When a worker starts up a business, the first months of operation are used as an initial reference period for establishing a monthly net income for all of the first fiscal period. This period will be at least 3 months and no more than 6 months.
If the interruption of activities represents a NORMAL PAUSE in the TYPE OF OCCUPATION in question, the self-employment basis of calculation still applies. The interruption may also have its origin in the seasonal nature of a type of work that begins and ends at fairly specific times of the year. In this case, income is calculated.
Self-employment activities are considered to have PERMANENTLY CEASED when the recipient states that he or she no longer intends to pursue them, is no longer working as a self-employed worker and is no longer organizing his or her affairs to obtain contracts, make sales or operate a business.
Self-employed workers who stop carrying out their activities are required to seek employment and to follow any instructions they may receive in this respect. In addition, such recipients no longer benefit from the exclusion of the assets they needed to perform their self-employment work.
During the start-up period, net income is evaluated for each month. Eligibility for assistance is established on the basis of the net income calculated from month to month. The assistance provided during that start-up phase is unconditional.
A period of 6 months may be appropriate if all the following conditions exist:
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the net income established from month to month is equal to or less than the work income excluded according to the category of program;
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the operating expenses are low and are easily established;
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the net value of assets is minimal and there is no inventory;
- an increase in net income is highly unlikely within the first 6 months of operation.
The net income for each month is used to calculate the benefit for the following month. The accrual accounting method is used to evaluate the net income for each month. One calendar month constitutes a complete fiscal period during that reference period.