461-145-0910    Effective 01/01/21
Self-Employment; General; Not OSIP, OSIPM, or QMB

 

1. Self-employment income is income resulting from an individual's business, trade, or profession, rather than from a salary or wage paid by an employer. An individual is considered self-employed if the individual meets the criteria in sections (2) or (3) of this rule. Except as noted in section (3) of this rule when an individual has established a corporation, determine if the individual is self-employed according to section (2) of this rule. If the individual has more than one self-employment business, trade, or profession, the income from each is determined separately.

2. Except as provided in OAR 461-145-0250(1), an individual is self-employed for the purposes of this division of rules if the individual meets the requirements of one or more of (a), (b), or (c):
   1. Files taxes as self-employed for their business on their personal taxes.

   2. Is considered an independent contractor by the business.
   3. Meets all the following criteria:
      1. Is not required by the business to complete an IRS W-4 form;

      2. Is not required to pay federal income tax or FICA payments from their paycheck(s);

      3. Liability or worker’s compensation insurance for the individual is not paid by the business;

      4. Meets at least one of the following:
         1. Creates or provides the products or services they sell, or
         2. Sets the price for the products or services they sell;
      5. Is responsible for the business expense and losses; and
      6. Receives profits from the business.

3. Notwithstanding section (2) of this rule:
   1. Homecare Workers (see OAR 411-031-0020) paid by the Department are not self-employed.

   2. Child care providers (see OAR 461-165-0180) paid by the Department, adult foster home providers (see OAR 411-050-0602) paid by the Department, realty agents, and individuals who sell plasma, redeem beverage containers, pick mushrooms for sale, or engage in similar enterprises are considered to be self-employed.

4. In the ERDC, REF, SNAP, and TANF programs, self-employment income is counted prospectively to determine eligibility (see OAR 461-001-0000) as follows:
   1. Self-employment income is annualized when it is:
      1. Received during less than a 12-month period but is intended as a full year's income.

      2. From a business that has operated for a full year and the previous year is representative of what the income and costs will be during the budget month.

   2. Except in the ERDC program, self-employment income is treated as anticipated income when a financial group (see OAR 461-110-0530) begins self-employment and is unable to determine what the income and costs will be during the budget month.

5. In the REFM program:

   1. Self-employment income is counted only if received in the month of application.

   2. If self-employment income counted in the month of application puts the applicant over the income limits for REFM, the income is calculated according to section (4) of this rule.

6. When determining the amount of countable (see OAR 461-001-0000) self-employment income, use gross receipts and sales, including mileage reimbursements, before costs.

Statutory/Other Authority: ORS 409.050, 411.060, 411.070, 411.404, 411.816, 412.006, 412.049, 413.085, 414.685
Statutes/Other Implemented: ORS 409.010, 409.050, 411.060, 411.070, 411.404, 411.816, 412.006, 412.049, 413.085, 414.685

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