Business Less Than One Year
(01/01/19 - 12/31/19)
Apply the following steps when a self-employment business has been in operation for less than one year:
Average the total amount of self-employment income received over the number of months the business has been in operation.
Exclude the following months of income from the average when they are partial months:
The initial month of self-employment income
The current month
Discuss with the participant whether the averaged amount reflects the monthly income reasonably certain to be received during the approval period. Complete one of the following based on the discussion:
When the averaged amount accurately reflects the participant's expected income, budget the averaged amount. (See Example SEEI Less Than a Year)
When the averaged amount does not accurately reflect the participant's expected income, see Projecting Self-Employment.
Documentation must support determinations of eligibility and benefit level. Document in enough detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Income Documentation Requirements)
When expenses are incurred, see Allowable Business Expenses.