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Social welfare, taxation, Secondary benefits and work

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Title: 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.

5
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.

11
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.

12
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

14
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.

17
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.

18
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.

19
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.

20
OTHER FAS SUPPORTS
  • Job Interview interpreter grant
  • Personal reader grant
  • Disability awareness training grant.
  • Employee Retention Grant

21
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.

22
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

24
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.

26
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

29
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

30
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.

31
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.

32
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.

33
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.

34
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
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