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Diminished Earnings Capacity (DEC)

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Post by czerv on Sat 25 Aug 2018, 11:22

These are very legit questions, anyone having a charter accountant dealing with taxes as a friend?

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Post by bigrex on Sat 25 Aug 2018, 11:19

It would either be the ELB zeroing out your EI benefits, or the EI benefits being deducted from your ELB. no accountant can change that


Last edited by bigrex on Sat 25 Aug 2018, 12:36; edited 1 time in total
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Post by Guest on Sat 25 Aug 2018, 09:15

Bruce72 wrote:See, I think the EI and VAC system don't communicate. It's when you file your taxes that the CRA will catch it.
there is nothing really to catch,EI asks you every 2 weeks if you brought home any income, so you file saying yes,$3000 from ELB,so no extra money will come in at the end of the year

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Post by Guest on Fri 24 Aug 2018, 21:12

See, I think the EI and VAC system don't communicate. It's when you file your taxes that the CRA will catch it.

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Post by Guest on Fri 24 Aug 2018, 17:42

Bruce72 wrote:I'm just saying cover your ass. You don't want to end up in a position where you have to make a repayment. ELB is income. EI requires reporting of income.
you see it creates a weird scenario because by reporting ELB to EI, EI would look at the amount of ELB a vet receives in a month and as a result, the vet would then take home $0 from El , therefore if you take home $0 from EI, there is no deduction from ELB. I'm saying the same as you,I.e. cover your ass, at least if you apply for EI and get accepted, even if it results in no take home pay, it should result in a quicker payout should VAC remove your ELB in the first year. Otherwise a vet could end up applying for ELB only, suddenly lose it, and then have to wait who knows 4,6,8 weeks to get a cheque from EI as his new and only source of income.

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Post by Guest on Fri 24 Aug 2018, 15:17

I'm just saying cover your ass. You don't want to end up in a position where you have to make a repayment. ELB is income. EI requires reporting of income.

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Post by Guest on Fri 24 Aug 2018, 13:05

Bruce72 wrote:
Artie Simm wrote:
Nemo wrote:You are right Bigrex. EI has limits as to when you can apply for it. And EI for medical reasons is very limited.  IF I understand what they have written on their site, if you have not worked and paid into EI in the last 52 weeks you get nothing whether healthy or sick. And if on sickness benefits for EI that lasts a max of 15 weeks.
well here is a question then, suppose a vet is approved ELB and EI having just lost their job. VAC wants to deduct EI from ELB ( let's just say $4000 a month now minus $1000 = $3000 a month take home)...but doesnt EI also want to subtract any other earned income from what they give you? If that's the case ,there would be no point in even applying for EI as ELB is the greater or the two and would reduce your EI entitlement to $0 ,would it not?

I believe you can't collect both benefits at the same time. It might be double-dipping.
l wouldn't call it double dipping, if you held down a job for 2 years then lost it, you're entitled to EI. The ELB is supposed to be there to help you rebound, so it will deduct the EI payment.to me it makes sense to apply for both and receive EI and let VAC make the correction because VAC also has the ability to shut down a vets ELB, at least if that happens in first 12 months ,a vet would still have his EI to survive on for a few months

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Post by Guest on Fri 24 Aug 2018, 12:24

Artie Simm wrote:
Nemo wrote:You are right Bigrex. EI has limits as to when you can apply for it. And EI for medical reasons is very limited.  IF I understand what they have written on their site, if you have not worked and paid into EI in the last 52 weeks you get nothing whether healthy or sick. And if on sickness benefits for EI that lasts a max of 15 weeks.
well here is a question then, suppose a vet is approved ELB and EI having just lost their job. VAC wants to deduct EI from ELB ( let's just say $4000 a month now minus $1000 = $3000 a month take home)...but doesnt EI also want to subtract any other earned income from what they give you? If that's the case ,there would be no point in even applying for EI as ELB is the greater or the two and would reduce your EI entitlement to $0 ,would it not?

I believe you can't collect both benefits at the same time. It might be double-dipping.

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Post by Guest on Fri 24 Aug 2018, 09:05

Nemo wrote:You are right Bigrex. EI has limits as to when you can apply for it. And EI for medical reasons is very limited.  IF I understand what they have written on their site, if you have not worked and paid into EI in the last 52 weeks you get nothing whether healthy or sick. And if on sickness benefits for EI that lasts a max of 15 weeks.
well here is a question then, suppose a vet is approved ELB and EI having just lost their job. VAC wants to deduct EI from ELB ( let's just say $4000 a month now minus $1000 = $3000 a month take home)...but doesnt EI also want to subtract any other earned income from what they give you? If that's the case ,there would be no point in even applying for EI as ELB is the greater or the two and would reduce your EI entitlement to $0 ,would it not?

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Post by Nemo on Sun 19 Aug 2018, 18:49

is the $3000 or so from the VIP yard maintenance also deducted from the yearly amount of ELB?

NO.
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Post by Guest on Sun 19 Aug 2018, 14:46

bigrex wrote:All deductions from ELB, are made from the 90% amount, not your actual payment. So from the initial $9000, VAC would deduct the new SISIP amount of $6500, and the CPP of $1000, and still leave an ELB payment of $1500.
is the $3000 or so from the VIP yard maintenance also deducted from the yearly amount of ELB?

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Post by bigrex on Sun 19 Aug 2018, 08:37

Yes, SISIP is a private LTD insurance plan for the military, administered by Manulife, it was originally intended for those who were being medically released for non service related injuries or illness, and would not qualify for a PA pension from VAC. It was later extended to all medically released members, because until the late 90's, you couldn't apply for VAC benefits, until you were released, or being released. But if it took months or years, to go through the system ay VAC, it was causing Veterans financial hardships while they were waiting, with no other source of income. ELB was modelled after it, when it was first introduced in 2006, but has since been improved..
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Post by Nemo on Sat 18 Aug 2018, 16:54

It is not a pension thru SISIP - it is an earnings loss payment. SISIP does not distinguish between military or non military duty/sickness. It covers for both.
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Post by Guest on Sat 18 Aug 2018, 16:28

bigrex wrote:SISIP is the first payer, So if your ELB 90% amount is $4800, your 75% from SISIP amount would be $4000. Now if you get CPP, of  $1000/mo, even though they are technically supposed to be deducted by both, it should look like this

SISIP $4000
- CPP $1000
= SISIP $3000.

ELB  $4800
- CPP $1000
-SISIP $3000
= ELB $800

So if you are on ELB, the total amount of all your income cannot equal less than the 90% amount, regardless of deductions.

Edit. That is why, if you get back pay, always let SISIP know first. So when you contact VAC, you can let them know what the previous deductions made for SISIP were supposed to be, so that they don't both deduct that money at the same time.
sorry,if l dont understand all this but how does someone end up with a pension through SISIP anyway? If you're injured and released before 2006 isn't it just a monthly VAC pension and after 2006 a disability award,how does SISIP enter the picture?

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Post by bigrex on Sat 18 Aug 2018, 15:49

All deductions from ELB, are made from the 90% amount, not your actual payment. So from the initial $9000, VAC would deduct the new SISIP amount of $6500, and the CPP of $1000, and still leave an ELB payment of $1500.
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