How to Calculate Workers Compensation
Report a legitimate work-related injury to you supervisor., Provide a medical diagnosis from your doctor., Meet the minimum waiting period requirement., Find out the percentage of pay due in your state., Check what the maximum benefit is., Calculate...
Step-by-Step Guide
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Step 1: Report a legitimate work-related injury to you supervisor.
Your supervisor will then report it to your Human Resources or Safety Department, who will then pass it on to their Worker's Compensation Insurance carrier.
Discuss it with your immediate supervisor first so that all members of your place of employment are involved and aware of the situation.
It is best not to go over someone's head, even for what seems like an emergency.
Your workplace may have a particular procedure that you are required to follow. -
Step 2: Provide a medical diagnosis from your doctor.
Your physician must show the reason the injury prevents you from continuing to work in the manner you previously had.
In order to receive full compensation, most states will require that you are unable to work at all.
Some states have partial compensation packages if your capacities are reduced or impaired instead.
Many insurance carriers will have specific lists of doctors approved to diagnose workplace injuries.
In an emergency this is not a concern, but once a decision has been made to pursue compensation make an appointment with a doctor who can file the report. , This means your doctor will have to report you as unable to work for that specific number of days before the WC insurance carrier will consider the claim.
This will generally be three to seven days depending on the state.
Before that, time off will just be covered by sick leave.
For example, in Minnesota and California, the waiting period is three days.This does not mean you are expected to work immediately after the accident! It is just the technical issue of whether you are being paid by your employer or the Worker's Compensation Insurance Carrier.
In North Carolina and New York, the waiting period is seven days.Before the first week, your pay is an internal issue. , In different states, the compensation will range, although the general expectation is a majority percentage of the wages (with an upper limit.) It is commonly about
66.67% but can be equal to the worker's full salary.
However, the higher percentage states may have a lower "upper limit" so be sure to check the full details.
For instance, in Maryland Total Temporary Disability is
66.67%.This means after an accident, disability insurance will cover two-thirds of your wages while you recover.
In Texas, Temporary Disability is 100% of wages.This means that in Texas, your full salary is covered by disability insurance during your recovery period. , This is important since the percentage only matters to a point.
Once a salary reaches a certain amount, generally the state average wage, the percentage will no longer make any difference.
Instead, the employee will just pay the upper limit, even if it is a lower percentage of the employee's wage.
In Maryland, the maximum weekly benefit in 2015 is $1005.This is the average weekly wage of the state and about 66% of a $1305 salary.
Any salary over $1305 will still receive $1005.
If two-thirds of your salary is higher than $1005 it is irrelevant to disability benefits.
In Texas, the maximum weekly benefit in 2015 is $861.This is the average state weekly wage, and 100% of the maximum benefit.
That means if you make more than $861 per week, it is not part of the calculation.
No one receives more than $861 per week. , This is the three to seven days after the injury and when you initially notified your supervisor.
It is before any official claim is processed since there is a requirement in each state for that time.
Especially if your injury only takes you off work for a short period of time, it is important to make sure you are compensated for the waiting period.
If WC does not cover the waiting period it might get taken out of your sick leave or vacation package! Check with your employer about how your place of employment runs things, and make sure you are following the protocol. -
Step 3: Meet the minimum waiting period requirement.
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Step 4: Find out the percentage of pay due in your state.
-
Step 5: Check what the maximum benefit is.
-
Step 6: Calculate retroactively to cover the waiting period.
Detailed Guide
Your supervisor will then report it to your Human Resources or Safety Department, who will then pass it on to their Worker's Compensation Insurance carrier.
Discuss it with your immediate supervisor first so that all members of your place of employment are involved and aware of the situation.
It is best not to go over someone's head, even for what seems like an emergency.
Your workplace may have a particular procedure that you are required to follow.
Your physician must show the reason the injury prevents you from continuing to work in the manner you previously had.
In order to receive full compensation, most states will require that you are unable to work at all.
Some states have partial compensation packages if your capacities are reduced or impaired instead.
Many insurance carriers will have specific lists of doctors approved to diagnose workplace injuries.
In an emergency this is not a concern, but once a decision has been made to pursue compensation make an appointment with a doctor who can file the report. , This means your doctor will have to report you as unable to work for that specific number of days before the WC insurance carrier will consider the claim.
This will generally be three to seven days depending on the state.
Before that, time off will just be covered by sick leave.
For example, in Minnesota and California, the waiting period is three days.This does not mean you are expected to work immediately after the accident! It is just the technical issue of whether you are being paid by your employer or the Worker's Compensation Insurance Carrier.
In North Carolina and New York, the waiting period is seven days.Before the first week, your pay is an internal issue. , In different states, the compensation will range, although the general expectation is a majority percentage of the wages (with an upper limit.) It is commonly about
66.67% but can be equal to the worker's full salary.
However, the higher percentage states may have a lower "upper limit" so be sure to check the full details.
For instance, in Maryland Total Temporary Disability is
66.67%.This means after an accident, disability insurance will cover two-thirds of your wages while you recover.
In Texas, Temporary Disability is 100% of wages.This means that in Texas, your full salary is covered by disability insurance during your recovery period. , This is important since the percentage only matters to a point.
Once a salary reaches a certain amount, generally the state average wage, the percentage will no longer make any difference.
Instead, the employee will just pay the upper limit, even if it is a lower percentage of the employee's wage.
In Maryland, the maximum weekly benefit in 2015 is $1005.This is the average weekly wage of the state and about 66% of a $1305 salary.
Any salary over $1305 will still receive $1005.
If two-thirds of your salary is higher than $1005 it is irrelevant to disability benefits.
In Texas, the maximum weekly benefit in 2015 is $861.This is the average state weekly wage, and 100% of the maximum benefit.
That means if you make more than $861 per week, it is not part of the calculation.
No one receives more than $861 per week. , This is the three to seven days after the injury and when you initially notified your supervisor.
It is before any official claim is processed since there is a requirement in each state for that time.
Especially if your injury only takes you off work for a short period of time, it is important to make sure you are compensated for the waiting period.
If WC does not cover the waiting period it might get taken out of your sick leave or vacation package! Check with your employer about how your place of employment runs things, and make sure you are following the protocol.
About the Author
Diana Murray
Specializes in breaking down complex hobbies topics into simple steps.
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