The benefits that you receive from a workers’ compensation program are not considered income. However, there are situations where you may need to pay taxes even though workers’ compensation benefits are not considered income.
If you receive benefits from any other program, it can affect your benefits from the workers’ compensation program. There is a cap on the amount of wage replacement that you can receive. If you exceed it, you may be required to pay taxes on a portion of your benefits. This is also true of any wages that you earn if you go back to work. There are other situations where you may be required to pay taxes. Discuss your situation with a lawyer to see what your tax obligations are.
Defining Workers’ Compensation
Workers’ compensation is a type of benefits program designed to help workers who are injured on the job. Employers pay for the program, and employees are not required to pay into the program. The program is made available for workers that are injured and cannot return to work or can return to work in a limited capacity. These workers can still receive a portion of their wages so that they can continue to earn a living.
Types of Workers’ Compensation Benefits
There are generally several types of workers’ compensation benefits that you can receive. The benefit that most injured workers are worried about is wage replacement. You can receive up to 80% of your average wages before you were injured. While it won’t fully replace your wages, it may be enough to avoid financial problems or to maintain a quality of life. This is affected by other types of compensation that you can receive from other programs.
Another type of compensation that you can receive is for medical treatment costs. The program can pay for treatments that you need because of your injury. This can include various forms of rehab, such as physical therapy and vocational therapy. In severe cases, benefits can also apply to the survivors of the deceased.
Filing a Claim
It is important to start the claim process as soon as possible. A time limit exists for how long you have to file your claim, which is regulated by each state. After you receive medical treatment, report your injury to your employer. The HR department or another designated staff member should have access to any paperwork that you need to file, especially if your employer has a workers’ compensation insurance plan.
Once the injury is reported and you filed your claim, it will be reviewed by the oversight agency. If it is denied, you can file an appeal. If approved, the insurance company may offer a settlement agreement. You can negotiate the terms as you see fit.
Understanding Your Rights
You have the right to file a claim for workers’ compensation benefits if you are injured due to an employer’s negligence. The process of filing a claim should be relatively easy. If an organization is making it difficult to file, then you can take legal action or report it directly to the oversight agency instead. You also have the right to appeal any denied claims. If this happens, your case will be reviewed by a judge just like any other civil lawsuit.
If you feel that the process is unnecessarily difficult, your rights are being violated, or you need legal guidance, don’t hesitate to ask a lawyer for help. There are notable instances of companies making it difficult for employees to claim the benefits that they deserve. Government institutions are in place to oversee the process and address problems. Take action to protect yourself and your interests so that you can have a better recovery.
Seeking Legal Advice
Understanding the details of benefits programs can be complicated, especially if you are enrolled in several programs at the same time. Fortunately, there are lawyers that can help you navigate these programs. Contact a lawyer if you have questions regarding the filing process for a benefits program or you need legal assistance in resolving an issue. Some problems may require legal action to resolve, and having a lawyer that can help could make it easier.
Speak to a Lawyer About Your Case
There are no situations where workers’ compensation is considered income, but you may have to pay taxes while receiving benefits in some situations. If you need help understanding how your benefits will be affected, speak to a lawyer that can guide you through the filing process and teach you about the benefits program. Call the offices of Ben Crump Law, PLLC at (800) 603-4224 for a free consultation about your case.