Important changes to the actual family allowance program will affect Quebec families as of January 2005. As of January 1, 2005, a refundable tax credit for child assistance (CIRSE) replaces family allowances, the tax credit for dependent children and tax reduction for families. The new CIRSE regime includes two components: the child assistance payment (PSAE) and the supplement for handicapped children.
The PSAE provides to families with dependent children under 18 years of age financial assistance, according to their income level. The Régie des rentes du Québec (RRQ) is mandated by the Ministère du Revenu du Québec to administer this new payment.
The PSAE is processed in the same fashion as the family allowance. The Ministère continues to pay the family allowance destitution clause in the files as of January 1, 2005. When a beneficiary does not receive the maximum payment for child assistance paid by the RRQ for eligible minor children, the Ministère pays an amount equal to the difference between the monthly adjustments fixed by Regulation and the payment for child assistance actually calculated by the RRQ.
This is what is known as the “FAMILY ALLOWANCE DESTITUTION CLAUSE” adjustment.
The “family allowance destitution clause” applies only where the family has at least one minor dependent child ELIGIBLE for family allowance and applies only to the child(ren) in question.
However, the order of the child in the family is determined on the basis of the age of ALL of the dependent children (minor and full age), the youngest being considered the first child.
MONTHLY ADJUSTMENTS
|
ORDER OF CHILD |
AMOUNT |
|||
|
|
EFFECTIVE 97-09-01 |
EFFECTIVE 98-07-01 |
EFFECTIVE 99-08-01 |
EFFECTIVE 00-08-01 |
|
First child Second child Third and each subsequent child |
$81.25 $81.25
$33.16 |
$81.25 $81.25
$81.25 |
$66.25 $66.25
$66.25 |
$52.08 $52.08
$52.08 |
|
Single-parent family supplement |
$108.33 |
|||
TAKING FAMILY ALLOWANCE INTO ACCOUNT
The amount of the family allowance provided by the RRQ:
- reduces the adjustments fixed by the Framework Policy to establish the “family allowance destitution clause”;
- does not reduce the adult-benefit for the family or any other amounts that might be provided;
- affects the adjustment for the current month - an exception to the principle of the anteriority of the deficit.
Family allowance provided by the RRQ to a beneficiary who is not a family member, but that is used by that person to meet the needs of a dependent child of the beneficiary family is DEEMED TO HAVE BEEN RECEIVED BY THE FAMILY.
The family is deemed to have received monthly the annual amount of the family allowance divided by 12 regardless of how often payments are made by the RRQ.
REPLACEMENT OF A FAMILY ALLOWANCE (FA) CHEQUE NOT RECEIVED FROM THE RRQ
It may happen that, in any given month, a beneficiary of the employment-assistance program does not receive a family allowance cheque from the RRQ for various reasons such as:
- change of address as a result of a move;
- cheque lost, destroyed or stolen (before or after endorsement).
The RRQ’s NORMAL time frame (2 to 5 weeks) for replacing a cheque may create a particularly difficult situation, depending on the amount in question and the claimant’s specific circumstances.
If there is a risk to health or safety, or a risk of complete destitution, the Income security may intervene and use its discretionary power.
However, before intervening in these specific cases, the officer must ensure that the claimant has asked the RRQ to apply its emergency cheque issuing procedure.
FAMILY ALLOWANCE PROVIDED BY RRQ
1. ELIGIBILITY
Family allowance includes a basic amount for each child. Not all parents are eligible to receive family allowance. Although family allowance is paid in respect of minor children, the eligibility requirements relate to the adults receiving the allowance.
Adults must meet the following three requirements to receive family allowance in respect of children:
be a resident of Quebec within the meaning of the Taxation Act (at the time the application is made);
AND
- be a Canadian citizen OR permanent resident OR visitor or permit holder within the meaning of the Immigration Act who has resided in Canada for at least 18 months OR refugee within the meaning of the Geneva Convention.
Only one of the spouses is required to meet this requirement;
AND
- be the person who is primarily responsible for the care and upbringing of the minor child and who normally lives with the child.
However, a refugee claimant or an applicant for permanent residence may receive the family allowance as a beneficiary if his or her spouse is a permanent resident or Canadian citizen.
- Only one person may be recognized as having the right to receive benefits for a given child.
- In the case of shared custody, only one parent may receive the family allowance.
- The mother is presumed to be the person caring for the child and receives the family allowance unless an application is made for the allowance to be paid to the father.
- In the case of the death of a sole-support parent or of both parents in a two-parent family, the person who assumes custody of the child receives the allowance.
2. APPLICATION
A person wishing to receive family allowance in respect of minor children is required to:
- submit an application for the child tax benefit to Revenue Canada Agency, which forwards the data to the RRQ;
- provide a Quebec income tax return for the previous year; where the person has a spouse, the spouse must also provide a return.
Tax benefit application forms are available at Revenue Canada offices, hospitals and CLSCs.
3. AMOUNT
The amount of the family allowance payable varies according to the composition of the family and the family’s income in the previous year.
The family income taken into account is the income entered on line 275 of the Quebec income tax return, or the income from line 220 of the simplified tax return of the adults deemed to be part of the family for income tax purposes and not necessarily the two parents.
The amount of family allowance thus established is not adjusted over the course of the year to take decreases in income into account except in the case of the breakdown of a relationship (separation or divorce) or death.