Are Workers’ Compensation Benefits Taxable?

So you’ve been hurt on the job or you’ve developed an illness or disease because of exposure to hazardous or dangerous substances. Maybe it’s just caught up to you after a while—performing the same task over and over has led to carpal tunnel or some other form of repetitive stress injury. You notify employer, a claim is filed and approved and you start receiving benefits. If you look closely at your payments, you’ll notice that there are no taxes taken out. Does this mean you’ll have to pay them yourself? How are workers’ compensation benefits treated for tax purposes?

In New Jersey workers’ compensation benefits are not considered taxable income by either the state of New Jersey or the federal government, as long as they are paid through or in accordance with New Jersey’s workers’ compensation laws. Survivor benefits paid to loved ones after a death in the workplace or from an occupational disease are also exempt from taxation. The exemption, however, does not apply to any payments from company sponsored retirement plans, even if the retirement was in part a consequence of a work-related injury or illness.

There may also be limited circumstances where workers’ compensation benefits are taxable, if the beneficiary is simultaneously receiving Social Security disability benefits. For example, if you are receiving Social Security disability benefits and you file for and receive workers’ compensation benefits, the total amount you receive cannot exceed 80% of your “average current earnings ” before you were disabled. To the extent that it does, you may be required to offset, or reduce, the amount of SSD benefits you receive.

Contact Us

At Taylor & Boguski, we bring more than 70 years of combined legal experience to people throughout New Jersey. For a free initial consultation, contact our office online or call us at 856-200-8989.

We represent clients in workers’ compensation proceedings on a contingent fee basis. We won’t charge you attorney fees unless we recover compensation for your losses.

What to Do When Your Employer Won’t Submit Your Workers’ Compensation Claim

You’ve been hurt on the job and you’ve notified your employer as soon as possible. But your employer is just sitting on it, refusing or simply failing to pass your claim on to the workers’ compensation insurance carrier. You need the benefits, as you can’t work. What are your options?

Obviously, one of the most beneficial things you can do is hire an experienced and aggressive workers’ compensation attorney. But there are things you can do before or after you’ve retained counsel:

• Contact the workers’ compensation insurance company directly—Put together all medical records, get statements from witnesses, make copies and send everything to the workers’ compensation insurance company. Notify them of the date of the accident and the date you notified your employer. Follow up with a phone call and keep calling until someone takes action.
• Contact the state of New Jersey Division of Workers’ Compensation—If you don’t want to have to deal with your employer or the workers’ compensation insurance company, you can contact the state workers’ compensation office directly. You’ll need proof that your company had workers’ compensation insurance—this proof is required to be posted in a prominent place at your workplace. If you can’t find that, contact the Compensation Rating and Inspection Bureau. Bureau officials will be able to tell you if your employer complied with the law (requiring workers’ compensation insurance), as well as what company is providing the workers’ compensation coverage.

Contact Taylor & Boguski

At Taylor & Boguski, we have more than 70 years of combined experience representing injured workers across New Jersey. For a free initial consultation, send us an e-mail or call us at 856-200-8989.

We handle all workers’ compensation claims on a contingency basis. You won’t pay any legal fees unless we get compensation for your losses.

What Benefits Can You Expect When You File a Workers’ Compensation Claim?

If you’ve been hurt on the job, but you’ve never filed a workers’ compensation claim before, you may be uncertain what benefits to expect. Maybe you’ve heard that you’re entitled to payments for lost wages or medical expenses, or even a lump sum when you have a permanent injury. This blog provides an overview of the benefits available in New Jersey when you submit a workers’ compensation claim.

The Basic Benefits

New Jersey law requires that your employer pay for all “reasonable and necessary medical care” when you have been hurt on the job. New Jersey is not what is known as a “wage loss state,” though, so technically, New Jersey workers’ compensation benefits do not include a provision for lost income. Instead, New Jersey mandates that employers compensate workers for any temporary disability, In essence an income replacement. Furthermore, if your injuries are permanent, even if they don’t keep you from working, you may be entitled to permanent disability compensation.

How Are Disability Payments Calculated?

For a temporary disability—where you were off work at least seven days, but are expected to or have returned to work—your temporary disability payments are calculated by taking 70% of your average weekly wage (AWW)—the average you earned over the last 52 calendar weeks. You may also be subject to maximum and minimum rates weekly benefits. To continue receiving any disability payments, you must remain under medical care. In addition, you can only receive temporary disability payments until you go back to work or until you have reached maximum medical improvement (MMI).

If, on the other hand, your disability is considered permanent, it will be identified as either permanent partial disability or permanent total disability. If you have sustained a permanent partial disability, you will be able to return to work, but will also be eligible for payments based on your percentage of disability. If your disability is permanent and total, meaning you can’t return to work, you will be entitled to 70% of your AWW for up to 450 weeks.

Contact Us

At Taylor & Boguski, we bring more than 70 years of combined legal experience to injured workers throughout New Jersey. For a free initial consultation, contact our office online or call us at 856-200-8989.

We handle all workers’ compensation claims on a contingency basis. We won’t charge you attorney fees if we don’t recover compensation for your losses.

When Can You Expect to Start to Collect Workers’ Compensation Benefits?

One of the benefits that the workers’ compensation laws are supposed to provide workers is more timely access to benefits, as you don’t have to go through all the procedures tied to a personal injury lawsuit. But what does that mean—when can you actually expect to start collecting benefits?

The Waiting Period to Collect

You can’t actually file a claim for workers’ compensation benefits until your injury has kept you out of work for at least one calendar week. Once you do file, though, you will receive payments retroactive to the date of your injury (if your application is approved). The waiting period, though, only applies to compensation for lost wages—you don’t have to wait to seek medical treatment.

When Will Payments Actually Start?

In the best of all possible worlds, you won’t likely receive your first payment for at least two weeks, as the workers’ compensation insurance company needs time required to process, evaluate and approve your claim. If your claim is challenged, you won’t see any payments until the dispute is resolved. Nonetheless, your employer and the workers’ compensation insurance company cannot intentionally delay your claim. Under the New Jersey workers’ compensation law, a delay of more than 30 days may be considered unreasonable (provided there are no legitimate challenges to your claim) and the insurance provider and/or your employer can be fined an additional 25% penalty for wrongful delay.

Contact Us

At Taylor & Boguski, we bring more than 70 years of combined legal experience to men and women throughout New Jersey. For a free initial consultation, contact our office online or call us at 856-200-8989.

We handle all workers’ compensation claims on a contingency basis. There will be no attorney fees unless we recover damages for your losses.