WSR 15-09-135
PERMANENT RULES
DEPARTMENT OF
SOCIAL AND HEALTH SERVICES
(Economic Services Administration)
[Filed April 22, 2015, 9:24 a.m., effective August 1, 2015]
Effective Date of Rule: August 1, 2015.
Purpose: This department is amending WAC 388-450-0085 Does the department count all of my self-employment income to determine if I am eligible for benefits?, to allow households with self-employment income and who receive cash and/or food assistance to take the greater of:
A standard fifty percent deduction from the gross self-employment income; or
A deduction consisting of actual verified and allowable cost of producing self-employment income.
This rule replaces the current $100 standard self-employment income deduction for cost of doing business.
Citation of Existing Rules Affected by this Order: Amending WAC 388-450-0085.
Statutory Authority for Adoption: RCW 74.04.050, 74.04.055, 74.04.057, 74.04.510, and 74.08.090.
Other Authority: 7 C.F.R. § 273.11 (b)(3)(iv).
Adopted under notice filed as WSR 15-03-074 on January 16, 2015.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.
Date Adopted: April 16, 2015.
Katherine I. Vasquez
Rules Coordinator
AMENDATORY SECTION (Amending WSR 13-18-007, filed 8/22/13, effective 10/1/13)
WAC 388-450-0085 Does the department count all of my self-employment income to determine if I am eligible for benefits?
This section applies to cash assistance and Basic Food programs.
(1) We decide how much of your self-employment income to count by:
(a) Adding together your gross self-employment income and any profit you make from selling your business property or equipment;
(b) Subtracting your business expenses as described in subsection (2) below; and
(c) Dividing the remaining amount of self-employment income by the number of months over which the income will be averaged.
(2) We subtract ((one hundred dollars)) the greater value of one of the following as a business expense:
(a) Fifty percent of the gross self-employment income total described in subsection (1)(a) in this section even if your costs are less than this; or
(b) The actual verified and allowable costs of producing your self-employment income. If you want us to subtract your actual costs ((of more than one hundred dollars)), you must list and give us proof of your expenses within the time limits under WAC 388-406-0030 for us to count them.
(c) We never allow the following expenses when calculating (2)(b):
(((a))) (i) Federal, state, and local income taxes;
(((b))) (ii) Money set aside for retirement purposes;
(((c))) (iii) Personal work-related expenses (such as travel to and from work);
(((d))) (iv) Net losses from previous periods;
(((e))) (v) Depreciation; or
(((f))) (vi) Any amount that is more than the payment you get from a boarder for lodging and meals.
(3) If you have worked at your business for less than a year, we figure your gross self-employment income by averaging:
(a) The income over the period of time the business has been in operation; and
(b) The monthly amount we estimate you will get for the coming year.
(4) For cash assistance, if your self-employment expenses are more than your self-employment income, we do not use this "loss" to reduce income from other self-employment businesses or other sources of income to your assistance unit.
(5) For Basic Food, we use a "loss" from self-employment farming or fishing income to reduce other sources of income only if you meet the following three conditions:
(a) Someone in your assistance unit is a self-employed farmer or fisher;
(b) Your gross yearly income from farming or fishing is or is expected to be at least one thousand dollars; and
(c) Your allowable costs for farming or fishing are more than your income from farming or fishing.