(A) What income is used to determine
caretaker eligibility for publicly funded child care benefits?
The county agency shall use gross earned income
and gross unearned income to determine child care income eligibility and family
copayment. Gross income is the income amount before taxes and other deductions
(B) What is considered gross earned
"Gross earned income" means the total
amount of gross earnings received in a month by all of the employed individuals
in the family including wages legally obligated to all members of the family
but which are diverted to a third party.
(C) What is counted as gross earned
income for services performed as an employee?
(1) "Gross earnings
for services performed as an employee" means any of the
(a) Wages, salary, back pay, bonuses and awards paid by an
(c) Payments from job corps.
(d) Earnings from work training programs and/or on-the-job
(e) Sick leave paid as wages.
(f) Annual leave.
(g) Holiday and vacation pay.
(2) State temporary
disability insurance is considered gross earnings when such payments meet all
of the following conditions:
(a) The payment is employer-funded.
(b) The payment is made to an individual who remains
employed during recuperation from a temporary illness or injury pending return
to the job.
(c) The payment is specifically characterized under state
law as temporary wage replacement.
(D) What is counted as gross earned
income for individuals who are self-employed?
self-employment earnings" means the total profit from a business
enterprise. The total profit from the self-employment business enterprise is
determined by one of the following:
(a) Adding all gross self-employment income, then deducting
the self-employment expenses from the total gross income, or
(b) Using a standard fifty per cent deduction from the
total gross self-employment income.
(2) Income from a rental
property minus the cost of doing business when an individual is actively
engaged in management of the property for at least an average of twenty hours
(3) Payments from a
roomer or boarder, except a boarder for whom foster care, guardianship, or
kinship support payments are received.
(4) Self-employment expenses are those
expenses directly related to producing the goods and services. The following
expenses are not allowable deductions:
(a) Net losses from a previous period.
(b) Federal, state and local income tax.
(c) Money set aside for retirement.
(d) Work related personal expenses, such as transportation
to and from work.
(e) Entertainment expenses.
(5) Individuals who are self-employed and
have no countable income shall provide written verification documenting how
they are meeting basic living expenses, including, but not limited to, food,
housing, utilities and transportation. This documentation shall be used in
determining authorized hours in paragraph (E) of this rule. Failure to provide
sufficient documentation shall result in the denial or termination of child
(E) How are work hours determined for
individuals who are self-employed?
(1) For approved
self-employment activities, the work hours used to determine the publicly
funded child care category of authorization shall be for no more hours than it
would take an individual to earn the same amount of money working at the
federal minimum wage. This shall be calculated as follows:
(a) Divide the gross self-employment earnings determined in
paragraph (D) of this rule by 4.3 weeks.
(b) Divide the number determined in paragraph (E)(1)(a) of
this rule by the federal hourly minimum wage.
(c) Round the number determined in paragraph (E)(1)(b) of
this rule up to the nearest whole number.
(2) The number determined
in paragraph (E)(1) of this rule is the maximum weekly hours which can be
applied to the child care authorization for the self-employment approved
(F) What income is not counted as gross earned
(1) The gross earnings of
a minor child in the family who is a full-time student as defined by the
school, unless the minor is a parent.
(2) Alimony or child
support payments paid by a family member. The amount paid, up to the amount
ordered, is excluded.
(3) The verified amount
which is being garnished from the income.
(4) Earnings received
under the Domestic Volunteer Service Act of 1973 for participation in the
"Americorp Vista" program.
(5) Federal work study
income as referenced in rule 5101:4-4-13 of the Administrative
(6) All income, including
in kind benefits, excluded under the supplemental nutrition assistance program
(SNAP) regulations, as set forth in rule 5101:4-4-13 of the Administrative
(7) Any other income
amounts that federal statutes or regulations require be excluded.
(8) Any income earned by
a person receiving supplemental security income (SSI).
(G) What about individuals who are unemployed or on unpaid
leave from employment?
(1) Individuals who are
unemployed or on unpaid leave from employment shall provide written
verification documenting how they are meeting basic living expenses including,
but not limited to, food, housing, utilities and transportation.
(2) Failure to provide
sufficient documentation shall result in the denial or termination of child
(H) What income is considered gross unearned
(1) "Gross unearned
income" means the total amount of unearned income that is received in the
month by all members of the family.
(2) Unearned income is
income that is not gross earned income or is not gross earned income from
self-employment, as defined in this rule.
(3) Unearned income
includes but is not limited to the following:
(a) Cash contributions received by the family from absent
caretakers, persons, organizations or assistance agencies.
(b) Social security administration disability, retirement
or survivor's benefits.
(c) Railroad disability, retirement or survivor's
(d) Child support and/or alimony payments made to a family
member by an individual not living with the family.
(e) Temporary worker's compensation
(f) Termination/severance pay received as average pay, and
not as a non-recurring lump sum.
(g) Rental income for properties that are not
(h) Rental income for properties when the individual
manages the properties for less than an average of twenty hours per
(i) Unemployment benefit payments.
