What Hurt Workers Need To Know About Their Disability Pay
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When a worker is hurt on the job and is eligible for workers' compensation insurance benefits, they may be paid a disability payment instead of a regular salary. To find out how these two differ, read on so that you will know what to expect.
Purpose of Payments
- Workers' Compensation: Workers' compensation payments are designed to provide financial assistance and support to employees who have suffered work-related injuries or illnesses. The primary goal is to cover medical expenses, lost wages, and rehabilitation costs resulting from a workplace injury or illness.
- Regular Salary: An employee's regular salary, on the other hand, is their standard compensation for the work they perform during regular working hours.
Eligibility
- Workers' Compensation: An employee typically needs to prove that their injury or illness is work-related. This means that the injury occurred during employment and is a direct result of job-related activities.
- Regular Salary: Employees receive their regular salary if they are actively working and fulfilling their job duties, regardless of any injuries or illnesses.
Coverage of Expenses
- Workers' Compensation: Workers' compensation benefits cover various expenses, including medical treatment (doctor visits, hospitalization, medication), disability payments (temporary or permanent), vocational rehabilitation, and potential death benefits to dependents in case of fatal workplace accidents.
- Regular Salary: An employee's regular salary does not typically cover medical expenses or disability payments resulting from a workplace injury or illness.
Amount of Payments
- Workers' Compensation: The amount of workers' compensation benefits an injured worker receives is often a percentage of their regular salary. It may vary based on the severity of the injury, state laws, and other factors.
- Regular Salary: An employee's regular salary is typically a fixed amount based on their hourly wage, monthly salary, or annual salary and is not directly influenced by any workplace injuries or illnesses.
Taxation
- Workers' Compensation: Workers' compensation benefits are usually not subject to income tax, meaning the injured worker receives the full amount without tax deductions.
- Regular Salary: An employee's regular salary is subject to income tax, and applicable deductions are withheld from each paycheck.
Duration of Payments
- Workers' Compensation: Workers' compensation benefits may be temporary (during the recovery period) or permanent (for long-term or permanent disabilities).
- Regular Salary: An employee's regular salary is paid for as long as they are actively working, absent from any specific provisions in an employment contract or collective bargaining agreement.
If you are experiencing issues with your disability pay or any other aspect of your workers' compensation claims, speak to a workers' compensation lawyer right away. For more information, contact a work site accident attorney near you.
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11 August 2023
