Daily Reserve rate x 7 (taxable)

Daily Reserve rate x 7 (taxable)

This method deems NWE as 7 x the Reservist client's daily rate of Reserve pay (eg. 7 x $60 = $420, where the daily rate is $60).

Generally it is used in two situations:

• where the Reservist client has no civilian earnings;
• where the Reservist client has civilian earnings from part-time employment, but these are so low that NWE would be less than 7 x Reserve rate.

If this deemed rate is used, the weekly salary from civilian employment must be entered as NIL to avoid an over-estimation of NWE.

NOTE: where NWE is deemed using the “daily Reserve rate x 7”, all of the weekly compensation payment is taxable.