(j) Basic assistance payments from Ohio works first
(I) What income is not counted as gross unearned
(2) Federal, state or
local foster care maintenance payments.
(3) Federal, state or
local adoption assistance payments.
(4) Kinship permanency
incentive payments made in accordance with the requirements of rule
5101:2-40-04 of the Administrative Code, and kinship support payments made in
accordance with the requirements of rule 5101:2-42-18.2 of the Administrative
(5) Payments made with
county funds to increase the amount of cash assistance an assistance group
receives in accordance with section 5107.03 of the Revised Code.
(6) Child support
payments paid by a family member for a child outside the family. The amount
paid, up to the amount ordered, is excluded.
(7) Alimony paid pursuant
to a court order.
(8) Contributions for
shared living arrangements.
(a) These include cash payments received by a family from
an individual who is not a family member but who resides in the household and
shares responsibility for the household expenses through an informal
(b) The cash payment given to the family is not available
to the family because the payment represents the non-family member's share
of the household expenses.
(9) Bona fide loans from
any source, including rural housing loans made by the federal housing
(10) Experimental housing
allowance program payments made under annual contributions on contracts entered
into prior to January 1975, under section 23 of the U.S. Housing Act of
(11) HUD community
development block grant funds paid under Title I of the Housing and Community
Development Act of 1974 (Public Law 93-383).
(12) Home energy
assistance support and maintenance paid in cash or in-kind, Public Laws 97-377
(December 21, 1982), 97-424 (January 6, 1983), and 98-21 (April 20,
(13) Income tax refunds
received by any of the family members.
(14) The verified amount
which is being garnished from the income.
(15) Earned income tax
credit payments when received as part of an income tax refund.
(16) The value of surplus
commodities donated by the department of agriculture.
(17) Benefits received
under Title VII, nutrition program for the elderly, Older Americans Act of
1965, Public Law 89-73 as amended through Public Law 114-144 (April 19,
(18) Retroactive payments
made as a result of a state hearing.
(19) Escrow accounts
established or credited as the direct result of the assistance group's
involvement in family self-sufficiency on or after May 15, 1992.
(20) Ohio works first
cash payment for support services, pursuant to section 5107.66 of the Revised
retention and contingency (PRC) payments.
(22) The value of SNAP
(23) Money received in
the form of a nonrecurring lump sum payment, including, but not limited
(a) Retroactive lump sum social security, SSI, or pension
(b) Retroactive lump sum insurance
(c) Retroactive lump sum payment of child support
(d) Refunds of security deposits on rental properties or
(e) Publicly funded child care overpayment
(f) PRC payments not defined as cash
(g) Termination/severance payments.
(24) Income excluded
under the SNAP regulations, as set forth in rule 5101:4-4-13 of the
Administrative Code, unless the income is included under the provisions of this
(25) Any other income
amounts that federal statutes or regulations require be excluded.
(J) How is the family's gross monthly income
(1) When determining
eligibility and copayment for child care benefits, the county agency shall
calculate the family's gross monthly income.
(2) Earned and unearned
income that is received on a monthly basis shall be rounded down by dropping
(3) Earned and unearned
income that is received weekly, bi-weekly or semi-monthly shall have all cents
dropped before and after being converted into a monthly amount. Amounts shall
be converted as follows:
(a) Income received on a weekly basis is multiplied by
(b) Income received biweekly (every two weeks), is
multiplied by 2.15.
(c) Income received semimonthly (twice a month) is
multiplied by two.
(4) Hourly rates which
include cents are not rounded but are converted into monthly figures using the
(K) What if an individual has fluctuating
If an individual has fluctuating income, the
income shall first be averaged to arrive at a figure to be converted into a
monthly amount, according to the following procedures:
(1) If the employed
individual works the same number of hours per pay period, that number of hours
shall be used in computing the individual's gross monthly
(a) The gross monthly income shall be computed by one of
(i) Using the gross
earnings listed on the individual's pay stubs; or
(ii) Multiplying the
number of hours per pay period by the hourly rate of pay.
(b) The figure determined in paragraph (K)(1)(a) of this
rule is used to convert the income into a monthly amount.
(2) If the employed
individual has fluctuating hours of employment, the income shall be
(a) Cents shall be dropped prior to calculating the average
(b) The average income amount is used in converting the
income into a monthly figure.
(c) When possible, the county agency shall average the
income received in the preceding four weeks.
(3) When the income from
the prior four week period is not representative of current or future income,
the county agency shall project income based on a best estimate. The best
estimate shall consider the following variables which may affect the
(a) More than four weeks of pay stubs, if they are
available and the individual states that an average of a longer period of time
is more representative because the income received in the most recent four
weeks was less or greater than the average. The county agency shall use all
available income related information for the immediately preceding three month
(b) The individual's projection of future earnings,
when the individual disagrees with the use of income for the past four weeks
period as representative of future income. The county agency shall determine a
representative figure using all available income related information, including
the individual's projection of future income.
(c) Year-to-date earnings, if listed on an
individual's pay stub. Year-to-date earnings may be used to determine
average income for periods longer than four weeks.
