Section 812 - Simplified Calculation of Income for the Self-employed

Q. According to section 812, USDA is to establish a procedure before August 22, 1997 for States to use in submitting simplified methods of calculating self-employment income for approval. How should State agencies submit these requests?

A. Until regulations are published establishing a procedure, State agencies may continue to submit requests for simplified self-employment calculations in a format similar to administrative waiver requests.

Q. Will States be required to offer the client a choice of using actual costs or the simplified calculation?

A. We will either address this in the regulations or allow State flexibility in this area. In the interim, States may submit requests outlining the methods they want to use in estimating costs.

Q. Regarding the simplified calculation of self-employment income, will FCS get involved in establishing methodology for calculating income, or will it just set up a process for evaluating and approving State processes to ensure federal cost will not increase? Will the approvals be for an indefinite period of time?

A. We will probably set guidelines and require that the methodology be reviewed periodically.

Q. Who will be responsible for reviewing and approving State proposals for simplified calculation of self-employment income?

A. The national office will be responsible.

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