this reason is not approved.

(3) English as a Second Language (ESL) classes.The program must require classroom attendance with an instructor present.Child care may be approved for a single parent or caretaker to attend ESL classes when the client lacks proficiency in understanding, speaking, reading, or writing the English language.In two‑parent or two-caretaker families, the other parent or caretaker must be employed during the same hours.

(A) The client must provide proof of enrollment, the days and hours the client is attending, and the length of the class prior to care being approved.If When the class has open enrollment and no established end date, the client must provide proof of how often progress is measured.

(B) The worker reviews the client's progress when the class is expected to end prior to approval for further care for this reason.If When the class is open-ended, the worker reviews progress no later than 12 months from the date care was approved for this reason.¢ 1418The client must provide a statement from the school that includes:

(i) whether the client is attending regularly;

(ii) whether the client is making satisfactory progress;

(iii) an estimated length of time it will take to complete the program; and

(iv) what days and hours the client is currently attending.

(C) If When the client has not been attending regularly or making satisfactory progress, further care for this reason is not approved.

(4) Formal education program.A formal education program is defined as a course of study that leads to the attainment of an associate or bachelor's degree.Child care can be approved for one parent or caretaker to attend a formal education program and to participate in activities required to maintain a scholarship.Only required scholarship activities for scholarships disbursed through the school's financial aid office qualify for child care.In two-parent or two-caretaker families, the other parent or caretaker must be employed during the same hours.

(A) The formal education program must qualify to receive federal financial aid from USDE or other federal or state education funds.¢ 913

(B) Prior to approval for child care, the client must provide proof of enrollment, the days and hours the client is attending school or participating in activities required to maintain a scholarship, and when he or she is expected to complete the degree.¢ 1014

(C) The degree program must require classroom attendance on the school campus with an instructor present.Care is only approved for an on-line Internet based course or a televised course if when it is a live broadcast conducted by an instructor and attendance is required while the program is being broadcast.If When the program is self-paced and can be completed whenever the client chooses, care is not approved.¢ 1115

(D) The client must provide proof of progress when requested.If When the client is not making satisfactory progress, further care for this reason is not approved.¢ 1216

(E) Once the client completes a bachelor's degree, further care is not approved for training or education.The client is expected to look for jobs that require a degree.The client may be eligible for subsidized child care benefits to job search if when he or she meets requirements at (a)(6) of this Section.

(F) In certain circumstances, the worker may approve subsidized child care benefits for a client to obtain a different bachelor's degree.The client must first have been employed in a job that required the degree he or she already has for at least 12 months.¢ 1317Possible circumstances include when:

(i) the client can no longer perform the job he or she is trained to do because of physical or mental health reasons.In this instance, the client must provide a statement from a doctor, mental health professional, or a vocational rehabilitation professional that verifies the reason.The professional must also state that the client is capable of performing the job tasks of the degree program in which the client wants to enroll;

(ii) there is no longer a demand for the type of work the person is trained to do.The client must provide a statement from a professional working with the client to obtain employment stating there is no demand.The professional must be employed by the Workforce Oklahoma Center, a WIA contracted entity, OESC, or DRS; or

(iii) the client can establish receipt of the second degree may increase the person's earning potential. The client must provide proof that the starting salary for a person with the degree the client wants to obtain is higher than he or she is currently earning.

(d) Temporary Assistance for Needy Families (TANF) Work activity.When a client receives a TANF benefit, subsidized child care benefits may be provided for any activity outlined on the client's Form 08TW002E, TANF Work/Personal Responsibility Agreement, per OAC 340:10-2-1.¢ 1519

(1) Need for child care is also met when the person is waiting to enter an approved TANF Work activity.Approval is limited to a time period not to exceed:

(A) two weeks; or

(B) one month on an exception basis where child care arrangements or other services would otherwise be lost and the subsequent activity is scheduled to begin within that period.¢ 1620

(2) TANF applicants referred for immediate employment may be approved for subsidized child care benefits to job search.¢ 1721 TANF applicants are advised:

(A) child care to job search is limited to 20 days that must be used within 30 calendar days from the date of request;

(B) in-home child care arrangements are not available for TANF applicants;

(C) child care may only be used during the times the applicant is actually looking for a job; and

(D) he or she must notify the worker immediately upon securing employment.

(e) Protective or preventive child care.Subsidized protective or preventive child care benefits may be used as an early intervention strategy in certain critical situations to help prevent neglect, abuse, or exploitation of a child.The worker may approve child care in these situations to help stabilize the family situation or enhance family functioning.In most instances, Child Welfare (CW) staff completes protective or preventive child care requests when they are working with the family and recommending protective or preventive child care.When CW staff contracts with an outside agency to provide protective or preventive services and child care is recommended, Family Support Services (FSS) staff completes the child care requests with help from contracted agency staff.¢ 1822

(1) Subsidized protective or preventive child care benefits are temporary and planning to reduce or eliminate the need for such child care begins at the initial contact.

(2) The worker must complete a face-to-face interview with the client prior to approving subsidized protective or preventive child care benefits in order to better assess all of the service needs of the family.

(3) The client must provide a statement from a professional working with the family stating:¢ 1923

(A) the reason child care is recommended;

(B) how placing the child in a child care facility helps to prevent neglect, abuse, or exploitation of the child; and

(C) the length of time this care is expected to be needed.

(4) The family may or may not be expected to help in paying the cost of these subsidized child care benefits depending on the unique circumstances of the family.¢ 2024

(5) In certain circumstances, families who are financially ineligible for subsidized child care benefits may be approved for protective or preventive child care benefits when the child is in danger of neglect, abuse, or exploitation.The client must provide evidence the family is so burdened by debt that the additional financial pressure of paying for child care may result in further deterioration of family stability and functioning.The client must also provide a plan for reducing his or her debt.¢ 2125

(6) The worker may approve subsidized protective or preventive child care benefits for a maximum of 30 calendar days. If When determining ongoing eligibility will take time, the worker may approve child care while the parent or caretaker is gathering necessary information during this 30 calendar day period.

