Tag Archives: post-accident

The Insured Was Paid in Cash; Now What?

Cold, hard cash can be very hard to trace. This makes accounting for cash wages in Income Replacement Benefit (IRB) calculations tricky.

There are any number of instances when a person might be paid in cash: tips for waiting tables, housekeeping, contractors, whether employed or self-employed, and often when working for family members.

So, how do we prove a claimant earned a particular wage where they were paid in cash?

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IRB Methodology – How do you calculate an Income Replacement Benefit


It appears the New SABS (O. Reg. 34/10 – from Sept 1, 2010 to current) have been drafted to bring greater clarity to the methodology of calculating the IRB, based, in part, on conclusions in arbitration decisions at the Financial Services Commission of Ontario (FSCO).

The ordering of the component parts to calculate the IRB appears to be unambiguous and is performed in the following steps (for the first 104-weeks of disability if the individual was less than 65 at the date of entitlement):

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Barter and Payment in Kind – What happens when income is paid in goods and services?

When it comes to calculating income, it is not always as straightforward as how much salary an employee earns on their paycheque. Sometimes income also comes in the form of goods and/or services.

But what are you to do if an insured tells you they were provided with an apartment rent-free in exchange for working as a handyman in a building?

How do we translate those goods and services into income when determining Income Replacement Benefits (IRB)?


The most important thing to remember is that goods and services earned through Continue reading