Social welfare, taxation, Secondary benefits and work

1
Social welfare, taxation, Secondary benefits and
work

• James McClean
• Job Coach
• Employment Response North West

2
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
• Measure twice and cut once!

3
Types of payment you will most likely encounter.

• DA Disability Allowance
• DB Disability Benefit.(ILLNESS BENEFIT)
• IP Invalidity Pension
• BP Blind Pension
• UA Unemployment Assistance (Dole)
• (JOBSEEKERS ALLOWANCE)
• UB Unemployment Benefit (Stamps)
• (JOBSEEKERS BENEFIT)
• Disablement Pension / Unemployability
  Supplement.

4
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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ILLNESS BENEFIT(FORMERLY DB) Disability Benefit.

• 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)

6
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

7
Disablement Pension

• 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.
• lt 20 loss of faculty then you receive a lump sum
  payment.
• gt20 loss you may be awarded a pension payable
  along with other payment such as DB or IP.

8
Job Seekers 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
  from two years previously so if you were making
  claim in 2007 then you would need to have the
  correct amount of contributions in 2005.

9
MEANS TESTED PAYMENTSDA Disability Allowance

• 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.

10
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.
• If you have been working and acquire Blindness
  then you MIGHT also qualify for Disability
  benefit as well.

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JOB SEEKERS ALLOWANCE

• Your means and means of your partner / spouse are
  taken into account.
• To qualify you must fulfil three conditions
• You must be AVAILABLE, FIT FOR AND ACTIVELY
  SEEKING FULL TIME EMPLOYMENT.

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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 or
  Disability Benefit you may be permitted to 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 may be treated as rehabilitative.

13
EARNINGS ABOVE 120.00 PER WEEK. DA BP

• From June 2006, earnings above 120.00 per week
  removed at rate of 50 e.g. 50 cent in the euro.
  UP TO A MAXIMUM OF 350 PER WEEK
  EARNINGS.ANYTHING ABOVE 350 PER WEEK RESULTS IN
  DEDUCTION OF EURO FOR EURO.
• Earn 350.00 per week then lose 115.00 from DA
  or BP
• Earn 360.00 per week and lose 125.00 from DA or
  BP

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Example of effects on partners means tested
payment.

• 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 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.

15
Rules for working whilst on Job Seekers Allowance

• 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 60.0060 36.00
  multiplied by 3 days 108.00 deducted from
  Dole payment of 185.80. Income would be,
  earnings 210.00 Dole of 77.80.
• 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.

16
DB or IP Rehabilitative employment

• Before anyone on DB or IP can take up employment
  and keep their benefit they must ABSOLUTELY 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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Rules for working whilst on Job Seekers Benefit

• You can work up to a maximum of 3 days per week
  and you lose a days JSB 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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Retention of Secondary benefits

• Generally, you will automatically retain any
  secondary benefits you are receiving such as Free
  Travel, 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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FAS SUPPORTS

• Wage Subsidy Scheme- Fas provide financial
  support to an employer who takes on a person with
  a disability.
• Workplace/Equipment Adaptation Grant- Provides
  funding up 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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OTHER FAS SUPPORTS

• Job Interview interpreter grant
• Personal reader grant
• Disability awareness training grant.
• Employee Retention Grant

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WAGE SUBSIDY SCHEME

• Biggest difference with old ESS scheme is that
  employee, if qualifying, CAN NOW access back to
  Work Allowance as well.
• Additional costs subsidy
• Employment Assistance officer.

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BACK TO WORK ALLOWANCE

• Retain percentage of social welfare along with
  unlimited wages over a 3 year period.
• Retain Medical Card and Free Travel for the 3
  years.
• Retain percentage of Rent Allowance on a sliding
  scale for 3 years (possibly 4!)

23
Taxation

• 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.

25
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?

• 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

27
Disabled Persons Grant

• 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 a maximum for
  private houses. Where a house is being built
  specifically for a person with a disability there
  is a specified grant for that as well. Apply to
  the local Co.Council

28
Free Travel Pass

• 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 Carers 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 persons 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
  automatically 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 or disabled drivers association
  Ballindine, Co Clare

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Transport and Travel

• 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

• 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
  driving licence. In certain cases family member
  can be the driver
• If you get the grant you will not get Mobility
  Allowance for 3 years.

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Transport and Travel Procedures

• 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.

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Rent Allowance

• 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.
• 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

• 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