Effective 1/1/2011
OHP $20,000 Business Entity Income Test for Principals
A "principal" is a person with significant authority in a business entity, such as the proprietor of a sole proprietorship--including a person who meets the definition of "self-employed" in rule 461-145-0910 , a partner of a partnership, a member or manager of a limited liability company, or an officer or principal stockholder of a closely held corporation.
If an OHP financial group includes a principal, the business entity must pass a $20,000 gross income test. The business entities gross income cannot be prorated among principals for the purpose of the gross income test.
Calculate the average monthly gross income of the business entity using the following steps:
| A. | Total the business entity's gross income from the three calendar months prior to the budget month. |
| B. | Divide the total of the three months income by three. The result is the average income that is assigned to the budget month. |
If the average is less than $20,000, eligibility for OHP can be determined for the group.
If the average is equal to or greater than $20,000 and the group includes a child, pregnant person or a victim of domestic violence, total the business entity's gross income received and anticipated to be received in the budget month. If that single month's income is less than $20,000, eligibility for OHP can be determined for the group.
If the single month's income is equal to or greater than $20,000, the group is ineligible for OHP and is denied.
Budgeting: 461-150-0055 , Use of income: 461-160-0700
Determining Availability of Income: 461-140-0040