Wisconsin Department of Children and Families - Division of Early Care and Education
Bureau of Child Care Subsidy Administration

Wisconsin Shares Handbook

 

 

16.2.2 Ongoing Self-Employment Authorizations

Self-employment is considered ongoing after the annual renewal that follows the 24th month of new self-employment or when the business has been operating for more than 24 months at application. The 24-month clock begins when the self-employment business begins, not when the parent applies for Wisconsin Shares. Foster care parents, subsidized guardians, interim caretakers, relatives with court-ordered placement receiving the Kinship Care Payment, and individuals caring for children in tribal placement homes under a substantially similar Wisconsin tribal law are not subject to the minimum wage calculation (see 16.2.3).  

An authorization assessment is required at each annual renewal. The authorized hours for ongoing self-employment must be based on monthly gross self-employment income divided by Wisconsin’s minimum wage and then divided by 4.3, rounded up to the next whole number.

Note: The maximum weekly hours for self-employment authorizations displays in CSAW on the Case Activity Summary page based on the information entered on the CWW Self-Employment page. Agency workers do not need to manually calculate the number of hours that can be authorized for self-employment. However, the parent schedule and child care need schedule must still be entered to determine actual child care need.


For ongoing businesses, the total authorized hours, including travel time, cannot exceed the calculated number. If the number of hours requested for child care is less than the calculated amount, agency workers must use the requested number of hours including travel, up to the calculated hours. Self-employed parents are eligible for school closed hours for school-age children in addition to the maximum calculation.

Example 1 (Ongoing self-employment): Tiffany’s cake business has been in operation for three (3) years and has a monthly gross income of $600. CSAW will calculate a maximum number of hours that can be authorized based on $600/month divided by $7.25 to get 82.75 monthly hours, and then divided by 4.3 which equals 19.24 rounded up to 20 weekly hours. The total is displayed on the CSAW Case Activity Summary page. If Tiffany’s child care need exceeds 20 hours per week, the worker must override the derived hours in CSAW to 20 hours per week to ensure that the total authorized hours, including travel time, do not exceed the maximum amount calculated on the CSAW Case Activity Summary page. If Tiffany’s child care need is 10 hours per week, up to 10 hours of travel time per week can be added to the authorized hours.

 

Example 2 (Changing self-employment): Jonathon is a mechanic and has been operating his business from his home for the past three (3) years. He is receiving Wisconsin Shares for his child, Joseph. Now, Jonathon wants to close the mechanic shop and start a new business as a handyman. Jonathon has expended his new 24-month self-employment period. His handyman business is new, but he is not eligible for another new 24-month period. Joseph’s weekly authorized hours must be based on Jonathon’s monthly gross self-employment earnings divided by the Wisconsin minimum wage and then divided by 4.3 and rounded up.

 

When there are two (2) self-employed parents that have different maximum calculated hours in CSAW, the agency worker must use the lesser of the two (2) calculations for the maximum authorization amount.

Example 3 (Two-parent household, different minimum wage calculations): Kabo works on their farm from 6 a.m. to 6 p.m. He has been operating his farm for 10 years. His spouse, Doua, has operated her own self-employment business making purses for five (5) years. They need Wisconsin Shares for their child, Tia, while they work during the day. Kabo’s monthly gross self-employment earnings divided by the Wisconsin minimum wage divided by 4.3 results in a maximum of 35 authorized hours per week. Doua’s calculation results in a maximum of 20 authorized hours per week. Tia can receive a maximum of 20 authorized hours per week because the authorized hours must be based on the lesser of the two (2) calculations.

 

Example 4 (Two-parent household, no overlapping schedules): Keisha and Rick are married and have four (4) children. Rick has an auto repair business. Rick works at the auto repair business from 8 a.m. to 5 p.m. Monday through Friday and on Saturday mornings. The auto repair business produces a monthly gross income of $1,000. Keisha has her own small business selling home décor. The monthly gross income from Keisha’s business is $600. Keisha works 15 hours per week, always in the evenings after Rick is home. Keisha and Rick do not have overlapping schedules; therefore, they are not eligible for an authorization.

 

Example 5 (Two-parent household, shared self-employment business): Mary and Tom are married and share a sole proprietorship business selling honey. Their monthly gross income of $1,000 is divided equally on two (2) Self-Employment pages in CWW. The maximum weekly authorized hours calculation uses $500 for Mary and $500 for Tom. Because the calculations are the same, the maximum weekly authorized hours will be $500 divided by the Wisconsin minimum wage and then divided by 4.3 and rounded up. ($500/$7.25/4.3 = 16 total monthly hours allowed which also includes travel time)

 

In a two-parent household where one (1) parent is in a new self-employment period and the other parent is engaged in ongoing self-employment, the authorization can be up to full-time (50 hours per week, including any travel time that is needed) until both parents have used their 24-month new self-employment period. Authorizations must be based on the parents' overlapping schedules and child care need.

Example 6 (Two-parent household, new and ongoing self-employment): Casey is self-employed as a hair stylist. Her business has been in operation for five (5) years. In May, she applies for Wisconsin Shares. Because her business started more than 24 months ago, it is considered ongoing and her child’s authorization must be based on the minimum wage calculation. In August, her child’s other parent, Matt, moves into the home. Matt is starting his own business as a landscaper. Their child’s authorization can be up to full-time, based on their overlapping schedules, until the annual renewal following the 24th month of Matt’s new self-employment.

 

For additional two-parent policies, see Section 16.3.

 

This section last updated 12/1/2022