(7) If When the family requests subsidized protective or preventive child care benefits beyond this initial 30 calendar day period, the worker sends a memo and supporting documentation to the Family Support Services Division (FSSD) Child Care Subsidy Section staff to request an extension.The client must provide all needed eligibility information prior to submission of the extension request.¢ 2226

(f) Enrichment. The purpose of subsidized enrichment child care benefits is to assist a child receiving Supplemental Security Income (SSI) to develop socialization skills and to transition into a group setting, such as a classroom.If When a child is not receiving SSI benefits, the child is not eligible for subsidized enrichment child care benefits.

(1) The need for subsidized enrichment child care benefits is based solely on the needs of the child's condition of delay or disability rather than on the activities of the parent or caretaker.¢ 2327

(2) Child care for enrichment is limited to a maximum of two days per week not to exceed ten full-time or part-time days per month.

(3) The parent or caretaker must provide a written recommendation from a professional who is working directly with the child in some capacity that states how child care would be beneficial to the child.The professional could be the child's doctor, occupational therapist, physical therapist, or special education teacher.

(4) Enrichment child care is only approved for a child who has not started school or Head Start unless, due to the child's disabilities, the child receives instruction from a teacher in his or her home.¢ 2428

(5) When subsidized enrichment child care benefits are approved, care must be provided outside of the child's home and at least one other child must attend during the same hours.

(6) The worker obtains approval from staff in the FSSD Child Care Subsidy Section prior to authorizing care for this need factor.¢ 2529

INSTRUCTIONS TO STAFF 340:40-7-8

Revised 8-1-11 6-1-12

1.(a) Some clients work at jobs where they are paid at least minimum wage, but the Oklahoma Department of Human Services (OKDHS) does not count the income because the income comes from exempt sources per OAC 340:40-7-12.The client still meets the employment need factor even though the income is not counted.

(b) Some clients work where they are not guaranteed any wage, such as working for commission only or self-employment.In these situations the worker does not approve more than 30 days of care until the client provides proof he or she has earned income from this employment.

(c) Bartering for services in exchange for work performed does not meet the definition of need because of employment.Examples of bartering include working in exchange for payment of rent, utilities, or a car payment.

(d) Gambling does not meet the definition of need because of self-employment.

2.(a) Proof may be a copy of the work schedule showing the client's name and the name of the business or a signed statement from the employer.A written statement is preferable, but if when unavailable, the worker may confirm the client's work hours with the employer by telephone.The worker documents how work hours were verified in the Family Assistance/Client Services (FACS) Case Notes.

(b) If When part of the client's work duties involves staying overnight away from home or working split shifts, the worker uses his or her judgment to determine how much care is reasonable to approve.

(c) When the client starts working, the worker approves the maximum number of days and hours the client could work.For instance, an employer statement might say the client works three to five days per week.The worker initially approves 23 days per month of care.The worker reevaluates the amount of care approved when actual pay is requested at 90 days per OAC 340:40-7-13.Care may be reduced or increased depending on how many days and hours the client actually worked during that period.

(d) If When the client has been employed for at least 30 calendar days, the worker evaluates the actual number of days and hours the client worked to determine how much care to approve, unless there is reason to expect the work schedule to change.The worker documents in the Child Care tab and FACS Case Notes how he or she determined the care plan approved.

(e) Clients who have the flexibility to set their own work hours are most often self-employed.When the client is self-employed, the worker may accept his or her statement regarding work hours as long as it appears reasonable and meets the minimum wage requirement per OAC 340:40-7-8(a)(3).If When the children are attending school or Head Start, in most instances, it is usually reasonable to expect the client to work during those hours.If When it is not reasonable, FACS Case Notes must clearly document why.When child care is requested in two-parent or two-caretaker families for self-employment, care must be taken to determine whether self-employment work hours could be adjusted to reduce or eliminate the need for child care.For instance, could they each work a different schedule?

3.(a) When the client is considered self-employed based on the definition at OAC 340:40-7-11 Instructions to Staff #2, the worker uses net income after deducting business expenses, if business expenses are declared, to determine whether the client meets the minimum wage rule.

(b) The worker uses his or her judgment to decide how many hours of care to initially approve after counseling with the client on how he or she plans to increase his or her income to at least minimum wage.The worker refers the client to the Oklahoma Department of Labor (ODOL) to file a complaint when the employer is not paying minimum wage.

4.(c)(a) Counseling may include:

(1) helping the client determine whether this is the best field of employment;

(2) referring the client to the Oklahoma Employment Security Commission (OESC) for help in locating other employment;

(3) helping the client develop an action plan to increase income from the enterprise earnings;

(4) referring the client to a local resource that helps with small business planning.Most technology centers offer this type of service; or

(5) referring the client to the Oklahoma Department of Labor (ODOL) to file a complaint if his or her employer is not paying minimum wage.

(d) If the client has been employed in the same business for at least one year without any substantial changes and is not making at least minimum wage, child care is denied or closed.When substantial changes occur, including illness, change in business location, or unforeseen circumstances, the worker sends an e‑mail to daycare@OKDHS.org for guidance.

(e)(b) The worker and client decide jointly what strategy plan to use implement to increase the client's income, and by what date this plan can be accomplished or progress made, and when to reevaluate the plan.If the client does not cooperate in making an action plan to increase income or in following through with the plan he or she agreed to try, child care for this employment enterprise may be reduced or terminated.The worker consults with his or her supervisor before taking such action closing or denying benefits.

(f)(c) The worker clearly documents in FACS Case Notes how he or she initially determined the child care plan hours approved, what strategy plan the client agreed to follow to increase income during counseling, and why any subsequent changes are made to the child care plan.

5.The worker consults with his or her supervisor before closing or denying benefits and documents the discussion in FACS Case Notes.

6.The worker must document in FACS Case Notes:

(1) income calculations used to arrive at current pay rate;

(2) what parts of the plan were implemented;

(3) why the client thinks he or she did not reach minimum wage; and

(4) the reasoning used to decide whether to close or approve further benefits.

7.When substantial changes occur such as illness, a change in business location, or unforeseen circumstances, the worker sends an email to daycare@okdhs.org for guidance before taking action.

48.(a) When the client works from home, the worker must determine how flexible the client's work hours are and whether other options are available instead of subsidized child care benefits.Child care is not approved if when the client is able to do the work while the child is in the home or the child is school age and the work can be done while the child is at school.The worker documents all details of the client's situation and what decision was made in FACS Case Notes.

