California Department of Social Services - State Hearings
Division
Notes from the Training Bureau - February 8, 2000
Item 00-02-01H
CDSS ACWDL 00-02 -- January 12, 2000 (Synopsis): Self-Employment Guidelines for the 1931(b) and Medically Needy Programs |
Self-Employment Guidelines for the 1931(b) and Medically Needy Programs
This ACWDL states several indicators the county should consider if it is not clear if a
1931(b) or MN applicant or recipient is self-employed and thus subject to self-employment
deductions. The indicators of self-employment include the following:
- The individual defines for himself/herself the nature and scope of daily work which are
not determined or supervised by another person.
- There is a contractual relationship between the seller and buyer of services. Changes in
the definition or extent of the services require changes in the contractual agreement. The
contractor has a pattern of entering into contracts with multiple contractees
simultaneously, or in succession and providing services pursuant to an explicit oral or
written agreement.
- Others assume little or no liability for the individual's work.
- The individual does not work at another's facility nor make substantial use of another's
capital.
- The individual's work requires he/she own substantial equipment, which is subject to
depreciation, and the individual bargains for and receives compensation to reflect the
cost of depreciation.
- The person or entity who pays the individual does not deduct Social Security taxes or
federal taxes.
- Provision of goods or services are contractual if provided pursuant to a bargained for
agreement in which the individual does specific work or produce a specific product for an
agreed price within a specific and limited time period.