Tag Archives: employment status

Is Interest Income Considered when Calculating an Income Replacement Benefit?

There are a number of ways that someone might earn interest income, be it on an investment, or as a result of late payment from a client. As with any income, interest must be reported for taxes. But, whether interest is included in the calculation of an income replacement benefit (IRB), is entirely dependent on whether the income was earned as a result of employment activities.

For the difference between employed and self-employed, please see our blog post on employment status.

Background

Subsection 4 (1) of the Statutory Accident Benefits Schedule (SABS), defines gross employment income as “salary, wages, and other remuneration from employment.” We note, of significance, is the connection between the income and employment.

For employed individuals, excluding self-employed, there are limited situations in which interest income is received as a result of their employment.  Continue reading

Offsetting pre-accident employment income with self-employment losses

Summary

The Henderson-Briehl arbitration decision became the guide for calculating pre-accident income for an individual who had both employment income and self-employment losses under the Old SABS (O. Reg. 403/96). However, the New SABS (O. Reg. 34/10) appears to revert back to the methodology which was regularly used prior to that decision.  As such, from September 1, 2010, self-employment losses can offset employment income in calculating an insured’s pre-accident income.

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