(b) When the client is operating a child care home, the worker only approves child care in an out-of-home child care home or center if when the client's own child places him or her over maximum licensed capacity.

(1) A family child care home provides care for seven or fewer children.

(2) Large family child care homes provide care for eight to 12 children.

(3) The provider's own children younger than five years of age count toward licensed capacity.

(4) The worker consults with Oklahoma Child Care Services (OCCS) licensing staff to establish whether a client, who is a child care provider, will be over capacity if when his or her own child remains in the home and documents this discussion in FACS Case Notes.Refer to OAC 340:110-3-84 and 340:110-3-97.1 for licensing guidelines.

59.(a) Sleep time child care is approved for working families only.Care cannot be is not approved for two-parent or two-caretaker families in order for one parent to go to school during the day.

(b) The goal of this policy is to allow a parent or caretaker to get seven to eight hours of sleep.The maximum care is not approved when the client has the opportunity to sleep during some of the child's sleep hours.For example, when a parent or caretaker's work schedule is from 10:00 p.m. to 4:00 a.m., eight hours of care is not approved since the parent or caretaker can sleep for three to four hours before the child wakes up.

610.(a) Job search is approved for recipients clients who have received a child care benefit for at least 30 calendar days in order to ensure that the services of the child care provider are not lost and continuity of care for the child is provided while the parent or caretaker attempts to locate a job.Care is only continued when the child remains at the same child care facility for the entire 30 calendar days job search is approved.If When the client wishes to change child care providers, care by a different provider is not approved to job search.

(b) To approve a client to job search, the worker closes the current authorization using the reason code "30 day job search time frame has ended."The end date entered on the authorization is 30 calendar days from the time the client lost employment or successfully completed a formal education or training program.

(c) The worker makes changes as needed to the income shown for the family and to the family share co‑payment prior to closing the authorization.No change is made to the days and hours of care.

(d) If When the authorization is closed on another reason code prior to offering child care to search for a job, it may be reopened to cover this 30 calendar day period.The authorization is then closed using the reason code "30 day job search time frame has ended."

(e) If When the authorization is closed on another reason code prior to offering child care to search for a job, it may be reopened to cover this 30 calendar day period.The authorization is then closed using the reason code "30 day job search time frame has ended."

(f) When the client does not report the loss of employment or completion of a formal education or training program within ten calendar days but continues to use child care, the worker asks the client whether he or she is searching for a job.

(1) When the client is searching for a job, the worker closes the authorization effective the date job search would have ended if the client had notified the worker timely or effective ten calendar days from the date the worker takes action, whichever date is greater.

(2) When the client does not plan to job search, the worker closes the authorization effective ten calendar days from the date the worker takes action.

(3) If When the client uses care beyond the time frame that the client could have been approved to job search, the worker sends an overpayment memo to the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section per OAC 340:40-15-1.

711.(a) If When the client begins an activity that meets a need factor during the time frame job search was approved, documentation must be provided and entered in case notes.The worker enters a new authorization in FACS with a begin date effective the day after the job search closure.If When more care is required for the new activity during the time frame job search was approved, the worker contacts the FSSD Child Care Subsidy Section staff to change the authorization because the worker cannot make a change to a closed authorization.

(b) If When the client begins an activity that meets a need factor within 30 calendar days after the job search period ended, documentation must be provided and entered in case notes.The worker enters a new authorization in FACS and the begin date is the date verification is provided.

812.(a) If When the client receives Temporary Assistance for Needy Families (TANF) and the training is approved as a TANF Work activity per OAC 340:10-2-1, child care may be approved.

(b) If When the client is participating in a TANF Special Project but is not receiving TANF benefits, the Special Project must meet the requirements for an approved training program.If When the Special Project does not meet the requirements,, it does not meet a need factor for child care assistance.

(c) Examples of questionable programs could be programs for nurse's aides, data entry clerks, or cashiers.If When the worker questions whether a particular training program will make a person more employable, he or she may:

(1) check with employers in the area that employ people with this skill to see if they require such a certificate, accreditation, or license.If When they do not require one, but would pay more if when the person had this credential, the worker approves child care for this training;

(2) contact a Work Investment Act (WIA) counselor or an OESC employee to determine if when a person must meet general training requirements prior to becoming employed in this field; or

(3) require that the client provide documentation showing how this training program can help the client become more employable.

(d) On-the-job training and apprenticeship programs pay participants at least minimum wage for their work or training hours so care for this reason may be approved under the employment need factor.

913.If When the client is not receiving financial aid and the school is not known by the worker to be eligible to disburse federal or state educational funds, the worker calls the school for confirmation.

1014.(a) The worker verifies what days and hours the client attends school by obtaining a copy of the client's training or class schedule, documentation from the school showing the client's schedule, or by calling and verifying the schedule with school officials.Child care is limited to actual classroom attendance, including travel time.

(b) Child care may also be approved for activities outside the classroom required to pass the course, such as internship and practicum placements, volunteer hours required to pass a specific class, or other required activities.

(c) Child care may be approved for activities outside the classroom required to maintain a scholarship, such as athletic practice sessions, participation at sporting events, band practice, volunteer activities, or other required activities.The worker verifies the scholarship by obtaining a:

(1) copy of the report from the registrar showing the scholarship disbursement and hours enrolled or documentation from the school's financial aid office showing proof of the scholarship; and

(2) letter from the scholarship grantor explaining the activities, including days and times for participation required to maintain the scholarship.

(d) If When the client is required to attend a lab in order to pass a specific class, an instructor must be present during the lab or child care is not approved for those hours.Hours spent by a student in a computer lab on an as needed basis to complete homework assignments are not approved even when a school official is present to help with technical difficulties regarding the equipment.

(e) When there are gaps in class times, the worker may approve child care beginning with the first class of the day through the last class of the day.Additional study time is never approved unless it is an approved TANF Work activity.Refer to OAC 340:40-7-8(d).

1115.Child care may only be approved for televised courses if when the client must view the training during the broadcast because class participation is required.If When the client can view the video of the broadcast whenever it is convenient, care is not approved for those hours.

1216.The worker sets a reminder to check on the client's school status if when the client's care needs are expected to change or he or she is expected to graduate prior to an annual review.If When the client states he or she is still attending school, the client must provide a statement from the school verifying that he or she is making satisfactory progress, the reason he or she has not finished the program, and a current class schedule.

