Self-Employment Verification

The client must cooperate in providing adequate documentation and verification to support their statements.

If the client chooses the 40% deduction, only the income has to be verified with the “Semi-Annually Eligibility/Status Report” (SAR 7), not the expenses. The “Income/Profit and Loss Statement” (SC 380) is not needed.
If the client chooses to declare actual expenses they must provide a SAR 7 and a statement of income and expenses (SC 380), as well as verification of these expenses.

Deprivation

If the principal earner is self-employed and works less than 100 hours monthly, “U” parent deprivation may be available based on the number of hours worked. For example, they may meet a deprivation basis of unemployed if they work less than 100 hours a month. Once U-Parent deprivation is determined, deprivation is not affected if the recipient increases their hours of self-employment.

The EW must explore the client's ability to work more hours and the need for the type of work that the client performs.

This may often be based upon:

An examination of the client's past business records.
The expectation of future business.
The client's sworn statement, using the “Sworn Statement” (GEN 853).

Work Registration

In determining the work registration requirement for a self-employed person, the EW must use the same criteria for any other employed person.

Self-Employment Verification

Deprivation

Work Registration

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