05.04.08 – Self-employed workers – Uncertainty of self-employment income

 

In cases in which income is uncertain, a MONTHLY BASIS is used to calculate the deficit and the amount of assistance is adjusted each month according to the net income established from month to month.

 

The criterion of prolonged income instability, that is, the ABSENCE OF INCOME FOR TWO MONTHS OR MORE, qualifies a file for MONTHLY processing.

 

If this criterion is met, the MONTHLY NET INCOME must be calculated using the accrual accounting method.

 

Thus, if a monthly basis of calculation is used, net income for a given month is established as follows:

 

Net income for the month =        gross income (sales) for the month

LESS the cost of the products sold

LESS the month's general expenses.