1317.The intent of the work requirement is for the client to gain work experience and to make use of the training he or she has already received.If When special circumstances exist that make this requirement unreasonable, the worker may send an e-mail email to the Family Support Services Division (FSSD) Child Care Subsidy Section staff at daycare@okdhs.org requesting special approval.If When the request is granted, the worker documents the special circumstances in FACS Case Notes.

1418.The goal is for the client to complete the program as quickly as possible.Once the client has completed one session of classes, it is expected that the school can project how much longer classes are needed.

1519.Child care is limited to the days and hours needed to complete the TANF Work activity plus travel time.

1620.This provision helps ensure continuity of care with the same child care provider so a person can continue the employment process.

1721.The worker approves subsidized child care benefits before expecting the applicant to begin job search.The worker assists the applicant in selecting a licensed, contracted facility.Upon selection of a facility, the authorization is entered into the system in the FACS Eligibility Notebook under the Auth. Daycare tab showing a reason, "for caretaker to search for employment," and a beginning and ending date for the authorization using fields K45 and K47.The ending date is no more than 30 calendar days from the date of request and is approved for a maximum of 20 full-time days.If When the client requests a change of provider during this 30 calendar day period, the worker only approves child care for the number of days remaining in the 30 calendar day period.

1822.(a) When the Child Welfare (CW) worker considers the family at risk for child abuse and or neglect, but the family is not court involved, the CW worker contracts for Comprehensive Home-Based Services (CHBS) with the Oklahoma Children's Services (OCS).When CW is not maintaining an open CW case, the FSSD worker completes the application for subsidized protective or preventive child care benefits.The CHBS case manager assists the family in applying for subsidized child care benefits.If When approved, families receiving CHBS services are approved with a zero family share co-payment.To verify the need for child care, the CHBS case manager provides a written statement to the FSSD worker indicating:

(1) the names and ages of the children for whom child care is needed;

(2) why child care is needed and how it can eliminate or reduce the risk to the children;

(3) what days and hours child care is needed; and

(4) how long the child care is expected to be needed.

(b) If When more than 30 calendar days of care is needed, the FSSD worker completes a short memo requesting that the protective or preventive child care benefits continue to be approved.The worker attaches this memo to the statement provided by the CHBS case manager and sends them to the FSSD Child Care Subsidy Section staff.

(c) In the FACS Eligibility Notebook under the Auth. Daycare tab, enter reason, "prevention of or protection from abuse, neglect, or exploitation," on the authorization.

1923.The professional must be someone currently working with the family in a professional capacity to improve the family's stability or functioning.Examples may include a doctor, counselor, therapist, CW specialist, SoonerStart worker, or CHBS case manager.

2024.(a) The worker documents in the memo why he or she is requesting that a family's normal family share co-payment be reduced or eliminated and how the family plans to increase its responsibility toward paying the family share co-payment in the future.

(b) Families for whom protective or preventive child care is requested by a CHBS case manager are approved with a zero co-payment.

(c) If When the family is receiving other FSSD benefits and income is considered for those other benefits, the worker diverts the income in the Child Care tab of FACS, "total diverted income" field E47.

2125.The worker might may help the client develop a budget that decreases the debt or refer the client to Consumer Credit Counseling or another local resource for help.This plan is included in the memo.

2226.(a) The worker sends a memo to FSSD Child Care Subsidy Section staff requesting an extension.The worker attaches to the memo any verification supporting the need for child care.For most protective or preventive extension requests, the memo must include:

(1) names and ages of all children for whom child care is needed;

(2) an explanation of the reason child care is needed, the circumstances leading to the conclusion the child is at risk of neglect, abuse, or exploitation, and how child care can eliminate or substantially reduce risk to the child;

(3) an explanation of whether a CW referral was made and, if not, the reason, as well as any coordination efforts between FSSD, CW staff, and any other community partners;

(4) the days and hours child care is requested for each child;

(5) an explanation of the support system available to the family;

(6) an explanation of the exploration of any free alternative to child care.Examples include the availability of other family members, Head Start, and Mother's Day Out programs;

(7) the length of time child care is needed;

(8) an explanation of what, if any, family share co-payment the family is expected to contribute.If When the family share co-payment is reduced or completely waived because of family expenses, an explanation of the plan to decrease the debt is included in the memo; and

(9) the worker's opinion about the need for child care.

(b) FSSD Child Care Subsidy Section staff typically approves protective or preventive requests for no more than six months at a time.When an extension is requested beyond the original time frame approved by FSSD, the worker sends a new memo that includes more detail showing what efforts were made to reduce or eliminate the need for protective or preventive child care.Refer to OAC 340:40-9-1(d) for interview requirements.

(c) In the FACS Eligibility Notebook under the Auth. Daycare tab enter reason, "prevention of or protection from abuse, neglect, or exploitation," on the authorization.

2327. Enrichment child care is not approved if when the parent or caretaker meets another need factor.

2428.The client must provide documentation from the school verifying the child is unable to attend class.The worker enters what documentation was provided in case notes.

2529.(a) The worker sends or faxes a memo and a copy of the written documentation provided by the client from a professional who is working directly with the child to the Family Support Services Division (FSSD) Child Care Subsidy Section staff for approval.The memo includes:

(1) why enrichment child care is recommended for the child;

(2) whether the child has available another way to become socialized, such as participation in a play group with other children, special education services through the local school system, Early Head Start, or Head Start; and

(3) the name of the child care facility the child plans to attend.

(b) FSSD Child Care Subsidy Section staff reviews the memo and documentation and sends a memo or e-mail email to the worker stating whether care is approved or denied.If When approved, care is authorized for no more than six months at a time.

(c) The worker enters the approval or denial in the FACS Eligibility Notebook, Auth. Daycare tab.The worker enters as the reason "enrichment, supervision, training, or to avoid institutionalization."

(d) Refer to OAC 340:40-7-3.1 for information about the approval process for the higher special needs rate unit type.

