If you are the victim of a work-related injury, you are probably entitled to workers' compensation insurance. This insurance not only takes care of your accident-related medical expenses, but it also pays hurt workers who cannot work due to their injuries a disability wage. This payment is probably unlike anything you've encountered in the past, so read on to learn more facts about this much-needed form of support.
Unique Properties of Disability Wages
Read below to learn some facts about disability wages that set this form of wages apart from your regular pay:
1. One of the main facts you should know about disability wages is that they are not considered income – the money you receive is instead considered an insurance benefit.
2. Since disability wages are not considered income, they are not taxed – at all. You will receive the full amount you are entitled to receive with absolutely no deductions for federal or state taxes or any of the other usual deductions. This also means that the money you receive for disability wages does not have to be included on your income taxes.
3. Disability wages are always paid weekly, regardless of how you have been receiving your pay up to now. The length of time you are entitled to receive disability wages for depends on your injury and your workers' compensation doctor. You will be monitored for healing, and your doctors will release you to return to work when you are judged able. The disability wages will cease, and you will return to your normal pay plan. Unfortunately, you may be ordered to return to work before you are ready. If your injuries are not fully healed, you may need to speak to a workers' compensation lawyer for help with your claim.
4. Disability wages are not the same amount as your regular salary. Depending on the workers' compensation rules in your state, the money you end up getting is often a percentage of your usual pay. In some cases, workers' compensation disability wages are about 66% of your regular pay. As you might expect, having to pay your bills with a reduced amount of money coming in can create a stressful financial situation. Speak to a workers' compensation lawyer about obtaining a lump sum settlement with the insurance company to help ease your financial woes.
5. Since the funds you receive are not considered income, your usual deductions for benefits may not continue. Speak to your human resources department about how to cover health insurance premiums and retirement contributions while you are using workers' compensation.
Speak to a workers' compensation attorney from a firm like Spooner & Perkins P.C. Attorneys at Law for more information about any of the above.
Share23 May 2019
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