Recent changes to Ontario Works and you
The New
Example: Single parent
$200
Priya is a single parent with a four year old child. She has been receiving Ontario Works for six months, and she
works part time. Priya earns $615 per month at her job, less $30 in payroll deductions for a net employment income of
$585. She has $240 in child care expenses. She is eligible for $940 per month from Ontario Works. Since she has been
receiving Ontario Works for more than three months, she is eligible for the new $200 Earnings Exemption.
Earnings
Exemption
STEP
1
STEP
EARNINGS
EXEMPTION
2
STEP
CHILD CARE
EXPENSES
3
CALCULATE ONTARIO WORKS PAYMENT
Priya’s caseworker subtracts her net chargeable income from the Ontario Works
amount she is eligible for. This will determine her Ontario Works payment.
With the changes to Ontario Works, Priya
will see no reduction to her Ontario Works
payment for the first $200 she earns. After
that, every dollar she earns reduces her
Ontario Works payment by 50 cents.
Priya’s caseworker deducts her allowable
child care costs – up to $600. This
determines her net chargeable income –
that is, the amount that would reduce
her Ontario Works payment.
Priya’s net employment income . . . . . . . . . $585
Subtract $200 Earnings Exemption . . . . . -$200
Priya’s chargeable income
before deductions . . . . . . . . . . . . . . $192.50
Priya’s eligible Ontario Works amount . . . . . $940
Priya’s chargeable income . . . . . . . . . . . . . . . -$0
Employment income after $200
Earnings Exemption . . . . . . . . . . . . . . . . .= $385
Priya’s child care costs . . . . . . . . . . . -$240
Priya’s Ontario Works payment . . . . . . = $940
Priya’s net chargeable income . . . . . . . = $0
Exempt 50% of remaining income . . .= $192.50
Priya’s chargeable income
before deductions . . . . . . . . . . . . . . . = $192.50
Ontario is strengthening support by removing barriers and
increasing opportunities for people on social assistance to work.
Priya benefits from the new
Earnings Exemption. She has
$585 in income from her job
and $940 from Ontario Works.
That’s a total of $1,525
each month.
Find out how these changes can benefit you:
www.ontario.ca/socialassistance
Recent changes to Ontario Works and you
The New
$200
Earnings
Exemption
Example: Single person
Robert is a single person with no children and has been receiving Ontario Works for one year. He earns $150 per month, less
$10 in payroll deductions for a net employment income of $140. He is eligible for $626 per month from Ontario Works. Since
Robert has been receiving Ontario Works for more than three months, he is eligible for the new $200 Earnings Exemption.
STEP
1
STEP
EARNINGS EXEMPTION
With the new changes, Robert will see no reduction to his Ontario
Works payment for the first $200 he earns. Since Robert’s net
income is $140 per month, all of his earnings are exempt.
Robert’s net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140
Subtract $200 Earnings Exemption . . . . . . . . . . . . . . . -$200
2
CALCULATE ONTARIO WORKS PAYMENT
Robert’s caseworker subtracts his chargeable income – that is,
the amount that would reduce his Ontario Works payment from
the Ontario Works amount he is eligible for. This will determine his
Ontario Works payment.
Robert’s eligible Ontario Works amount . . . . . . . . . . . . .$626
Robert’s chargeable income . . . . . . . . . . . . . . . . . . . . . . -$0
Robert’s Ontario Works payment . . . . . . . . . . . . . = $626
Employment income after $200 Earnings Exemption . . . . = $0
Exempt 50% of remaining income. . . . . . . . . . . . . . . . . . = $0
Robert’s chargeable income . . . . . . . . . . . . . . . . . . . . . . . . = $0
Ontario is strengthening support by removing barriers and
increasing opportunities for people on social assistance to work.
Robert benefits from the
new Earnings Exemption.
He earns $140 a month
from employment and
receives $626 from
Ontario Works.
That’s a total of $766
each month.