340:40-7-11. Sources of income considered

Revised 6-1-116-1-12

(a) Sources of income considered. Income may be received periodically or at irregular intervals.All income, unless specifically excluded per OAC 340:40-7-12, is considered in determining monthly gross income.Income is classified as earned or unearned income.Gross income is treated the same for both types of income.¢ 1

(b) Earned income.Earned income means total money earned by a person through the receipt of wages, salary, commission, or profit from activities in which the person is engaged as self-employed or as an employee.¢ 2 Temporary disability insurance payment(s) and temporary worker's compensation payments are considered as earned income if when payments are employer funded and the person remains employed.

(1) Wages.Wages include total money received earned for work performed as an employee including armed forces pay, commissions, tips, piece-rate payments, longevity payments, and cash bonuses before any deductions are made, such as taxes, bonds, pensions, union dues, credit union payments, and cafeteria plans.¢ 3

(A) Countable wages for military personnel include Variable Housing Allowance (VHA), Basic Allowance for Quarters (BAQ), and any allowance included on the earnings statement, such as the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS).

(B) Only the portion of the cafeteria plan the client controls is counted as income.¢ 4

(C) Reimbursements for expenses, such as a uniform allowance or transportation costs, other than daily commuting, are subtracted from gross income.

(D) Payments made for annual leave, sick leave, or severance pay are considered earned income during the month such income is received whether paid during employment or at termination of employment.

(E) Wages that are garnisheed or diverted and paid to a third party are also counted as income.

(2) Self-employment.Earnings derived from a business enterprise owned solely or in part by the person are considered self-employment Self-employment income is considered based on procedures listed in this subsection¢ 5

(A) Persons considered self-employed.  A person is considered self-employed when:

(i) he or she declares him or herself to be self-employed;

(ii) there is an employer/employee relationship and the employer does not withhold income taxes or Federal Insurance Contributions Act (FICA), even when required to do so by law; or

(iii) the employer withholds taxes and the person provides proof he or she files taxes as self-employed.

(A)(B)Records used and income calculation.The worker uses the records described in (i) through (iii) of this subparagraph to calculate income.When the person reports a loss instead of a profit on the business, the worker does not deduct the loss from other household income.

(i) If When the person filed a federal income tax return for self-employment income for the most recent year, whether the person's income is derived from his or her own business or from working for an employer, the worker uses the net self-employment income shown on the person's federal income tax return and divides the income by 12 or the number of months the business has been in existence or the person started work for the employer, if when less than 12 months.The worker verifies the person's start date with the employer when the person states he or she has not worked for the employer for at least 12 months.

(ii) If When the person did not file an income tax return for the most recent tax year for his or her own business, the worker calculates self-employment income using the person's business records for the last 12 months or the number of months the business has been in existence if when less than 12 months.If When the client declares he or she has business expenses, the worker subtracts 50% of the gross self-employment income to arrive at the net profit.

(iii) When the person reports a loss instead of a profit on the business, the worker does not deduct the loss from other household income. When the person works for an employer, did not file a federal tax return as self-employed, and receives earnings from an employer, the person must provide proof of the last 12 months of income from the employerThe worker divides thegross income by 12 or the number of months the person has worked for the employer to determine monthly income.When the person declares he or she has business expenses, the worker subtracts 50% of the gross self-employment income before dividing the income by the applicable number of months to determine monthly income.

(B)(C)Profit sharing.Households who operate S corporations, general or limited partnerships, or limited liability companies may receive profit sharing that is reported on the household's personal income tax return.When a household member:

(i) actively participates in the operations, the income from profit sharing is considered part of the household's self-employed earned income; or

(ii) does not actively participate in the operations, the income from profit sharing is considered part of the household's unearned income.

(C)(D) Monthly self-employment income.Self-employment income received on a monthly basis is normally averaged over a 12-month period.If When the averaged amount does not accurately reflect the household's actual monthly circumstances because the household has experienced a substantial increase or decrease in income, the worker calculates the self-employment income based on anticipated earnings.¢ 6

(D)(E) Seasonal self-employment.Self-employment income intended to meet the household's needs for only part of the year is averaged over the period of time it is intended to cover.¢ 7

(E)(F) Annualized self-employment income.Self-employment income that represents a household's annual support is averaged and annualized over a 12-month period, even if when the income is received in a short time period.

(i) If the averaged annualized amount does not accurately reflect the person's actual monthly circumstances because the person experienced a substantial increase or decrease in income, the worker calculates the self-employment income is based on anticipated earnings, using the business records that reflect the current situation.¢ 6

(ii) The worker does not calculate self-employment income on the basis of prior earnings, such as income tax returns, when an increase or decrease of business has occurred.¢ 6

(I) When the person has received the self-employment income for less than 12 months, the income must be averaged over the applicable number of months and the monthly amount projected for the coming year.

(II) When the person has received the self-employment income for a short time and there is insufficient data to make a reasonable income projection, the worker does not consider income from this source until the review is due.At the review, the worker averages income over the number of months received until a full year's information is available.

(F)(G) Income from rental property.Income from rental property is considered self-employment income.¢ 8

(G)(H) Income from room and board.Payments from roomers or boarders are considered self-employment if when the roomer or boarder is paying a reasonable amount.If When the roomer or boarder is an adult non-relative opposite sex individual (ANROSI), OAC 340:40-7-6(b)(4) applies.¢ 9

(3) On-the-job training.Earned income from regular employment for on-the-job training (OJT) is considered as earned income.This includes OJT provided under Sections 204(b)(1)(c) or 264(c)(1)(A) of the Workforce Investment Act for persons 19 years of age or older.¢ 10

(4) Workforce Investment Act (WIA).Income earned in on-the-job training OJT positions provided under Section 134 of WIA is considered earned income for persons who are 19 years of age and older.On-the-job training provided must be full-time positions, and there must be a contract between WIA and the employer for each individual position.This does not include classroom training and institutional training or intern assignments sponsored by WIA, even when an hourly amount is paid for such training.Refer to OAC 340:40-7-12(24)(G) for other types of excluded WIA income.

(5) Title I payments of Domestic Volunteer Services Act.Payments under Title I of the Domestic Volunteer Services Act of 1973 as amended [P.L. 93-113] are considered income unless they are excluded per OAC 340:40-7-12.

