Beginning on June 1, 2015, exclusions for work income will no longer apply when the income is recovered following a false declaration, regardless of the period covered by the recovery.
However, the exclusions shall apply when the non-declared employment income is less than or equal to the exclusions. As soon as the income is greater than the exclusions, it must be recovered in its entirety.
To establish the amount to be recovered, all work income for the period must be included in the calculation. As soon as non-declared work income is present following a false declaration, and if all income is greater than the permitted exclusions, all work income for this period is recorded and subtracted from the amount of the allowance. No exclusion is allowed for this month, even if other work income is not the subject of a false declaration.
Example 1
The date is August 15, 2015, and recovery for non-declared work income due to false declaration is initiated for the period of March to June 2014 concerning the file of a couple under the program of the Income Security Framework Policy. The non-declared income is as follows:
|
|
Allowance in March 2014: $955 |
Allowance in April 2014: $955 |
Allowance in May 2014: $955 |
Allowance in June 2014: $955 |
|
Work income in previous month |
$305 (false declaration [FD]) |
$350 (FD) |
$400 (FD) |
$300 (FD) |
|
Exclusion of $300 |
The exclusion does not apply |
The exclusion does not apply |
The exclusion does not apply |
The exclusion does not apply |
|
Recovery |
305$ |
350$ |
400$ |
$0 |
Total recovery of $1,055 ($305 + $350 + $400)
Example 2
It is the month of October 2015. The counsellor initiates recovery due to false declaration for the period of April to July 2015 concerning the file of a single adult under the program of the Income Security Framework Policy. Work income of $200 has been present in the file for these months.
|
|
Allowance in April 2015: $616 |
Allowance in May 2015: $616 |
Allowance in June 2015: $616 |
Allowance in July 2015: $616 |
|
Work income in previous month |
$200 & $305 (FD) |
$200 & $350 (FD) |
$200 & $400 (FD) |
$200 & $300 (FD) |
|
Exclusion of $200 |
The exclusion does not apply |
The exclusion does not apply |
The exclusion does not apply |
The exclusion does not apply |
|
Recovery |
$505 |
$550 |
$600 |
$500 |
Total recovery of $2,155 ($505 + $550 + $600 + $500)
Example 3
It is the month of October 2015. The agent initiates recovery for work income as new debt for the months of April to July 2016. During these same months, false declarations of work income, below the exclusions, have been made.
|
|
Allowance in April 2015: $616 |
Allowance in May 2015: $616 |
Allowance in June 2015: $616 |
Allowance in July 2015: $616 |
|
Work income in previous month |
$150 (FD) and $100 (ND) |
$100 (FD) and $350 (ND) |
$100 (FD) and $50 (ND) |
$100 (FD) and $300 (ND) |
|
Exclusion of $200 |
The exclusion does not apply |
The exclusion does not apply |
The exclusion applies |
The exclusion does not apply |
|
Recovery |
$250 |
$450 |
$0 |
$400 |
Total recovery of $1,100 ($250 + $450 + $400)
INCOME CESSATION
When recovery for false declaration is initiated due to non-declared work income and if during the same month, there has been cessation of another income in the same family, the concept of income cessation does not apply and the client is not eligible for a readjustment for the month in which cessation occurs. All income will be included for calculation in the following month.
When recovery for false declaration is initiated due to non-declared work income and if during the same month, there has been cessation of an income in another family, this latter income is excluded from the calculation for the following month. However, no readjustment for the same month is made. If a readjustment has already been made, recovery of the assistance that was paid will be initiated.
Example of income cessation
In January 2013, a client began receiving CNESST benefits of $300 per month. These benefits ended on January 15, 2015. With the application of income cessation, this person was entitled to a readjustment of $150 for the month of January considering that the income for this month was less than the income for December 2014.
After checking with Revenu Québec, the counsellor initiates recovery for false declaration due to non-declared work income for the period of December 2014 to June 2015. Seeing that it was a false declaration, the readjustment paid for January will be recovered further to the amount calculated as work income.
For the month of February 2015, no CNESST income will be considered in the calculation of the allocation; however, work income will have to be considered.