Determination of Benefit/Payment

3-12 Calculation of Eligibility/Benefit


PURPOSE

1. To ensure the correct calculation of eligibility and benefits.

PRINCIPLE

2. Calculation of eligibility and benefits should be both consistent and fair.

POLICY

3. Sections 6(1)and (2) of the Social Assistance Regulations authorize the “budget deficit” method of determining the amount of a benefit, whereby the total of the financial resources (Sections 13) of an applicant is subtracted from the total allowable costs for approved items (Section 15 to 19), with the difference being the maximum amount which may be paid.

EXAMPLE: Maximum Allowance Expenses $345
Financial Resources Available to Applicant 150


BUDGET DEFICIT (NEED) $195

4. Calculation of Monthly Income

(a) In the calculation of financial resources, income from wages, employment benefits, transfer payments, self-employment or other financial resources, as set out in Section 13 of the Social Assistance Regulations, must be included as available income.

(b) Where an applicant is expected to receive long-term benefits, or a short-term applicant becomes long-term, and is declaring a regular weekly or bi-weekly income, (wages, unemployment insurance benefits, maintenance support payments, etc.), the income may be calculated as follows:


WEEKLY PAY (OR BENEFIT) X 4.3 (WEEKS/MONTH) = MONTHLY INCOME

NET BI-WEEKLY PAY (TAKE HOME) X 4.3 (WEEKS/MONTH) = MONTHLY INCOME

2 (WEEKS/PAY PERIOD)

(c) Income for emergency or short-term applications shall be calculated using actual earnings for the month.

5. Calculation of Monthly Expenses

Expenses allowed include an estimate of both “basic” and “special” needs in accordance with Sections 15 to 19 of the Regulations. Where the applicant has a regular weekly expense, such as for a babysitter or transportation, etc., the monthly total for that specific expense item is to be calculated as follows:

WEEKLY EXPENSES X 4.3 (WEEKS/MONTH) = MONTHLY EXPENSE

6. Amount Paid

(a) To determine the net amount of the applicant’s income, the worker must deduct any allowable exemptions/deductions, such as Income Tax at the set rate, CPP, EI and the like (involuntary deductions). These do not include items such as Canada Savings Bond purchases or RRSP contributions.

(b) A lesser amount of assistance may be paid if such lesser amount is requested by the applicant as per Regulation 24.

PROCEDURE

7. In the determination of benefits, applicants should be consulted as to their preference for
the method of calculation (i.e. actual or 4.3).

8. In calculating benefits, staff shall use applicable predetermined rates or expense ceilings as set out in approved policy.