The size of a disabled employee’s benefit payments gets determined by the monthly salary of that same employee. The amount paid to the disabled worker each month equals a given percent of that monthly salary.
What percent of the disabled worker’s salary gets used for calculation of the size for the monthly benefit payment?
The disability plan chosen by the eligible worker designates the percent of the insured employee’s salary that will get used in determination of the payment’s size. Each plan has another unique provision, one that relates to the maximum size for any benefit. No benefit can exceed that maximum amount.
How does that rule get applied if the disabled employee made more than the plan’s maximum, before seeking disability benefits? In that case, the size of the payment delivered each month to that particular former-employee would be limited to the size of a maximum payment.
Another factor that determines how much money a disabled worker gets each month.
The size of both the premiums and the benefits varies, according to when and how the benefit payment gets taxed. Normally, that payment gets treated as post-tax income. That means the appropriate amount of tax money gets taken from the payment, before it gets delivered to the employee that has qualified for disability payments. Most workers that apply for disability benefits are encouraged to go-along with the general practice, that of removing the tax money before the benefit payment gets sent to the waiting employee.
Why are the recipients of each benefit payment not encouraged to request a pre-tax treatment for each delivered benefit? The Injury Lawyer in Burlington knows that the benefit’s size is greater before the taxes get removed. That is true, but the recipient must set-aside a given amount of money, which will get sent to the government as tax on the received income. Recipients have more control over how each benefit gets spent, when each of the monthly payments get treated as post-tax income.
An added reason that residents of Ontario have for agreeing to the established practice of accepting a post-tax payment:
Residents of Ontario have more than one source of added funds, in the event that there appears to be a need to add to the medical supplies for a specific disabled worker. That same worker could apply to the Ontario Disability Support Program. That program can support disabled workers, because it receives government funds. Those funds get collected from tax dollars.
In other words, the government tax money creates a money supply that can serve as an emergency fund. Disabled workers can apply to the Ontario Disability Support Program for access to those same funds, if any one of them finds it necessary to obtain additional supplies or equipment.
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