Income ceasing can have an impact on the subsequent month and possibly on the current month. In the management of active files, the officer must therefore:
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determine the assistance for the subsequent month.
and, if required,
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check whether the assistance for the month of cessation should be adjusted.
IMPACT ON THE SUBSEQUENT MONTH
Income ceasing while assistance is received will be ignored in the calculation of the subsequent month provided that:
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the income meets the ceasing income concept (refer to 5.6.3);
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the type of income lasts for at least 3 consecutive months, including the months during which the beneficiary (or family) was not assisted. The calculation of the duration of the income type is performed by including the month in which the income began and the month in which it ceased;
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income was diligently reported. We consider that such is the case when Income Security is informed of an income (orally or in writing) not later than the last day of the month following the month when this income started.
When all these conditions are met, the income that ceased is entirely excluded for the subsequent month.
When one of these conditions is not met, income that ceased is considered in the calculation of the benefit for the following month. The rule of anteriority of the deficit applies.
IMPACT ON THE MONTH OF CESSATION
As soon as income ceasing is ignored in the calculation of the following month because conditions of sections R-84, 10 and R-101 are met, it is necessary to check whether an adjustment of the assistance must be paid for the month during which income has ceased by recalculating the benefit for that month. The total income of the month during which income ceased must be compared with the total income of the preceding month. Prior to that, a deficit must have occurred for the month when income ceased according to the rule of anteriority of the deficit.
With regard to work income, deductions provided for apply prior to the comparison of income (tax deductions, employment insurance premiums, contributions to the Quebec Pension Plan, union dues, 6% of income or $25 maximum, including a mandatory deduction for the insurance coverage of prescription medicines).
Exclusions apply following the comparison of income.
Regarding the application of the exclusions provided for in sections R-84 and R-88 prior to the comparison of income provided for this standard position is not supported in the computer system since the comparison of income of the month of cessation with the income of the previous month is currently undertaken following the application of the exclusions. Accordingly, this process will remain effective until the system is changed.
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When the result of the comparison indicates, following the application of the deductions, that the total income for the month of cessation is lower, the assistance for that month will be adjusted. Therefore, the deficit for the month of cessation is recalculated on the basis of the total income for that month and no longer for that of the preceding month. The adjustment to be paid corresponds to the difference between the amounts compared.
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When the result of the comparison indicates that the total income of the month of cessation, following the application of the deductions and exclusions, is equal to or in excess of the income of the previous month, the income of that month continues to apply on the month of cessation according to the principle of anteriority of the deficit. There is no adjustment of the benefit for the month when income ceases.
The amounts of family allowances paid under the Act respecting Family Allowances paid as a supplement to the national child benefit are not subject to the rule of income ceasing.
A beneficiary is considered as having reported his or her income diligently when he or she notifies the Income Security not later than the last day of the month following that when income began. Subsequently, if the same income ceased during assistance, the rule of income ceasing may apply when income was earned and reported lasted at least during 3 months.
Factor 4,333 will apply if the income ceasing covers the entire month.
The RECEIPTS of support payments are never considered in the comparison of income. In addition, they are processed on the basis of the rule of anteriority of the deficit.