(4) On-the-job training.The worker counts income earned in on-the-job training positions as earned income.This includes on-the-job training provided under Section 204(b)(1)(c) or Section 264(c)(1)(A) of the Workforce Investment Act for persons 19 years of age or older.¢ 5

(6)(6) Earnings of children.Earned income of a minor parent is treated as adult earned income.Earnings of other children 17 years of age and younger who are under the parental control of an adult household member are excluded per OAC 340:40-7-12.¢ 1011

(c) Unearned income.Unearned income is income a person receives for which the person does not put forth any daily, physical labor.Types of income listed in paragraphs (1) through (10) of this subsection are considered unearned income.¢ 1112

(1) Assistance payments.Assistance payments include state means tested programs, such as Temporary Assistance for Needy Families (TANF), including Supported Permanency benefits, State Supplemental Payment (SSP) to the aged, blind, or disabled, and Refugee Resettlement Program (RRP) cash assistance.¢ 1213

(2) Pensions, disability, and Social Security benefits.Annuities, pensions, retirement benefits, disability benefits from either government or private sources, or Social Security survivor benefits are considered unearned income.When a minor child receiving Social Security benefits no longer lives with the payee receiving the Social Security benefits, only the portion of the child's Social Security benefit that is used to meet the minor child's needs is considered income.This may include cash given directly to the minor child or money paid to a third party for room and board for the minor child.The parent or caretaker or, if when appropriate, the minor child must take action to become the payee within 90 calendar days as required at OAC 340:40-7-9(d).If When action is not taken within 90 calendar days, the worker counts the total Social Security benefit as income.

(3) Supplemental Security Income (SSI).SSI is considered unearned income.¢ 1314

(4) Unemployment and workers' compensation.Income from unemployment insurance benefits or workers' compensation is counted as unearned income.

(5) Child support, court-ordered or third party paid child care, and alimony.Child support, child care payments, and alimony payments, whether court-ordered or voluntary, made directly to the household from non-household members are counted as unearned income.¢ 1415

(A) If When a child care payment is paid directly to the child care provider, it is not considered income for the client.

(B) When the absent parent reports he or she is paying a portion of the client's family share co-payment to the child care provider, the only action taken by the worker is to record this in the case record.

(C) If When the absent parent or another third party, such as an employer, is making a payment to the provider in addition to the client's co-payment, it is considered as an additional co-payment that must be met before the Oklahoma Department of Human Services (OKDHS) makes a subsidy payment to the provider.¢ 1516

(D) Any other payment made to a third party for a household expense must be considered as income when a court order directs that the payment be made to the household.Payments for medical support are excluded.

(6) Veterans compensation, pensions, or military allotments.Annuities, pensions, disability compensation, military allotments, servicemen dependent allowances, and similar payments are considered unearned income.¢ 1617

(7) Contributions.Appreciable contributions recurrently received in cash are considered unearned income except when the contribution is not made directly to the recipient client.To be appreciable, a contribution must exceed $30 per calendar quarter per person.

(8) Dividends, interest, minerals, and royalties.Dividends, interest income, income from minerals, royalties, and similar sources are considered unearned income.When income from these sources is received irregularly or in varied amounts, it is averaged over 12 months.Income from royalties is treated as unearned, self‑employment income, subject to (b)(2) of this Section.

(9) Lump sum payments.Recurring lump sum payments, including income from earnings, are averaged over the period they are intended to cover.¢ 1718

(10) Irregular income.Income received irregularly but in excess of $30 per quarter is considered income unless it is from an excluded income source specifically mentioned at OAC 340:40-7-12.Countable irregular income is averaged over 12 months.¢ 1819

INSTRUCTIONS TO STAFF 340:40-7-11

Revised 8-1-11 6-1-12

1.Refer to OAC 340:40-7-12(6) regarding exempting income for certain children adopted through Oklahoma Department of Human Services (OKDHS) when specific conditions are met.

2.(a) If When the client is not making at least minimum wage, refer to OAC 340:40-7-8(a) to determine whether the client meets the need factor for employment.

(b) A person is considered self-employed when:

(1) he or she declares him or herself to be self-employed;

(2) there is an employer/employee relationship and the employer does not withhold income taxes or Federal Insurance Contributions Act (FICA), even if required to do so by law; or

(3) the employer withholds taxes and the person provides proof he or she files taxes as self-employed.

3.(a) Wages are averaged over a minimum of the last 30 calendar days unless these wages are not indicative of future earnings.Refer to OAC 340:40-7-13 for information on computing income.The worker records income information in the Family Assistance/Client Services (FACS) Interview Notebook under the Income tab.

(b) Money allotted for rent and food that may appear on an active military person's pay check is considered part of that person's earned income.

4.If When a person receives a benefit allowance from the person's employer, the worker counts the regular gross earnings plus any excess money left after deducting the insurance cost from the benefit allowance.For example, This may occur when a person:

(1) is given a $300 benefit allowance to purchase insurance and uses the entire amount to purchase the insurance.None of the benefit allowance is counted as income;

(2) is given a $300 benefit allowance but only purchases $280 in insurance.The remaining $20 given to the client as an excess benefit allowance is counted as income; or

(3) has an option of purchasing insurance and would receive a $300 benefit allowance if insurance was purchased, but the person elects not to purchase the insurance.In this situation, the employer makes $150 of the $300 benefit allowance available as cash.The $150 is an excess benefit allowance and is counted as income.

5.(a) Capital gains income is excluded as income for subsidized child care benefits.Refer to OAC 340:50‑7‑30(1) for food benefits.

(b) Persons who own an interest in a corporation do not qualify for the business expense deduction as they do not have individual business expenses.

(c) Self-employment income tax return forms include, but are not limited to:

(1) Form 1040 with Schedule C for sole proprietors and some limited liability companies;

(2) Form 1065 with Schedule 8865 K-1 for partnerships;

(3) Form 1120-S with Schedule K-1 for S corporation; or

(4) Form 1040 with Schedule F for farmers.

(d) The worker documents in FACS Case Notes how the countable income was calculated.

6.(a) If the client states that his or her income has increased or decreased, the worker uses whatever income is representative of future earnings to determine the family share co-payment.The worker documents in FACS Case Notes how income was calculated and why the full 12-month average was not used.

(b) If the person's self‑employment enterprise has been in existence for less than one year, the worker divides the total income by the number of months the person has been in business.

(c)(b) If When the client has not yet received income from the enterprise self-employment income source, no income is considered per OAC 340:40-7-10 until the client receives some income.

