Transcript Social welfare, taxation, Secondary benefits and work

Social welfare, taxation,
Secondary benefits and work
James McClean
Job Coach
Employment Response North West
11/07/05
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Key questions you need to ask.
 What
benefit are you on?
 Rules and regulations on your
Benefit
 What will you keep? What will you
lose?
 +’s and –’s
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Types of payment you will most
likely encounter.
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DA Disability Allowance
DB Disability Benefit.
IP Invalidity Pension
BP Blind Pension
UA Unemployment Assistance (Dole)
UB Unemployment Benefit (Stamps)
Disablement Pension / Unemployability
Supplement.
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Stamp based versus Means tested
 Stamp
based means you must have a
certain number of Stamps or PRSI
contributions to qualify.
 Means tested means that your
“means” and possibly means of your
spouse or partner may be taken into
account when calculating eligibility.
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REHABILITATIVE
EMPLOYMENT

If you take up Rehabilitative Employment,
while on Disability Allowance or Blind
Pension the first E120 of earnings is
disregarded in the means test. If on
Invalidity Pension you may work up to 20
hours. You will require medical evidence
from your GP and written approval from
the Department of Social Welfare.
Employment on a CE scheme will be
treated as rehabilitative.
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•IP Invalidity Pension

Longer term version of Disability Benefit.
Generally you would need to be on DB for
at least one year before you would apply
for this payment unless in exceptional
circumstances such as diagnosed as
terminally ill etc.
 Higher rate of payment than DB and also
includes free travel and is a “passport” to
applying for other secondary benefits such
as free TV licence, electric and phone
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MEANS TESTED PAYMENTS
DA Disability Allowance
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Paid in recognition of the difficulty that an
individual with a disability will have in
obtaining employment as opposed to
someone of the same age and sex who
does not have a disability.
 Individuals means are assessed but for
someone living with parents then income
of parents are not taken into account.
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UNEMPLOYMENT ASSISTANCE
 Your
means and means of your
partner / spouse are taken into
account.
 To qualify you must fulfill three
conditions :
 You must be AVAILABLE, FIT FOR
AND ACTIVELY SEEKING FULL TIME
EMPLOYMENT.
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Blind Pension
 Similar
to Disability Allowance
 Person may qualify for Blind
Supplement as well but will probably
lose it if taking up employment due
to means testing by Health Services
Executive who administer the
Supplement.
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•DB Disability Benefit.
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Unable to work due to illness or disability.
 Must have PRSi contributions to qualify for
this payment.
 (Be careful! As if you have less than 260
paid contributions you may only receive
this for 12 months)
 Generally seen as a short term payment (If
you were off work for two weeks or so with
the “flu” this is the payment you would be
receiving)
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UB Unemployment Benefit

