Lost Wage Benefits
If you are out of work due to a work-related injury, one of your benefits will be compensation for lost wages. Generally speaking, workers compensation wage benefits are figured at 2/3 of your pre-injury gross average weekly wage. So, if you were making $500 per week before you got hurt, then, while you are out for your injury your “comp rate” (as it’s called) will 2/3 of $500, or $333.33 per week.
Remember, the comp rate is based on your gross wages, meaning your wages before taxes and other deductions.
Many will say, “How can I live on 2/3 of my salary?” Hopefully, this will only be a temporary situation — in fact the wage loss benefits that a person receives while completely out of work are called “temporary total disability,” or “TTD.” More important, however, is the fact that workers compensation benefits tax free. No taxes will be deducted from your workers compensation checks, nor will you have to pay any state or federal taxes on worker comp benefits you receive.
The above is a general summary of benefit calculations. There are a number of exceptions and additions that might apply to your case. If you are wondering whether you are receiving the correct amount of comp benefits, please contact me.