(c) To average the income and expenses for self-employment income receivedfor less than a full year, the worker divides the total income by the number of months received.For example, a self-employment income was received from February 18 to the application month of November.The income is averaged for nine months, February through October.It is correct to count the first month income was received through the last complete month when computing an annualized figure for a new self-employment income.

(d) The worker documents in FACS Case Notes how income was calculated and why the full 12-month average was not used.

7.(a) For example, if This may occur when a person is self-employed only during the summer months and works as an employee for someone else during the rest of the year, the worker averages the self-employment income only for the summer months.

(b) If When this income is from a new source and no income has been received, income is not counted from this source until income is received.If When the client had this same seasonal business the prior year, the worker anticipates income for the first month based on the prior year's income records unless it is not representative.The worker records documentation about how income is calculated in FACS Case Notes.

8.Income from rental property is considered as self-employment whether the client or an outside source manages the property.There is no minimum number of hours the client must manage the property for the income to be considered self-employment.

9.For a client to declare someone is paying room and board rather than being a roommate, the client must own or be buying the home separately from the tenant.Determining who must be considered part of a household is different for food benefit purposes, Food benefit rules differ per OAC 340:50-5-1 and 340:50‑7‑30(9).

10.This provision does not apply to household members 18 years of age and younger who are under the parental control of another adult household member, regardless of school attendance.For the purpose of this provision, earnings include monies paid under the Workforce Investment Act and monies paid by the employer.

1011.A child turning 18 years of age is considered an adult for child care purposes.If When the child is a sibling to the child needing subsidized child care benefits, the 18 year old sibling's income is not counted.Refer to OAC 340:40-7-6 regarding household composition and income consideration, and 340:50-5-1 regarding who must be included in a household for food benefits.

1112.Refer to OAC 340:65-3-4 regarding ways to verify and document unearned income.

1213.Recipients of these assistance programs are predetermined income eligible with a zero family share co-payment for the subsidized child care benefits per OAC 340:40-7-1.

1314.(a) A recipient of Supplemental Security Income (SSI) is predetermined income eligible with a zero family share co-payment for subsidized child care benefits per OAC 340:40-7-1.

(b) The worker considers the SSI income in determining the family share co-payment for other household members.The child receiving SSI is not counted as a child in OKDHS subsidized care on OKDHS Appendix C-4 when determining the family share co-payment for the other children.The only exception is if when it makes a difference in whether the other children are income eligible for child care per OAC 340:40-7-1(1)(B).For example, household income may be $2,425 if when the client is approved for two children in care.Household income for one child in care is $1,950.If When the client has one child receiving SSI and one child who is not and the client's household income is $2,400, it is better for the client to be approved for both children in the same case with a family share co-payment than to receive a zero co-payment for the child receiving SSI and not be eligible for the other child.If When this situation occurs and the family has more than one child receiving SSI, all children must be included on the same case.The family cannot may not choose to put one of the children on the case with the co-payment and the others on their own cases with zero co-payments.

(c) The child is counted as a family member in determining household size.

1415.(a) The worker obtains copies of any established court orders.If When the client states he or she receives any of these types of income, the worker obtains current statements or interviews the person providing this assistance as to dates and amounts of all payments made within the last 60 calendar days.If When support is received sporadically or in varying amounts, the worker may choose to average income over a longer period of time and document his or her reasoning in FACS Case Notes.

(b) To determine if these payments are paid through the Oklahoma Child Support Services (OCSS), the worker uses the Information Management System (IMS) and enters SSN space and the client's Social Security number to find the family group number (FGN).The worker enters KI1 space FGN to display a list of payments received.For an explanation of the FGN enter M space CSMLDATA; and for information on using transaction KI1, enter M space KI1.

(c) The worker codes child support income on the child for whom it is being received if when that child is considered a household member.If When the client is receiving child support for a child not included in the household, it is coded as a contribution to the client.Refer to OAC 340:40-7-12(10) if when child support income is being received for the care and maintenance of a third party.

(d) If When the absent parent is paying a portion of the client's family share co‑payment and the client is also receiving food benefits, the portion that the absent parent is paying is not considered a dependent care deduction for the Supplemental Nutrition Assistance Program (SNAP), per OAC 340:50‑7‑31(b)(4).

(e) Exclude money paid directly to household expenses that are not court‑ordered.Refer to OAC 340:50-7-29(b)(3) for information on how this income is considered for SNAP.

1516.(a) When someone outside of the client's home is paying a portion of the cost of child care directly to the child care provider and states this money is in addition to the client's family share co-payment, the worker enters this additional co-payment in the FACS Eligibility Notebook under the Child Care tab, "Court-ordered" field E55.When a dollar amount is entered in field E55, OKDHS does not make a payment to the child care provider until both the family share co-payment and the additional co-payment is applied to the cost of care first.

(b) The worker sends Form 08MP037E, Notice Regarding Social Services, to both the client and the provider advising them that an additional co-payment is being paid by someone other than the client in addition to the family share co-payment owed by the client.

(c) If When this additional co-payment stops being paid, the worker removes the additional co-payment from the "Court-ordered" field E55 and e-mails emails Form 10EB004E, Report of EBT Child Care Payment Adjustments, to the e-mail email address on the form to request an adjustment be made to the provider's pay.

1617.Military benefits contingent upon the person regularly attending school are excluded.

1718.(a) Non-recurring lump sum payments are excluded as income per OAC 340:40-7-12.

(b) Examples of recurring countable lump sum payments include gambling winnings received on a consistent basis where the client has an established gambling pattern, earnings received less often than monthly, sporadic payments of child support, or dividend payments.

1819.An example of irregular income is gambling winnings that are received on a consistent basis where the client has an established gambling pattern.

340:40-7-13. Computation of income

Revised 6-1-10 [INSTRUCTIONS TO STAFF ONLY REVISED]

(a) Any income from an ongoing source that is received regularly but in amounts that vary, or income received irregularly, is averaged over a minimum of 30 days unless the client has received fewer than 30 days of representative income.¢ 1This includes overtime pay, irregular child support, and other occasional increases or decreases in the monthly gross income.When income is received more often than once per month, the income is converted to a monthly amount.¢ 2

(b) Income of the applicant or recipient is verified by the best available information.¢ 3

(1) When the applicant has received at least 30 days of income, the best available information is whatever records are available that best establish the amount of income already received and expected for future months.¢ 4When the last 30 days of income is not available, actual income must be verified and recomputed within 90 calendar days.