Find out how these changes can benefit you:
www.ontario.ca/socialassistance
Recent changes to Ontario Works and you
The New
Example: Family
Earnings
Rosa and John have two children, aged 12 and 17, and have been receiving Ontario Works for four months. Rosa
earns $600 per month from her job, less $50 in payroll deductions, and John earns $300, less $10 in payroll
deductions from his part-time job. Their total family net employment income is $840. They have no child care
expenses. Their family is eligible for $1,160 from Ontario Works each month. Since they have both been receiving
Ontario Works for more than three months, they are eligible for the new $200 Earnings Exemption.
$200
Exemption
STEP
STEP
1
EARNINGS EXEMPTION
With the new changes, Rosa and John will see no reduction to their Ontario Works
payments for the first $200 they each earn. After that, every dollar they earn will
reduce their Ontario Works payment by 50 cents.
-$200
Employment Income after
$200 Earnings Exemption . . . . . . . . . . . . . .
$350
Exempt 50% of remaining income . . . . . . .
$175
Rosa and John’s chargeable income . . . . . . .
$175
John
$290
-$200
$90
$45
$45
..........................
Subtract New $200 Earnings Exemption . .
..........................
Rosa and John’s net income . . . . . . . . . . . .
Rosa
$550
2
CALCULATE ONTARIO WORKS PAYMENT
Rosa and John’s caseworker subtracts their chargeable income – that is, the amount that
would reduce their Ontario Works payment from the Ontario Works amount they are
eligible for. This will determine their Ontario Works payment.
Family Total
$840
Rosa and John’s eligible Ontario Works amount . . . $1,160
Their chargeable income . . . . . . . . . . . . . . . . . . . . . . -$220
-$400
Rosa and John’s Ontario Works payment . . . . . . = $940
= $440
= $220
= $220
Ontario is strengthening support by removing barriers and
increasing opportunities for people on social assistance to work.
Rosa and John benefit from
the new Earnings Exemption.
They have $840 in income
from their jobs plus $940
from Ontario Works.
That’s a total of $1,780
each month.
Find out how these changes can benefit you:
www.ontario.ca/socialassistance
Recent changes to Ontario Works and you
The New
Earnings
Exemption
for Self
Example: Single business owner
Chen is a single person with no children and has been receiving Ontario Works for seven months. He earns
$700 per month from his graphic design business. He spends about $300 per month on business-related expenses,
such as advertising, bookkeeping and supplies. He is eligible for $626 per month from Ontario Works, and since
he has been receiving Ontario Works for more than three months, he is eligible for the new $200 Earnings Exemption.
Employment
STEP
1
STEP
BUSINESS
INCOME
Chen can deduct expenses that are
necessary to operate his business from
his monthly income so that they don’t
affect his Ontario Works payment.
2
STEP
EARNINGS
EXEMPTION
With the new changes, Chen will see no reduction
to his Ontario Works payment for the first $200 he
earns. After that, every dollar he earns reduces his
Ontario Works payment by 50 cents.
3
CALCULATE ONTARIO WORKS PAYMENT
Chen’s caseworker subtracts his chargeable income – that is, the amount that would
reduce his Ontario Works payment from the Ontario Works amount he is eligible for.
This will determine his Ontario Works payment.
Chen’s business income . . . . . . . . .$700
Chen’s business expenses . . . . . . . -$300
Chen’s net business income . . . . . . . . . $400
Subtract $200 Earnings Exemption . . . -$200
Chen’s eligible Ontario Works amount . . . . $626
Chen’s chargeable income . . . . . . . . . . . -$100
Chen’s net business income . . . . . = $400
Employment income after
$200 Earnings Exemption . . . . . . . . . = $200
Chen’s Ontario Works payment . . . . = $526
Exempt 50% of remaining income . . . = $100
Chen’s chargeable income . . . . . . . . . = $100
Ontario is strengthening support by removing barriers and
increasing opportunities for people on social assistance to work.
Chen is able to operate his business
and benefit from the new Earnings
Exemption. He earns $400 from his
business, plus $526 from Ontario Works.
That’s a total of $926
on average each month.
Find out how these changes can benefit you:
www.ontario.ca/socialassistance