Hawaii Administrative Rules
Title 17 - DEPARTMENT OF HUMAN SERVICES
Department of Human Services
Chapter 798.2 - CHILD CARE SERVICES
Subchapter 1 - GENERAL PROVISIONS
Section 17-798.2-10 - Income considered in eligibility determination
Universal Citation: HI Admin Rules 17-798.2-10
Current through November, 2024
(a) Monthly gross income shall be used to determine income eligibility of the family unit, except for individuals identified in subparagraphs 17-798.2-9(b)(1)(A) and (B), by using one of the following:
(1) The average of the prior two months gross
income for existing employment;
(2)
The monthly gross income received in the prior month for existing employment;
or
(3) The monthly gross income
that is anticipated to be received from prospective employment.
(A) Weekly gross income anticipated to be
received shall be converted to a monthly gross income by multiplying the weekly
income by 4.3333.
(B) Bi-weekly
gross income anticipated to be received shall be converted to monthly income by
multiplying the bi-weekly income by 2.1667.
(b) Monthly gross income means monthly sums of income received from sources such as but not limited to:
(1) Gross income (before deductions are made
for items such as, but not limited to, taxes, union dues, bonds, and pensions)
from:
(A) Wages;
(B) Salary;
(C) Armed forces pay, excluding basic housing
allowance;
(D)
Commissions;
(E) Tips;
(F) Piece-rate payments; or
(G) Cash bonuses earned;
(2) Social security pensions and survivors"
benefits (prior to deductions for medical insurance) including:
(A) Railroad retirement insurance checks from
the U.S. government; and
(B)
Permanent disability insurance payments made by the Social Security
Administration;
(3)
Unemployment insurance benefits such as:
(A)
Compensation received from government unemployment insurance agencies or
private insurance companies during periods of unemployment; and
(B) Any strike benefits received from union
funds;
(4) Worker's
compensation benefits and temporary disability insurance benefits:
(A) Worker's compensation benefits include
compensation received from private or public insurance companies for injuries
incurred at work;
(B) Temporary
disability insurance benefits include compensation received from private or
public insurance companies for short-term disabilities resulting from
off-the-job sickness or injury; and
(C) The cost of the insurance shall have been
paid by the employer and not by the employee, and the benefits are made to
individuals who continue to be considered employees of the company;
(5) Pensions and annuities,
including pensions or retirement benefits paid to a retired person or the
person's survivors by a former employer or by a union, either directly or by an
insurance company;
(6) Veteran's
pensions and other benefits, which include:
(A) Money paid periodically by the Veteran's
Administration to:
(i) Survivors of deceased
veterans; or
(ii) Disabled members
of the armed forces;
(B)
Subsistence allowances paid to veterans for:
(i) Education; or
(ii) On-the-job training; and
(C) Refunds paid to former members
of the armed forces as GI insurance premiums;
(7) An allotment of a member of the armed
forces;
(8) Alimony;
(9) Child support;
(10) Public assistance payments from another
state;
(11) Hawaii public
assistance payments;
(12) Adoption
assistance payments;
(13) Dividends
from stockholdings or memberships in associations;
(14) Periodic interest on savings or
bonds;
(15) Income from estates or
trust funds;
(16) Income from
rental of property after business expenses;
(17) Royalties;
(18) Income received from self-employment:
(A) To be considered self-employed, the
individual shall:
(i) Generate income
equivalent to eighteen hours per week multiplied by 4.3333 weeks multiplied by
State minimum wage at the time of eligibility and in each subsequent month. The
department shall determine the number of hours a week the family spends in
self-employment activities. When the family is working at least eighteen hours
per week and receives income from the sale of goods and services, the
department calculates qualifying earned income from self-employment by
multiplying the hourly State minimum wage and the number of hours spent monthly
in self-employment activities. The product of this computation must be equal to
or greater than State minimum wage multiplied by eighteen hours per week
multiplied by 4.3333 weeks to qualify the applicant. This must be considered
first as monthly earned income when determining eligibility for child care
payments as a self-employed individual;
(ii) Not be subject to discharge from the job
by another person;
(iii) Report
income to the Internal Revenue Service and the State as a self-employed
person;
(iv) Meet social security
requirements as a self-employed person and pay employer's and employee's share
of social security taxes; and
(v)
Not be considered an employee of an agency or organization.
(B) Income received from non-farm
self-employment means the gross receipts minus expenses for an individual's own
business, professional enterprise, or partnerships.
(i) Gross receipts shall include the value of
all goods sold and services rendered.
(ii) Expenses shall include the costs of
goods purchased, rent, heat, light, power, depreciation charges, wages and
salaries paid, business taxes, and other similar costs.
(iii) The value of salable merchandise
consumed by the proprietors of retail stores shall not be included as part of
net income.
(iv) Items such as
depreciation, personal, business and entertainment expenses, transportation,
purchase of capital equipment, and payments on the principal of loans for
capital assets or durable goods shall not be deducted as business expenses.
Personal expenses such as lunches and transportation to and from work shall not
be deducted as business expenses.
(C) Income received from farm self-employment
means the gross receipts minus operating expenses from the operation of a farm
by a person on the person's own account, as an owner, renter, or sharecropper.
(i) Gross receipts shall include the value of
all products sold, government crop loans, money received from the rental of
farm equipment to others, and incidental receipts from the sale of wood, sand,
gravel, and similar items.
(ii)
Operating expenses shall include the cost of feed, fertilizer, seed, and other
farming supplies, cash wages paid to farmhands, depreciation charges, cash
rent, interest on farm mortgages, farm building repairs, farm taxes (not state
and federal income taxes), and other similar expenses.
(iii) The value of fuel, foods, or other farm
products used for family living shall not be included as part of net income;
and
(19) Free
rent converted to a cost compensation when it is exchanged for an activity
instead of wages or salary. The department shall determine this by multiplying
the State minimum wage multiplied by forty hours a week multiplied by 4.3333
weeks. When work is less than forty hours a week, use the actual number of
hours worked in the month multiplied by State minimum wage; and
(c) Gross income from the caretakers" approved activities such as selling real estate, or engaging in fishing and farming, which provide irregular income over a period of six months, may be allowed to be averaged over the simplified report period to determine the budget month amount.
Disclaimer: These regulations may not be the most recent version. Hawaii may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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