(2) When the client's ongoing income has changed and the last 30 days of income are not indicative of future earnings, best available information may be an employer statement rather than pay stubs.When work hours remain the same but the client received a pay raise, best available information may be to average the work hours over the last 30 days and multiply the figure by the new pay rate.¢ 5

(3) For earned income, pay stubs are used for verification only if the client's name or Social Security number, date(s) of the pay period, and amount of income before deductions are shown on the pay stub.When this information is not shown on the pay stub, or pay stubs are not available, employer verification is required.¢ 6

(c) With new employment, the worker verifies the beginning date, date the first full paycheck is expected to be received, hourly rate, and anticipated number of hours per week.¢ 7Income from a new source is never used in calculating the family share co‑payment until after income is received.See OAC 340:40-7-10 for general provisions regarding income.

(d) To calculate income for an initial certification, the worker:

(1) uses actual income received for the month of application and current month, if known, except when:

(A) all income for the month has not been received and verified.Instead the worker uses any full representative paychecks to anticipate income for the certification month and future months;

(B) the person is paid every two weeks and received three checks in the month of certification from ongoing employment; or

(C) the person is paid weekly and received five checks in the month of certification from ongoing employment; or

(2) anticipates income for the month of application and current month when the household receives an extra check in the initial month due to a third or fifth week and the income is ongoing.In the month of application, the anticipated income may be less than a full month's wages.

(e) To calculate income at review, the worker determines eligibility based on circumstances anticipated for future months using the best information available.

(f) All earned and unearned income is added together to arrive at the gross income for the household.

(g) Once gross income is computed, the only allowable deduction from gross income is for the amount of any verified legally-binding child support payments paid by a household member to or for a non-household member, including child support and child care support payments made to a third party on behalf of the non-household member.¢ 8

(h) The worker uses Oklahoma Department of Human Services (OKDHS) Appendix C‑4, Child Care Eligibility/Co-payment Chart to determine whether the household meets income guidelines.See OAC 340:40‑5‑1(8).

INSTRUCTIONS TO STAFF 340:40-7-13

Revised 6-1-10 6-1-12

1.(a) If When ongoing income fluctuates to the extent that a 30 day period alone cannot provide an accurate indication of anticipated income, a longer period of past income may be requested and used to determine representative income.

(b) When the worker is computing income in the same case for multiple programs and the programs compute income differently, it is sometimes necessary to use the "total diverted" field E47 in the Family Assistance/Client Services (FACS) Eligibility Notebook Child Care tab (Section E) to ensure income is correctly computed for child care.This field is most often used for the initial month of certification when other programs count anticipated income before the applicant receives a full paycheck.The worker, takes care in this instance, to remove removes income from the divert field effective the month the income is countable per child care policy.

2.(a) Food Stamp Penalty Income is not considered for child care computation.

(b) In instances where the amounts to be converted differ, such as fluctuating daily, weekly, or biweekly amounts, the worker obtains an average and the average is multiplied by 4.3, 2, or 2.15, whichever is applicable.The method used to convert income to a monthly amount is income received:

(1) on a daily basis when:

(A) when there is a consistency in days worked each week and there is a regularity of pay dates, is converted to a weekly amount then multiplied by 4.3; or

(B) when income is received at irregular intervals and there is no consistency in the work offered or when pay is received, it is appropriate to average all income received in a calendar month rather than converting to a weekly amount;

(2) weekly is multiplied by 4.3;

(3) twice a month is multiplied by 2; or

(4) every two weeks is multiplied by 2.15.

(c) The worker carries cents through all steps and then rounds to the nearest dollar when arriving at the monthly amount.The worker rounds one cent through 49 cents down and 50 cents through 99 cents up.The worker records income in the FACS Interview Notebook under the Income tab.

3.(a) Terminated income is counted only in the month received.

(b) See Refer to OAC 340:40-7-10(c) for information regarding when to start counting income from a new source.

4.The worker documents in FACS Case Notes how income was calculated and why the records were not available.

5.The worker uses the best available information and documents his or her reasoning in FACS Case Notes.Actual income, with the exception of self-employment income, must be verified and recomputed within 90 calendar days.Refer to OAC 340:40-7-11(b)(2) for information regarding calculation of self-employment income.

6.When computing on-going income using paycheck stubs, the steps in (1) through (5) of this Instruction help ensure more accurate earned income calculation.

(1) The client must provide the most recent 30 calendar days of paycheck stubs from the date of the face-to-face interview including any pay stub received on the date of the interview.

(2) Paycheck stubs provided must be consecutive.Using a calendar to identify the pay dates, ensures there are no missing pay stubs.

(3) Gross amounts of income must be used in the calculation process.

(4) If When hours worked fluctuate from each pay period, the worker discusses with the client the reason for varying hours, such as the employee missed work due to illness or hours fluctuate due to the amount of work performed.The worker documents this discussion in FACS Case Notes.

(5) The worker only uses those paycheck stubs that the worker determines are representative of future earnings for future months.If When the worker excludes any paycheck stubs, he or she documents in the case record or in FACS Case Notes the reason they were excluded.

7.When the client has not received a full paycheck from new employment, it is appropriate to use an employer's statement or Form 08AD094E, Employment Verification, that the employer has completed.When the worker is projecting income using only an employer's statement, the income is converted using either 2.15, 2, or 4.3 calculation method.For new self-employment, refer to OAC 340:40-7-11(b)(2).

8.Child support is defined as any money court-ordered and designated to be paid for the support of a child.This may include, but is not limited to, child support, child support arrearages, medical insurance or other health care premiums, child care obligations, or other obligations specified in individual court or administrative orders.Money owed to a state for benefits provided for a child including, but not limited to, Temporary Assistance for Needy Families (TANF), SoonerCare (Medicaid), and foster care is also considered as child support.Before allowing a child support deduction, the worker obtains proof of the amount ordered and the actual support payments being made each month.The worker enters the amount of child support paid to or for a non-household member in the Child Care tab of the FACS Eligibility Notebook in the "child support deduction" field (E46).

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