Determination of Self-Employment

The following criteria offer guidelines in defining self-employment, but are not all inclusive or inflexible.

The self-employed person:

  • Filed taxes as self-employed the previous year and is in the same type of self-employment at the time of application. (This could include the person that works for his/her own business and the business files as such.)

OR

  • Who did not file as self-employed the previous year because they are newly self-employed or for some other reason did not meet the above criteria, may still be considered self-employed.

OR

  • Commonly offers his/her services or merchandise to ANYONE who may be in the market for them; AND
    • Commonly provides HIS/HER OWN supplies, materials or merchandise; AND
    • Is responsible for expenses normally paid by an employer.

Note: A self-employed person may meet the definition of U parent for CalWORKs application purposes. For example, a self-employed gardener who was only able to find 50 hours a month employment could be classified “unemployed.”

Related Topics

Self-Employment

Verification

Examples of Self-Employment Determinations

Property and Resource Determination

Income Determination

Business Expenses

Nonallowable Business Expenses

Calculating Net Self-Employment Income