Author: Stephen Goldberg

CalFresh treatment of income from gig economy

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The California Department of Social Services (CDSS) has issued clarification about how CalFresh handles income from the gig economy.  Gig economy jobs are short-term jobs coordinated by a third party online tools such as Uber, Lyft or DoorDash.  CDSS states that gigs are paid on a per task basis by the third party is working as an independent contractor which means that CalFresh self-employment income rules apply.

In determining self-employment income, counties must only consider income and expenses that have been verified.  CalFresh recipients must provide verification of the gross amount of their self-employment earnings to the county.  When verifying income, CalFresh recipients must be careful that direct deposit pay stubs may not reflect income prior to deductions taken by the third party.

Both the gross and net income are used when determining CalFresh eligibility and amount of benefits.  In determining gross income, recipients are entitled to an income deduction for self-employment of wither the actual costs of producing self-employment income or 40% of the gross amount earned.  In the gig economy, these costs can include commissions, application fees, gas, car washes, tolls, uniforms and cell phone costs.  Deductible costs do not include net losses from previous periods, taxes, money set aside for retirement, other work related personal expenses such as transportation to and from work, and depreciation.

Recipients may choose only one deduction type, and that method can only be changed recertification or every six months, whichever is earlier.

All other procedures for determining gross and net income apply to income from the gig economy.  (ACIN I-31-19, May 9, 2019.)

IHSS provider travel claims

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The California Department of Social Services (CDSS) has issued clarification about IHSS provider travel claims.  IHSS providers must be paid for time spent traveling between locations where services are provided.  The provider must submit a Provider Workweek & Travel Time Agreement (SOC 2255) to be paid travel time.  Counties must accept travel claims, including retroactive claims for travel prior to the filing of the SOC 2255 form, as long as the travel claim is consistent with the information on the SOC 2255.  The provider must submit a Travel Claim Form (SOC 2275) for each time period that the provider is eligible to receive travel time.  For retroactive claims, county staff must request printing of the SOC 2275 and the print vendor will mail the retroactive SOC 2275 to the provider.  No retroactive claims for travel prior to February 1, 2016 will be accepted.

When a provider lives with a recipient, the provider is entitled to compensation for travel time if the provider provides authorized services for the recipient and then travel to another location to provide authorized services for another recipient.  The provider is entitled to compensation for travel back to their home if that travel is for the purpose of providing additional authorized services for the recipient with whom the provider lives.  Providers are encouraged to develop a work schedule to avoid unnecessary travel.

Counties should request an updated SOC 2255 form only if there is a permanent change in the provider’s travel time. The provider is not required to complete the Recipient and Provider Workweek agreement (SOC 2256) unless the county determines that the provider needs help in scheduling service hours to ensure that the provider stays within the recipient’s monthly authorized hours.  (ACIN I-18-19, March 29, 2019.)

IHSS Advance Pay overpayment recovery

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The California Department of Social Services (CDSS) has issued a new notice of action from for recovery of In Home Supportive Services (IHSS) advance pay overpayments.  Advance pay allows recipients to receive an advance payment for their monthly IHSS services and pay their providers directly for their services.  Advance Pay is available only for Severely Impaired IHSS recipients as defined by Welfare and Institutions Code Sections 12303.4(d) and 12304(d).

Recipients receiving Advance Pay are responsible for reconciling timesheets at the end of each month.  When a recipient does not submit reconciling timesheets within 45 days of the issuance of date of the advance payment, there is a rebuttable presumption that the unreconciled amount is an overpayment.   This presumption is rebuttable and counties should attempt to assist recipients with any reconciliation issues.

CDSS issued a form notice of action, NA 1262, for Advance Pay overpayment recovery.  Counties should use this form to inform recipients of Advance Pay overpayments.  The form informs of the overpayment and states that collection can be by offset from future Advance Pay payments, and that recipients can directly pay some or all of the balance to shorten the time period of warrant offset.  (ACIN I-27-19, May 7, 2019.)

Increase in CAPI payment standard

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The payment standard for the Cash Assistance Program for Immigrants (CAPI) program is increasing by $10 per month for an individual and $20 per month for a couple effective June 1, 2019.  This increase is because of the end of the SSI cash-out.  CAPI recipients received less than SSI/SSP recipients because they were eligible for CalFresh but SSI/SSP recipients were not and received an extra $10 per month for an individual and $20 per month for a couple.  Because SSI/SSP recipients will be eligible for CalFresh instead of receiving the extra cash benefit beginning June 1, the CAPI payment standard is increasing to match the SSI/SSP payment standard.