(d) All available income related information, which shall
be used to determine a representative figure when there are fewer than four
weeks of pay stubs available. This includes situations when the employed
individual disagrees with the use of earnings from the past four week period as
indicative of future earnings.
(e) Written documentation from the employer, which shall be
required if there are no pay stubs available because the employment is
(L) What if an individual's income is
(1) If income is
sporadic, the income for a period of one year shall be used to determine an
average adjusted monthly income. An example of sporadic income is
(2) When income is from
work that normally involves seasonal periods of unemployment, the family's
adjusted monthly income shall be determined from the adjusted annual income of
the family divided by twelve months.
(M) How is self-employment income calculated?
For situations in which an individual has
self-employment income, the county agency shall determine the gross earnings
for the month based on an estimate of the individual's gross annual
(1) The self-employed
individual shall provide copies of the tax return from the previous year as
well as current business records in order to project annual gross
(a) The income shown on the previous year's tax return
shall be used to estimate earnings for the current and future
(b) The gross monthly earnings shall be determined by
dividing the previous year's tax return by the number of months the
individual was self-employed the previous year.
(c) Estimation of self-employment income shall be used when
the individual has been self-employed for some time, the gross earnings have
remained fairly constant, and there is no anticipated change in the
(2) If the individual
contests the estimate of income from self-employment based solely on
information on the previous year's tax return, the individual shall
provide a projected estimate of gross earnings for the current taxable year,
based upon current business records.
(a) When the individual cannot estimate gross earnings for
the current taxable year based on current business records, the county agency
shall accept the individual's best estimate.
(b) Using the individual's best estimate of income for
the current taxable year, the county agency shall allocate one-twelfth of the
gross annual income equally into each month of the taxable year.
(3) If the individual
contests the county agency estimate of the income from self-employment based
solely on information on the previous year's tax return but does not
provide a projected estimate of gross earnings for the taxable year based on
current business records, the county agency shall project the earnings based on
the gross earnings listed on the previous year's tax return.
(a) If the individual does not have a tax return from the
previous year, the county agency shall project an estimate of the
individual's annual gross earnings from self-employment based on the
individual's current business records. The county agency shall determine
that one-twelfth of the projected gross earnings from self-employment shall be
(b) In the absence of both previous year's tax return
and current business records, the county agency shall require the individual to
provide a written best estimate of his or her projected annual income and
expenses. The county agency shall then determine that one-twelfth of the
projected annual gross earnings from self-employment shall be distributed into
all months of the taxable year.
(N) What are acceptable forms of income
All income shall be verified by the best
available information from the following list:
(1) Documentary evidence
is written confirmation of the applicant's income. The county agency
should include copies of all documents used for verification in the case file.
If copies of documents cannot be obtained, a description of the documentary
evidence shall be included in the case file. Documentary evidence includes, but
is not limited to, the following:
(a) Pay stubs.
(b) Income tax returns.
(c) The most recent W-2 form.
(d) Self-employment bookkeeping records.
(e) The most recent tax forms for self-employed
(f) Data from providers of pension benefits.
(g) Business records.
(h) Correspondence or data from the social security
(i) Data from the Ohio bureau of worker's
(j) A signed statement from the employer that includes
gross income and/or hourly wage and work hours.
(2) A collateral contact
is an oral confirmation by someone that is not a member of the applicant's
household, including employers, human resources personnel, social service
agencies or migrant service agencies.
(a) A confirmation may be made in person or over the
(b) The collateral contact may be anyone who can provide an
accurate third-party verification. The person who will act as the collateral
contact may be provided by the applicant or selected by the
(c) If income received is cash without a receipt, a contact
with the employer is required.
(d) The county agency is not required to use a collateral
contact provided by the applicant if there is reason to believe the contact
will not be able to provide accurate third-party verification. In these cases,
the county agency may request another collateral contact from the applicant or
may select an alternate contact themselves.
(e) The county agency may contact individuals or agencies
with receipt of a signed application as defined in rule 5101:2-16-02 of the
Administrative Code, or other signed written consent by the caretaker, in order
to obtain all pertinent information regarding family income.
(3) A statement from the
applicant may be acceptable on a case-by-case basis when no other verification
is available. When an applicant statement is used it shall be documented in the
(O) Who is responsible for providing verifications of
The caretaker shall provide verification of the
source and amount of any income received, unless such information is already
available to the county agency.
(1) The county agency
shall assist the caretaker in obtaining verification provided the caretaker has
not refused to cooperate in the development of documentation for any source of
income received. If it would be difficult or impossible for the caretaker to
obtain verification in a timely manner, or if the county agency can obtain the
verification faster, the county agency shall offer assistance in obtaining the
(2) Failure to cooperate in the
development of documentation for any source of income received is acceptable
grounds for a delay in the processing of an application or a determination of
(3) If failure to cooperate continues
beyond thirty days from the date of application, the application shall be
(4) Denial of an application does not
prohibit the caretaker parent from reapplying for child care