CHANGES TO ODSP RULES ABOUT EARNINGS
Starting in November, 2006
Old Rules (before November, 2006)
Earnings up to $160—single person; or $235--family / - You keep all you earn, in addition to your ODSP cheque.Earnings above $160 / - You keep 25 cents out of every dollar you earn above $160 (single) or $235 (couple.
New Rules (starting November 1, 2006)
All Earnings / - You keep 50 cents of each dollar you earn.If you report your earnings to the Ontario government each month / - You receive an extra $100 added to your income cheque each month. This is called the “Work Related Benefit”
How to get the Work Related Benefit
The Work Related Benefit is automatically added to your ODSP cheque for every month that you report earnings from employment or net income (after deductions) from self-employment. You have to send in the Employment/Training Income Report (ETIR) which comes with your monthly ODSP cheque. You must include copies of your pay stub showing your gross earnings and deductions.
You do not have to give ODSP any receipts for any expenses in order to get this. This benefit is not just for transportation; even if you get transportation paid for medical expenses, or for voluntary participation in OW, or any other reason, you can still get WRB.
Self-employed people
People who are self-employed need to have net positive income, after expenses, in order to get the Work Related Benefit. People used to have to send in all their receipts for expenses related to their business. Now, they will not have to send in receipts for any expenses of $100 or less per month. ODSP will automatically deduct $100.00 per month from the gross self-employment income. However, if someone has expenses greater than $100 per month, they can submit receipts and claim the greater amount (as long as those expenses are approved).
Examples: How Earnings affect your ODSP amount
January 16 to February 15, 2007
You earn $160.00 from a job
> You report your earnings to ODSP.
February 2007 ODSP cheque
ODSP basic needs
and shelter $979
Earnings $160 – 50% - 80
Extra Income +100
Income Cheque $999
PLUS $160 earnings; total income for month = $1159
January 16 to Feburary 15, 2007
You earn $80.00 from self-employment*
> You report your earnings to ODSP
ODSP deems expenses of $100. Therefore you do not have any net business income. You do not have anything deducted from your ODSP cheque and you do not get the WRB.
February ODSP cheque:
Basic needs and shelter $979
No deductions, no additions
You keep your $80 so total income for the month=$1059
*It is likely that casual employment where you don’t get a pay stub with tax and EI deductions, such as babysitting or shoveling snow, will be considered self-employment.
Employment Start UP Benefit (ESUB)
ESUB is a payment for some costs of starting work, such as work clothes, personal grooming needs, tools, licences, etc. It is a payment that you can get if you start a job, casual employment, self-employment, or a training program, or change jobs, start a job search or an employment preparation activity, including a volunteer placement.
To get this payment you just need proof that you are starting a new job, training, job search or volunteer placement. The maximum amount of ESUB in any 12 months used to be $253; now it is $500. If you already got $253 in the last year, you cannot get the additional $247 if you are still working at the same job. However, if you are starting a different job or a new employment activity and have new costs, you should be able to get the additional amount.
Other deductions and benefits
Allowable deductions for childcare and for disability-related expenses have also been raised. There are new benefits if you leave ODSP for work, and it is easier to get back on ODSP if you need to. For more information see the Ministry Policy Directives or the Fact Sheet “ODSP Earnings and Employment Changes April 1st and November 1st” by ISAC, available at www.odspaction.ca)