Counties and CAPI consortia must send each of their CAPI recipients a notice of action reflecting this grant increase.  (ACIN I-23-19, April 8, 2019.)

CalFresh joint application processing with Social Security Administration

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The California Department of Social Services (CDSS) has provided guidance about joint processing of CalFresh applications by the Social Security Administration (SSA) and county welfare departments for SSI recipients.

SSI recipients will be eligible for CalFresh beginning June 1, 2019.  Households that include only SSI recipients may apply for CalFresh at a SSA office.  SSA must inform SSI applicants or recipients of their right to apply for CalFresh at the SSA office or their right to apply at the county welfare department whenever a member of a household consisting of only SSI applicants or recipients conducts business with SSA. SSA will not assist households with both SSI and non-SSI members.

SSA will screen all households for CalFresh eligibility.  Based on the screening, SSA must give the household the opportunity to apply for CalFresh.  If a household with only SSI applicants or recipients agrees, SSA will assist the household in submitting and completing a CalFresh application.  These household may also complete their annual recertification at the SSA office.

SSA can use the GetCalFresh.org online application starting June 1, 2019.  If the application is submitted using GetCalFresh.org, the county must not require an additional signature from the household.  If a household wants to submit a paper application, SSA will assist the household in completing the written application and will submit it to the county within one business day of receipt of the signed application.

For either type of application, SSA then will provide the following information to the household in writing: 1) contact information for the county; 2) remaining actions to be taken to complete the application; 3) a statement that the household should be notified of their CalFresh eligibility determination within 30 days; 4) the household’s rights and responsibilities; and 5) information about how to get an EBT card.

The expedited service timeframe will begin the date the county receives the application.  SSA will prescreen the application for entitlement to expedited service.

If the household chooses to apply with the county, SSA will inform the household of their option to apply online or take the paper application to the county.

Households in which all members receive or are authorized to receive SSI are categorically eligible for CalFresh unless the entire household is institutionalized or disqualified from receiving CalFresh.  In determining categorical eligibility, the county must verify that each member of the household receives or is authorized to receive SSI.  For persons who are categorically eligible, no additional verification is needed for resources, gross and net income, social security number, sponsored immigrant information, and residency.  Although identity must be verified, verification of identity in MEDS is sufficient and counties must check MEDS prior to requesting verification of identity.  Counties can verify SSI benefits through the State Data Exchange or the Beneficiary Data Exchange.

Households whose applications are processed using SSA joint processing will not be required to go to a county welfare department office or otherwise be subject to a county interview.  The county will not contact the household to obtain information unless the application is improperly completed, mandatory verification is missing or the county determines that information in the application is questionable.  Counties may contact the household to determine whether the household has expenses which can be deducted from income including shelter and medical expenses.

Counties must certify households processed under SSA joint processing for 24 months because all members of the household will be elderly or disabled.  If the household has no earned income, certification will be for 36 months under the Elderly Simplified Application Project.  (ACL 19-44, May 9, 2019.)

CAPI state interim assistance reimbursement authorization

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The California Department of Social Services (CDSS) has issued instructions regarding recovery of state interim assistance to Cash Assistance Program for Immigrants (CAPI) applicants while their applications are pending or during suspense periods prior to reinstatement of CAPI benefits.  The state interim assistance program allows counties to recover General Assistance or General Relief, and other types of cash or in-kind assistance paid to individuals while their CAPI application is pending from a retroactive CAPI award.  Counties may not recover state interim assistance reimbursement for payments or in-kind benefits financed wholly or partially with federal funds.  In addition to General Assistance or General Relief, state interim assistance can include food, clothing, shelter, personal and hygiene supplies or transportation passes.

To recover state interim assistance, the applicant must sign the SOC 455 form and CAPI benefits are granted.  The SOC 455 form is valid for only one year.  The county must also send a written notice of action NA 693 when recovering state interim assistance.

State interim assistance is separate from interim assistance recovery from SSI benefits, which is done through the Social Security Administration and requires signing of the SSP 14 form.  (ACIN I-24-19, April 8, 2019.)