(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 are
removed.
(B)What is considered gross earned income?
"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 following:
(a)Wages, salary, back pay, bonuses and awards
paid by an employer.
(b)Commissions.
(c)Severance pay.
(d)Payments from job corps.
(e)Earnings from work training programs and/or
on-the-job training programs.
(f)Sick leave paid as wages.
(g)Annual leave.
(h)Holiday and vacation pay.
(2)State temporary disability insurance and
temporary worker's compensation payments are 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?
(1)"Gross 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)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.
(f)Depreciation.
(3)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 care benefits.
(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 activity.
(F)What income is not counted as gross earned
income?
(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 Code.
(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 Code.
(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 care benefits.
(H)What income is considered gross unearned
income?
(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 cash contributions
received by the family from absent caretakers, persons, organizations or assistance
agencies; social security administration disability, death or retirement benefits;
and child support payments.
(I)What income is not counted as gross unearned
income?
(1)SSI payments.
(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.
(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 arrangement.
(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 administration.
(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 1937.
(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, 1983).
(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, 2016).
(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 Code.
(21) Prevention, retention and contingency (PRC)
payments.
(22) The value of SNAP allotments.
(23) Money received in the form of a nonrecurring
lump sum payment, including, but not limited to:
(a)Retroactive lump sum social security, SSI,
or pension benefits.
(b)Retroactive lump sum insurance settlements.
(c)Retroactive lump sum payment of child support
arrearage.
(d)Refunds of security deposits on rental properties
or utilities.
(e)Publicly funded child care overpayment reimbursements.
(f)PRC payments not defined as cash assistance.
(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 rule.
(25) Any other income amounts that federal statutes
or regulations require be excluded.
(J)How is the family's gross monthly income
calculated?
(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 all cents.
(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 4.3.
(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 exact amounts.
(K)What if an individual has fluctuating income?
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 income.
(a)The gross monthly income shall be computed
by one of the following:
(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 averaged.
(a)Cents shall be dropped prior to calculating
the average income amount.
(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 determination:
(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 period.
(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 new.
(L)What if an individual's income is sporadic?
(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 commission-based income.
(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 earnings.
(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 income.
(a)The income shown on the previous year's
tax return shall be used to estimate earnings for the current and future months.
(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 individual's
circumstance.
(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 allocated monthly.
(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 verification?
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 W-38 self-employment income
verification.
(f)Data from providers of pension benefits.
(g)Business records.
(h)Correspondence or data from the social security
administration.
(i)Data from the Ohio bureau of worker's
compensation.
(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 phone.
(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 county.
(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 case record.
(O)Who is responsible for providing verifications
of income?
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 verification.
(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 eligibility.
(3)If failure to cooperate continues beyond
thirty days from the date of application, the application shall be denied.
(4)Denial of an application does not prohibit
the caretaker parent from reapplying for child care benefits.
Replaces: 5101:2-16-34
Effective: 10/20/2019
Five Year Review (FYR) Dates: 10/20/2024
Certification: CERTIFIED ELECTRONICALLY
Date: 10/10/2019
Promulgated Under: 119.03
Statutory Authority: 5104.38
Rule Amplifies: 5104.38
Prior Effective Dates: 04/01/1990 (Emer.), 06/22/1990, 05/01/1991
(Emer.), 07/01/1991, 11/01/1991 (Emer.), 01/20/1992, 06/17/1994 (Emer.), 09/16/1994,
12/26/1995, 10/01/1997 (Emer.), 12/30/1997, 01/01/1999, 02/22/2002, 02/01/2007,
02/01/2008, 07/01/2009, 08/28/2011, 05/04/2014, 02/22/2015, 09/28/2015, 06/26/2016,
10/01/2017