WAG 03-06-01-c

Count the hours of work the same way the customer's employer counts them. When a customer first starts a job, confirm the number of hours he or she expects to work at the same time you confirm expected earnings.

When the customer's paystubs show hours, compute a weekly average from the number of hours shown on the paystubs. If hours are not shown on the paystubs, accept the customer's statement of hours worked, as long as reported earnings support it.

 new textTo count hours for activity participation, follow up with a request for verification. See PM 03-13-01-c.

Tell self-employed customers to keep a log of hours worked to support their statement. The log should be submitted with the EZ REDE application. If the customer's earnings do not support his or her claim of hours worked, request additional verification, such as statements from persons for whom the customer has provided services or to whom he or she has sold products.

Use the number of hours reported on the EZ REDE application, unless the customer states he or she expects the number of hours to change. If they expect a change, use the number of hours they expect to work.

When the customer reports a change in his or her hours, update the number of work hours recorded in the system.

Weekly hours are totaled for the types of work with an amount greater than zero earned by the adults in the case. The total hours are used to decide whether or not to count the month.

Calculating Hours for Self-Employment

revised textFederal minimum wage formula:

To determine the number of hours to count for self-employment, divide the amount of income minus self-employment expenses, by the current federal minimum wage. (See WAG 25-06-08)

Child care provider exception to minimum wage formula:  

Count the actual hours worked if the person is a child care provider who is paid at or near to the Department's child care rate. If not paid at or near the Department rate, use the federal minimum wage formula.

So as not to discourage TANF adults from being engaged as a licensed or licensed-exempt child care provider, the federal minimum wage formula is not used to determine the number of hours worked if income and hours reported are consistent with the Department's child care payment rates.

Child care provider wages are based upon the daily and weekly fees charged for each child receiving child care. If the minimum wage formula was used to determine hours of participation, TANF customers by default, would be unable to meet participation based upon hours worked. Therefore, an exception to use of the minimum wage formula is made for self-employed child care providers when income and hours reported are consistent with the Department's payment rates.

Use the Child Care Payment Rates found in WAG 06-16-06  to determine if income and hours are consistent with the program's payment rates.

If income and hours reported are consistent with the program's payment rates, the hours documented on the self-employment record are projected for the next 6 months.

If income and hours reported do not show that the customer is being paid approximately what they would earn through the Department's Child Care program, then the regular self-employment federal minimum wage formula for determining hours worked is used.