The Child Care Subsidy program requires caretakers who are self-employed to earn federal minimum wage if they are legally and financially responsible for the child. The amount used to determine whether an individual is meeting this requirement is the countable income after the 50% business expense has been deducted
All parents and legally and financially responsible caretakers are now required to meet the minimum wage rule regardless of how long the self-employment has been going on. Clients are no longer given a 12-month grace period to meet the minimum wage rule.
When a client applies who has ongoing self-employment, they must provide required income verification. If the NET income does not meet the minimum wage rule, care is denied.
If a client applies and states they are getting ready to begin self-employment, the worker may approve 30 days of child care using Presumptive Eligibility. The worker issues an ADM-92 requesting verification of self-employment earnings in the initial 30 days. Once returned, that income must meet the minimum wage rule in order to continue child care.
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