Current through Register Vol. 24-18, September 15, 2024
Eligible self-employed WCCC consumers may be eligible,
pursuant to WAC
110-15-0190, for up to 16 hours
per day of child care for approved self-employment, education, training, and
travel hours.
(1) To be considered
self-employed, WCCC consumers must:
(a) Earn
income directly from the consumers' own trades or businesses, and not from
wages paid by employers;
(b) Be
responsible to pay the consumers' own self-employment Social Security,
applicable state business and occupation taxes, and federal withholding taxes;
and
(c) Participate directly in the
production of goods or delivery of services that generate the consumers'
incomes.
(2) Income
received from corporations:
(a) Consumers who
only receive income from their ownership or part ownership in a corporation are
not considered self-employed. DCYF counts income or payment received from their
corporation as unearned income.
(b)
DCYF authorizes child care hours based on wages or self-employment income
reported on tax documents.
(3) Authorized child care for children of
consumers operating home-based businesses must not occur in the consumers'
homes.
(4) Consumers receiving TANF
who are also self-employed may be eligible for WCCC benefits if:
(a) They have approved self-employment plans
in the consumers' individual responsibility plans as outlined in chapter
388-310 WAC;
(b) The number of
activity hours of child care benefits consumers receive for self-employment is
equal to the number of hours in the consumers' approved plans; and
(c) Income from self-employment while the
consumers are receiving TANF is determined by WAC
388-450-0085.
(5) Self-employed consumers not
receiving TANF.
(a) Consumers who do not
receive TANF cash assistance and request WCCC benefits for self-employment must
provide DCYF with:
(i) Statements of the days,
hours, and locations of the consumers' work activity;
(ii) For new businesses that are not required
to report taxable income, the projected profit and loss statements or
statements of anticipated income after expenses;
(iii) For established businesses, state or
federal self-employment tax returns or state tax transcripts and forms,
including all schedules, for the most current reporting year; and
(iv) Projected profit and loss statements
with supporting verifications if self-employment income is expected to be lower
than recorded on provided federal or state tax documents.
(b) Consumers with new businesses that do not
have federal or state tax documents may be required to provide verification of
Washington state tribal, county, or city business or occupation
licenses.
(6) Determining
approved activity hours for new businesses.
(a) DCYF considers "new businesses" to be
businesses that have not had a required federal tax filing.
(b) At application and reapplication, DCYF
determines the number of activity hours consumers are eligible to receive based
on schedules the consumers provide.
(c) Consumers may be eligible to receive
these new-business WCCC benefits only once during consumers'
lifetimes.
(7)
Determining approved activity hours for existing businesses.
(a) DCYF considers "existing businesses" to
be businesses that have been established long enough to file a quarterly state
tax return or annual federal tax return, whichever occurs first.
(b) At application and reapplication, DCYF
determines the number of activity hours consumers are eligible to receive by:
(i) Dividing consumers' net monthly
self-employment incomes by the federal or state minimum wage, whichever is
lower, to determine the average monthly hours approved for self-employment
activity; and
(ii) Adding any
additional approved employment, education, training, or travel hours to the
total approved self-employment activity hours.
(8) Self-employment income calculation:
(a) For existing businesses, DCYF:
(i) Counts the net income reported on the
federal tax return; or
(ii) Uses
the state tax return and may:
(A) Subtract the
documented business expenses from the reported gross income; or
(B) Subtracts a $100 deduction per month from
consumers' gross monthly self-employment income.
(b) For existing businesses that have income
reductions not reflected on their provided federal or state tax filings, DCYF
subtracts the documented business expenses from the reported gross income on
the projected profit and loss statements to estimate the monthly income after
expenses.
(c) For new businesses,
DCYF uses the consumers' projected hours dedicated to their self-employment
activity multiplied by federal minimum wage or projected profit and loss
statements to estimate their monthly incomes.
(d) DCYF may ask for additional information
to verify income or expenses.
(9) Both parents or guardians in two-parent
or guardian families must separately meet the eligibility requirements for
child care.
Statutory Authority:
RCW
43.215.060 and
43.215.070. WSR 17-23-017, §
170-290-0050, filed 11/3/17,
effective 12/4/17. Statutory Authority:
RCW
43.215.070, chapter 43.215 RCW. WSR
16-19-107, §
170-290-0050, filed 9/21/16,
effective 10/22/16. Statutory Authority:
RCW
43.215.060,
43.215.070, and chapter 43.215
RCW. WSR 16-09-059, §
170-290-0050, filed 4/15/16,
effective 5/16/16. Statutory Authority: Chapter 43.215 RCW,
RCW
43.215.060,
43.215.070, 2011 1st sp.s. c 42,
2011 1st sp.s. c 50, and 2006 c 265 § 501. WSR 11-18-001, §
170-290-0050, filed 8/24/11,
effective 9/24/11. Statutory Authority:
RCW
43.215.060,
43.215.070, 2006 c 265, and
chapter 43.215 RCW. WSR 09-22-043, §
170-290-0050, filed 10/28/09,
effective 12/1/09. WSR 08-08-047, recodified as §
170-290-0050, filed 3/27/08,
effective 3/27/08. Statutory Authority:
RCW
74.04.050,
74.12.340,
74.13.085, and 2003 1st sp.s. c
25. WSR 04-08-021 and 04-08-134, § 388-290-0050, filed 3/29/04 and 4/7/04,
effective 5/28/04. Statutory Authority:
RCW
74.04.050,
74.13.085. WSR 02-12-069, §
388-290-0050, filed 5/31/02, effective 7/1/02. Statutory Authority:
RCW
74.04.050 and C.F.R. Parts 98 and 99 (Child
Care Development Fund Rules). WSR 02-01-135, § 388-290-0050, filed
12/19/01, effective 1/19/02.
