Simple math calculation shows how much you should be getting from workers compensation for lost wages.
Getting hurt on-the-job can turn your life upside down. Many people are concerned about supporting their family if unable to work. This additional stress can actually slow recovery and make the situation worse.
Lost wages are available if you are disabled. Weekly payments are equal to 80% of your after-tax average weekly wage. This amount is subject to a state maximum of $805 per week for 2014. Benefits are income tax free.
Insurance companies frequently make mistakes and they are never in your favor. We recommend double checking the amount paid by the insurance company. You can do this by using a simple math calculation or by calling our office.
Average Weekly Wage Calculation
The first thing you must do is get a copy of your wage records. Ask your employer for a print-out. Some people already have this information if they kept pay stubs over the last year. Watch out for insurance companies who just want to use your hourly rate times 40 hours.
You want to look at the last 52 weeks before injury. Write down the highest paid 39 weeks on a blank piece of paper. Add these amounts together for a grand total. Now divide this total by 39. This gives you an average weekly wage.
Make sure overtime and premium pay is included in the highest 39 weeks. Sometimes discontinued fringe benefits can increase the total amount. Wages from a second job can also be included if you are unable to perform that work. Insurance companies typically ignore these factors.
Now use tables published by the State of Michigan to calculate the weekly comp rate. You will need to know your tax filing status and number of dependents.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.
Photo courtesy of Creative Commons, by 401(K) 2013.Tags: Average Weekly Wage, Lost Wages, Michigan workers compensation lawyers