Self-Employment & Side Hustle Rules Under ODSP

Operating a Small Business or Freelancing on ODSP

Many ODSP recipients run small businesses, freelance, sell crafts, or operate side hustles. ODSP policy actively encourages self-employment and provides clear rules on calculating net business income.

Gross Income vs. Net Business Income

Unlike standard employment paystubs, self-employment earnings are calculated as:

Net Business Income = Gross Business Revenue − Approved Operating Expenses

ODSP applies the $1,000 net monthly earnings exemption to your Net Business Income, not your gross revenue!

Approved Business Expenses

Under ODSP Directive 5.4, allowable business expense deductions include:

• Raw Materials & Stock: Supplies or inventory purchased for resale.
• Tools & Equipment: Computers, specialized tools, or machinery directly used for business.
• Operating Costs: Business web hosting, software licenses, advertising, and professional fees.
• Vehicle & Transportation Costs: Actual mileage or transit expenses incurred exclusively for business travel.

Reporting Requirements

1. Monthly Reporting: Submit your self-employment income and expense logs to your caseworker by the 7th of each month using the Self-Employment Report Form.
2. Receipts & Invoices: Keep all business receipts, bank statements, and client invoices organized for auditing purposes.
3. $100 Work-Related Benefit: Self-employed recipients who earn net income in a month qualify for the $100 Work-Related Benefit added to their ODSP check.

Discuss your self-employment plan with your caseworker early. ODSP can approve startup expense deductions and even assist with business startup costs under employment supports.

Caseworker Tip