What about Money? Understanding Income Sources after a Motor Vehicle Accident

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Catherine Lorraine Bryant
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1 What about Money? Understanding Income Sources after a Motor Vehicle Accident clinical excellence human focus 15 Barrie Blvd., St. Thomas, ON N5P4B9 Ph: Fx:

2 What about Money? Understanding Income Sources after a Motor Vehicle Accident Introduction At Novus Rehabilitation we understand that following an accident one of your primary concerns may be finances. In this free e-book we describe the most common income sources following a Motor Vehicle Accident. While each person s circumstances are unique, the income sources described below are those most commonly accessed. If you have any questions about this information or require further clarification we would be happy to help. Just call us at or info@novusrehab.ca and we ll be happy to help. Please note: The content and definitions in this document may be reproduced only for your own personal or educational use. This material is copyrighted and must be appropriately referenced and acknowledged as the intellectual property of Novus Rehabilitation. We recommend that any acknowledgement read: Information provided courtesy of Novus Rehabilitation. The information contained in this document may not be copied or otherwise reproduced for any commercial use or application. Income Replacement Benefits (IRB) If you are unable to work due to your injuries from an automobile accident, your insurance policy includes provisions for income replacement. The Income Replacement Benefit (IRB) will partially compensate you for your lost income. The money you receive through IRB is non-taxable. Money received from other income replacement sources may be deducted from the total amount of IRB you receive/are eligible for from your auto insurer, or money received from IRBs may be deducted from the total amount of money received from these other sources. Further, when you are beginning to return to work, the amount of IRB you are eligible for is recalculated. Novus Rehabilitation 2014 All Rights Reserved 2

In this free e-book we describe the most common income sources following a Motor Vehicle Accident.

3 Short Term Disability (STD)/Long Term Disability (LTD) Payments What is Short Term/Long Term Disability? You may be eligible for these benefits through your extended health coverage at your place of employment. Each workplace s policy is different and the amount and duration of Short Term/Long Term Disability payments varies. Contact your employer to determine if you are eligible for these benefits. Employment Insurance (EI) What are Employment Insurance sickness benefits? These are available through Service Canada to individuals who are unable to work due to sickness or injury. Eligible individuals may receive up to 55% of their average insurable weekly earnings up to a maximum amount. Is the EI sickness benefit taxable? All EI benefits are considered taxable income, so federal and provincial taxes are deducted when you receive them. Am I eligible for EI sickness benefits? You may be eligible for employment insurance sickness benefits if you have paid EI premiums (deducted from your salary/wages by your employer), you are unable to work due to your injury, your normal weekly earnings have been reduced by more than 40%, and you have accumulated at least 600 hours of insurable employment during the qualifying period (last 52 weeks). How do I apply for EI sickness benefits? To apply, you will need a signed medical certificate from your doctor. To determine if you are eligible for EI sickness benefits you must submit an application online. Can I receive EI while receiving IRB from my insurance company? If you are eligible to receive EI benefits, you will be asked to sign an agreement to repay all of these benefits if you then begin to receive additional income benefits for the same time period. This means that you are unable to collect money from the EI sickness benefits program and IRB at the same time. For more information on the EI sickness benefits program or to find your local Service Ontario office call or visit servicecanada.ca Novus Rehabilitation 2014 All Rights Reserved 3

Each workplace s policy is different and the amount and duration of Short Term/Long Term Disability payments varies. Contact your employer to determine if you are eligible for these benefits.

