State of Kansas Department of Social and Rehabilitation Services
Don Jordan, Secretary
Integrated Service Delivery - Candy Shively, Deputy Secretary (785) 296-3271
Economic and Employment Support - Bobbi Mariani, Director (785) 296-3349
....Enriching lives today and tomorrow

MEMORANDUM

This memo provides implementation instructions and information for the following May 1, 2009, policy changes in the Kansas Economic and Employment Support Manual (KEESM):

1. All Programs
   
   
   1. Self-employment tax returns – See Summary of Changes, Item I, B, 1 and KEESM 7122.

Individuals who are self-employed must submit a copy of their most recent tax return as verification of income, when a tax return has been filed.  Examples of these tax forms have now been included in the KEESM Appendix to provide staff with instructions regarding how to budget income from a tax return. 

Appendix item P-12 includes forms for tax year 2007 and P-13 includes forms for tax year 2008.  Tax returns for tax year 2007 shall be accepted from applicants through April 15, 2009, when the deadline for tax year 2008 occurs.  After this tax deadline, 2008 tax returns are required as verification unless the applicant can provide documentation that they have requested an extension from the IRS. 

Instructions are provided for the following types of self-employment: personal businesses, farming, rental income, Partnerships, and S-Corporations. Instructions include required verification for each type of self-employment and which expenses may be allowed when itemizing.   

Note: For food assistance and TAF, see 7122.1(3) when determining costs of doing business for a home based operation. For a home-based business, shelter and utility expenses are generally not allowed for either program because for food assistance, utility expenses are included in the mandatory SUA and for TAF, they are included in the basic and shelter standards.

However, if the shelter and utility costs are clearly distinguishable from the home operation based on separate utility meters, separate rental costs or clearly distinguishable on the tax forms, they may be allowed for TAF. For food assistance, utility costs are never allowed for a home-based business and any rent/mortgage costs are allowed as a shelter expense, not a business expense.

For a non-home based business, utility and shelter expenses are allowable costs of doing business for both programs when using actual expenses to determine self-employment income.

2. FOOD ASSISTANCE 
   
   
   1. Re-establishing Eligibilty for Work Requirement Penalties – See Summary of Changes, Item VI, B, 2 and KEESM 3522. The following examples help to illustrate these policy clarifications.
      
      
      1. Applicant Situation-Household Member Penalized for Potential Employment – In food assistance applicant situations, if the household member penalized cooperates in the initial 30 day application time period, then benefits would be restored for that person to the date of application. Sue and her 5 children apply for food assistance on May 5th. Sue quit her job in April, without good cause. Her last paycheck will be May 8th. A potential employment penalty is applied and the case is approved for the 5 children. Sue is coded DI on SEPA. On May 20th, she completes the ES-4311, Declaration of Cooperation and Self-Responsibility Plan form. Since she has now met the requirements for re-establishing eligibility (KEESM 3522), and cooperated within the initial 30 day processing period, she is included in the case for June and restored benefits are provided for May.
         
         
      2. One Person HH Case is Closed for a Work-Related Penalty – For food assistance situations where a single person case was closed for a work related penalty and the person does not cooperate in the month following the month of case closure, eligibility can be reinstated the date the individual actually cooperates and reapplies for assistance. If the person cooperates in the month following the month of case closure, the case can be reinstated and benefits are not prorated. Bill fails to cooperate with Food Assistance E&T and his case is closed May 31,2009. On June 20th he contacts his worker and then cooperates on the 25th. Benefits are reinstated for June and are not prorated since he cooperated in the month following the month of closure. If Bill cooperated in July, he would also have to reapply and benefits would be prorated from the date of application.
         
         
      3. One Person Case Denied for Potential Employment Penalty – In food assistance applicant situations where a single person case was denied for a potential employment penalty and the individual cooperates in the 30 day processing timeframe, the application is reinstated and benefits prorated from the date of the application. Jack applies for food assistance on June 8th. He reports he was fired from his job in May. The employer verifies he was fired as he didn’t show for work for three days in a row. His last paycheck is June 12th for $500. He is not entitled to expedited benefits. His application for food assistance is denied on June 15th for a potential employment penalty. On June 22 he contacts his worker asking what he needs to do to get food assistance. On that same day he cooperates by signing the ES-4311, Declaration of Cooperation and Self-Responsibility Plan form. His application for food assistance is reinstated, and benefits are determined from the date of application since he cooperated within the initial 30 day processing period.