There aren't many types of insurance coverage available at no cost, but workers' compensation fits that description. Your employer foots the bill for this coverage, which pays some of your expenses when you get hurt on the job. Whether it's a sprained ankle or something more serious, the insurance will cover medical expenses and provide you with a weekly check. Read on to learn more about the pay you receive from workers' compensation insurance.
No Pay No Problem
Not everyone has enough sick leave or paid time-off available to help fill in when they are too hurt or sick to work. That is where workers' compensation comes in. While the money you get from this form of coverage is not meant to be a full replacement for your salary and it's only temporary, it can make a big difference.
Following Doctor's Orders
It's important to seek medical treatment after a work-related injury or illness. Your next step is to inform your supervisor about your medical situation so a claim can be filed with your employer's workers' compensation carrier. To be eligible for the weekly wage from workers' compensation, you must be ordered to stay home from work. Your doctor may order you to work only light-duty or to work only part-time. As long as the order comes from your doctor, your coverage will continue. At some point, your doctor will clear you to return to work at your usual pace and at your usual position.
What to Expect in Pay
The actual amount you can expect varies, but it is often about 60% of your usual rate of pay. The percentage is based on your gross pay and not your net pay. Additionally, there are no tax or other deductions taken from your workers' compensation wage compensation. The workers' compensation pay is not actually considered income, so it won't need to be reported on your income taxes when the tax year is over and you are ready to file. You are paid via a check, regardless of how you might have been receiving your regular pay.
Important Considerations about Workers' Compensation Pay
Many workers use the company healthcare insurance plan to provide health coverage for their spouses and children. You must make arrangements to continue paying the premiums since there is no regular salary to deduct them from. In fact, all regular deductions will cease during the time you are being paid workers' compensation pay. Consider making other arrangements for things like wage garnishments, savings plans, retirement plans, and more.
In most cases, workers' compensation insurance does a good job of helping you get back on your feet. If you are having problems with coverage, however, speak to a workers' compensation attorney, such as Spooner & Perkins P.C. Attorneys at Law.