What should be done if a self-employed member has variable income?

When assessing the income of a self-employed member with variable earnings, the most accurate approach is to calculate using the least of the past year's averages. This method helps to provide a conservative view of the individual’s financial situation, accounting for fluctuations in their income.

Self-employed individuals often experience variability in their earnings due to seasonal factors, market changes, or business cycles. By considering the least average from the past year, you ensure that the assessment remains cautious and reflects potential downturns in income. This way, if the income dips significantly, it does not jeopardize the ability to make future payments or meet financial obligations.

Using just an average of the last three months might not provide a complete picture, especially if those months reflected unusually high earnings that are not sustainable. Factoring in the last full year could fail to account for the most recent downturns. Ignoring variable income altogether can be risky, as it might eliminate important financial data that reflects the individual’s reality.

Thus, employing the least average from the past year is paramount in creating a responsible and realistic view of the self-employed member's financial stability.