4 Ontario Disability Support Program (ODSP) What is the Ontario Disability Support Program (ODSP)? ODSP is an Ontario social assistance program that provides income and employment supports to eligible Ontario residents who have a disability. ODSP assists individuals in paying for their living expenses such as food and housing, and provides health benefits including drug and dental coverage. ODSP is a program of last resort, meaning that individuals are required to look for help from all other sources before turning to ODSP. These sources may include the Workplace Safety and Insurance Board (WSIB) and the Canadian Pension Plan disability benefit (CPP). Is the money I receive from ODSP taxable? Yes, it must be submitted on your yearly income tax return. Am I eligible for ODSP? You may be eligible for ODSP if you are over the age of 18, are an Ontario resident, are in financial need, and have a disability defined as a physical or mental impairment that restricts your ability to work, take care of yourself, or take part in the community. How to I apply for ODSP? To apply, you may begin completing the online application before bringing this application and supporting documents into your local ODSP office. You may also begin this process by calling or visiting your local ODSP office. Can I receive ODSP while receiving the IRB from my insurance company? The money you receive from ODSP is not deducted from your income replacement benefits. However, due to ODSP s repayment provision, if you are receiving an IRB, ODSP requires you to pay an equivalent amount of money back to the Ministry. For more information or to find your local ODSP office, call Service Ontario at or visit their website at Novus Rehabilitation 2014 All Rights Reserved 4

ODSP assists individuals in paying for their living expenses such as food and housing, and provides health benefits including drug and dental coverage.

5 Canada Pension Plan (CPP) What is the Canadian Pension Plan Disability Benefit? The CPP Disability Benefit provides a monthly benefit to contributors who are disabled as well as their dependent children. The amount of money received through CPP includes a fixed rate that everyone receives, plus a monthly sum based upon the total amount you contributed to CPP throughout your career. If you have dependent children under the age of 18, or children attending school full time between the ages of 18 and 25, you may receive additional money each month. Is the CPP Disability Benefit taxable? Yes, this benefit is taxable. If I receive money through CPP, do I continue to pay my CPP premiums? Once CPP payments are being paid out from the federal government, you do not have to continue paying your CPP premiums. Am I eligible for CPP s Disability Benefit? You may be eligible if you are under the age of 65, have stopped working due to a medical condition, and have paid into CPP for 4 of the last 6 years or have paid into CPP for 25 years and made valid contributions during 3 of the last 6 years. How do I apply for CPP s Disability Benefit? The application for disability benefits may be completed online or you may have a kit mailed to you. Can I receive CPP while receiving the IRB from my insurance company? The money you receive from CPP will result in a deduction in the amount received through your IRB. For more information or to find your local service Canada call or visit the Service Canada website at servicecanada.gc.ca Novus Rehabilitation 2014 All Rights Reserved 5

The amount of money received through CPP includes a fixed rate that everyone receives, plus a monthly sum based upon the total amount you contributed to CPP throughout your career.

6 Ontario Works What is Ontario Works? Ontario Works is a provincially funded program that provides financial assistance to help cover your basic living and housing expenses. Ontario Works may also provide you with employment assistance to help you prepare for and find a job. The amount of money you are eligible for through Ontario Works is determined by your family size, assets, income, and housing costs. Is the money I receive from Ontario Works taxable? Yes, it must be submitted on your yearly income tax return. Am I eligible for Ontario Works? You may be eligible for Ontario Works if you are an Ontario resident, require money immediately to help pay for food and housing costs and are willing to take part in activities to assist you in finding a job. Ontario Works will consider your family size, your assets, income and housing costs when determining your eligibility. How do I apply to Ontario Works? You may apply to Ontario Works online, in person, or via phone. Can I receive money from Ontario Works while receiving the IRB from my insurance company? Money received through Ontario Works is subject to repayment when and if IRBs are received. For more information or to find your local Ontario Works office call visit Novus Rehabilitation 2014 All Rights Reserved 6

The amount of money you are eligible for through Ontario Works is determined by your family size, assets, income, and housing costs. Is the money I receive from Ontario Works taxable?

Understanding Automobile Insurance and Rehabilitation in Ontario: Common Sense Definitions and Explanations

Understanding Automobile Insurance and Rehabilitation in Ontario: Common Sense Definitions and Explanations clinical excellence human focus 15 Barrie Blvd., St. Thomas, ON N5P4B9 Ph: 519-637-0981 Fx: 519-637-6997