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Wisconsin Department of Children and Families Wisconsin Works (W-2) Manual |
3.2.8.1 Qualified Alien Deeming
3.2.8.2 Farm & Self-Employment Income
3.2.8.3 Child Support Income
3.2.8.4 Supplemental Security Income (SSI) and Caretaker Supplement
(CTS) Income
3.2.8.5 Census Employment and Other Temporary
Employment Income
All earned and unearned income of all the W-2 Group members is counted in determining the 115 percent gross income test (see 3.2.1) unless specifically disregarded. See 3.2.9.1 for disregarded income.
United States Citizenship and Immigration Services (USCIS) may require certain qualified aliens who are admitted as a permanent resident alien to have a sponsor sign an affidavit of support to ensure the immigrant does not become a public charge. For some sponsored qualified aliens, if the sponsor makes income available to the alien, the sponsor’s income can be counted or ”deemed” to be available to the sponsored alien when determining W-2 financial eligibility for that alien.
Certain groups of aliens typically have both an agency sponsor and an individual sponsor such as a church or family member. However, these individuals and agency ”sponsors” do not meet the USCIS definition of a sponsor because neither the agency nor individual sponsor have a legal obligation to provide financial support beyond the first month in the United States and they do not have to ensure that the alien does not become a public charge.
Do not deem a sponsor’s income for the following groups:
1. Aliens granted asylum (asylees) under section 208 of the Immigration and Nationality Act (INA);
2. Refugees who are admitted to the United States under section 207 of the INA;
3. Aliens paroled into the United States (parolees) under section 212(d)(5) the INA for a period of at least one year;
4. Aliens whose deportation is being withheld under section 243(h) of the INA;
5. Amerasian Immigrants, as defined in section 584 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act of 1988; and
6. Cuban-Haitian entrants.
Self-employment income is earned directly from one's own business rather than as an employee with a specified salary from an employer. Self-employment income is reported to the IRS as farm, self-employment, rental, or royalty income. All self-employment income is earned income, except royalty income and rental income where the individual does not actively manage the property 20 or more hours a week.
The FEP must identify a self-employment business using the following criteria:
1. By IRS Tax Forms
2. By Organization
Self-employment income can come from a business organized in one of three ways:
a. A sole proprietorship is an unincorporated business owned by one person.
b. A partnership exists when two or more persons conduct business. Each contributes money, property, labor, or skills, and expects to share in the profits and losses. Partnerships are unincorporated.
c. An S corporation is a business that elects to pass corporate income, losses, and deductions through its shareholders. Shareholders report income and losses on their personal tax returns and are taxed at individual income tax rates.
3. By Employee Status
A self-employed person earns income directly from his or her own business, and:
a. Does not have federal income tax and FICA payments withheld from a paycheck.
b. Does not complete a W-4 for an employer.
c. Is not covered by employer liability insurance or worker's compensation.
d. Is responsible for his or her own work schedule.
Any wages or salary that an individual receives from a corporation owned by a W-2 group member shall be considered wages from employment and not self-employment income.
The W-2 agency must count the gross receipts from farm and self-employment businesses. Gross receipts must not be adjusted based on expenses. Monthly farm and self-employment income must be calculated using IRS tax forms completed for the previous year or average monthly anticipated earnings using the Self-Employment Income Report (DHS 00107).
Calculate self-employment income based on anticipated gross earnings using the Self-Employment Income Report Form (SEIRF) when:
1. The business was not in operation for at least one full month in the prior tax year;
2. The business has not been in operation for six or more months at the time of the application; or
3. There was a significant change in circumstances and the taxes no longer represent the current earnings.
FEPs must ensure the change is actually a significant change, and not just a normal fluctuation in the business, seasonal employment, or a circumstance that does not affect income over time. Examples of a significant change in circumstances include, but are not limited to:
1. The start of a business.
2. The owner sold a part or all of his or her business.
3. The owner is ill or injured and will be unable to operate the business.
4. There's a substantial cost increase causing less profit for each unit sold.
5. Sales are consistently below previous levels beyond normal sales fluctuations.
6. The business is consistently earning above previous levels beyond normal fluctuations.
Count non-regular collections of arrears as an asset. (See 3.3.1)
In addition to any adult's SSI payments, CTS payments must also be counted as the SSI parent’s income. Children's SSI payments must not be counted in the W-2 Group's income. (See 3.2.9.1) Treat retroactive CTS payments as income in the month received and any amount remaining becomes an asset in the following month.
Income from temporary employment, including employment as a census enumerator, is counted in determining W-2 financial eligibility.
History: Release 22-10: Release 19-06; Release 16-01; Release 14-03; Release 10-02; Release 10-01.