Very similar to UA except you are entitled to
draw this benefit based on your PRSI
contributions so you are not means tested.
 Normally look at your record of
contributions fronm two years previously
so if you were making claim in 2005 then
you would need to have the correct amount
of contributrions in 2003.
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•Disablement Pension
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If you have had an injury at work and have
claimed occupational injury benefit then
you may qualify for this.
 The injury must have resulted in a residual
disability.
 < 20% loss of faculty theen you recieve a
lump sum payment.
 >20% loss you will be awarded a pension
payable alomg wth other payment such as
DB or IP.
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DB or IP Rehabilitative employment
•Before anyone on DB or IP can take up employment and keep their
benefit they must ABSOLUTLY apply to Social and Family affairs to
do so. This is called applying for an exemption. The work must be
classed as “Rehabilitative” BY the Department and an exemption will
normally be granted for 6 or 12 months. A further exemption may be
granted at the end of that period if the work is deemed to be
rehabilitative or fitting that person out for taking up alternative
employment or that the persons health, e.g. Mental health is
improving through engagement in that employment. Normally takes
about 6 weeks for exemption to be granted or not.
• The person can work up to 20 hours per week and they can earn as
much as they want / can without it affecting the rate of IP they are
receiving. Spouse/partner's payment be be affected if it is means
tested.
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Example of effects on partners means
tested payment.
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If working 1,2 or 3 days earning €120.00 per week.they
would disregard approx €44.44 and then deduct half of
the difference off partners payment so €120.00-€44.44=
€75.56. €75.56/2= €37.28 deduction from
spouse/partner payment.
If working 4,5 or 6 days days earning €120.00 per
week.they would disregard approx €88.88.and then half
of the difference off partners payment so €120.00€88.88= €31.12. €31.12/2= €15.56 deduction from
spouse/partner payment. If both working then both
would lose the above rates.
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Retention of Secondary benefits
•Generally, you will automatically retain any secondary benefits
you are receiving such as Free Trave,l when engaged in
APPROVED rehabilitative employment but be aware that means
tested payments or benefits such as Rent allowance, Medical card,
Mobility allowance, Blind Welfare allowance etc MIGHT be affected
by earnings either up to or above the €120.00 threshold
mentioned. For example there is a disregard by The HSE of
€120.00per week from rehabilitative employment when assessing
for Rent Allowance but there is no automatic disregard when
assessing Medical card eligibility and it is solely at the discretion
of each HSE area office whether to grant the medical card or not.
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Rules for working whilst on Unemployment
Assistance
•Contrary to belief you CAN legally work whilst drawing “Dole”!
•Maximum days of work are 3 in each working week.
•Example :Single person working 3 days and earning €70.00 per
day.
•Disregard first €10.00per day, they lose 60% of balance from
Dole. So €60.00*60% =€36.00 multiplied by 3 days =€108.00
deducted from “Dole” payment of €148.80. Income would be,
earnings = €210.00 +Dole of €40.80.
•There is NO €10 disregard if person is married so they would
lose 60% of the whole €70.00 per day worked which is a
deduction of €42.00 per day of their Dole.
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Rules for working whilst on
Unemployment Benefit
•You can work up to a maximum of 3 days per week and you
lose a days UB for each day worked, even if you only work for 2
hours in a day it is classed as a days work. Income disregards
or amount earned do not affect your UB payment.
•Remember whether on UA or UB you are expected to be
actively seeking full time employment on the days you are not
working so if a client only wants to or is unable due to illness /
disability to seek full time employment then this payment may
not suit them as they may be asked to provide evidence of
pursuing full time employment by their Social and Family Affairs
office.
•If a client becomes ill or disabled whilst in receipt of UA or UB
they can apply for DB, IP, DA,BP or possibly Supplementary
Allowance or Occupational Injury Benefit.
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FAS SUPPORTS
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Employment Support Scheme- Fas provide
financial support to an employer who takes
on a person with a disability.
 Workplace/Equipment Adaptation GrantProvides funding up to 6,348 to make the
workplace more accessible or equipment
easier to use
 Supported Employment Programme- In
conjunction with the Health Board, a job
coach is available to approach employers
and assist in any way they can.
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Taxation
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New employee must gain a Tax Credit
(used to be Tax free allowance) or
employer is obliged to tax their earnings
at emergency tax rate. This is refundable
after Tax credit has been applied for and
gained, refund is paid directly by the
employer if claimed during the same tax
year, if claimed after that then apply to
Revenue Commissioners.
 Fill a Form 12A and send to Revenue
commissioners to gain your Tax Credit
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What is Taxable and what is not?
Disability Allowance is Not Taxable income.
 Blind Pension IS Taxable but recipients are
entitled to extra Tax credits.
 First 6 weeks of Disability Benefit is Not
taxable and after that only the adult portion is
taxable i.e. any DB claimed for dependent
children is not taxable at all.
 Income arising from investments made with
compensation arising from court awards for
example a road traffic accident and where
this is the sole or main income for the person
then it is exempt from DIRT. and certain other
taxes.
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Pay Related Social Insurance
 ALL
employees MUST have some
form of “stamp” put on for them by
the Employer.
 Class J stamp at least but if earnings
are more than approx. €36 per week
then class “A” stamp is required.
 Employees holding a Medical Card
only have to put on a class A2 stamp.
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What does a “Stamp” entitle me to?
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Occupational Injury Benefit (employees
are covered for accident or disease that
occurs during course of their employment
duties, even travelling directly to or from
their employment!)
 Build up entitlement to Stamp based
payments / benefits such as DB, IP,
Contributory Old age pension, Dental and
optical benefits
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Disabled Persons Grant
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This is a grant paid by the County Council
to adapt houses for people with
disabilities. Works include provision of
ramps, widening of doorways, adding a
downstairs bedroom or bathroom etc.
They pay 90% of the cost up to 20,320 for
private houses. Where a house is being
built specifically for a person with a
disability there is a grant of 12,700
available. Apply to the local Co.Co.
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Free Travel Pass
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Who qualifies?
 Everyone over 66 and living in the state
 Anyone on Disability Allowance, Blind
Pension or Invalidity Pension
 People who transferred to Retirement
Pension from DA or Invalidity at 65
 Anyone receiving Carer’s Allowance
Note: You may also apply for a Companion
Pass if you are medically certified as unfit
to travel alone
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Transport and Travel
Disabled Person’s Parking Card
Allows people to park in designated parking
areas and free of charge in disc parking
areas. It is valid for 2 years and costs 25
euro. It applies to the person not the car.
You will automaticall qualify if you have a
Primary Medical Certificate. Can be used
abroad. Forms available from Irish
Wheelchair Association, Ballinagappa
Road, Clane, Co.Kildare. Tel 045 893094
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Transport and Travel
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Disabled Drivers and Passengers Tax Relief
You must have a Primary Medical Certificate.
You may claim a refund /exemption of VAT and VRT
on the price of the car and a refund of VAT on
price of any necessary adaptations.
Repayment of excise duty on fuel up to 600 gallons
a year.
Exemption from motor tax.
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Transport and Travel
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Motorised Transport Grant
This is a means tested Health Board grant
towards buying/adapting a car for
someone with a severe disability to help
them get or keep employment.
You must be over 17 and under 66 and hold
a full driving licence.
If you get the grant you will not get Mobility
Allowance for 3 years.
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Transport and Travel Procedures
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Mobility Allowance
This is a means tested Health Board
payment for people who are unable to
walk or for whom the exertion required to
walk would be dangerous.
You must be between 16 and 66.
It is paid monthly and you will only get the
lower rate if you claim the Disabled
Drivers and Passengers Relief. High rate
156euro, Low rate 78
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Rent Allowance
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If your client moves to rented accommodation to pursue
employment they may qualify for Rent Allowance from the local
HSE. Please check with your area what is the maximum
permissible rent as say for example the “cap” is €85 per week and
your client moves into a flat at €90 per week then they would not
be entitled to any Rent Allowance.
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Local Authority housing rent is normally based on income so if
client is unemployed then they would be on the lowest rent but
this might increase if they take up employment but there is a limit
to the amount of increase on rent they can apply each year and
now many local authorities are disregarding a certain amount of
income from Rehabilitative employment for people with
disabilities when reviewing rents.
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Household Benefits package
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People on DA, BP, or IP can apply for this which
would give them free T.V. Licence, free electricity
units, free telephone units and they may also
qualify for Living Alone Allowance and free fuel.
People on DB cannot apply for the household
benefits package but it is worth checking
eligibility if they are living with someone who
would qualify in their own right
They are better to apply before they take up
employment
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