2017 Calculation Program Released

Workers’ Compensation Agency (WCA) updates its benefit calculator for 2017 and how to verify your weekly comp rate.

2017calcprogramWage loss benefits are calculated based upon a specific formula outlined in Michigan law. A disabled employee should receive 80% of his or her after-tax average weekly wage. This is usually about 60% of total gross pay subject to a state-wide maximum of $870.00 per week.

Insurance companies often make mistakes when calculating weekly comp benefits. This happens when wage records are not obtained from the employer and estimates are simply used. Sometimes the employer itself fails to provide the appropriate data.

Average weekly wage is based upon the highest 39 paid weeks during the 52 weeks before injury. Overtime, premium pay, bonuses, discontinued fringe benefits, and second jobs should be included. If a person has been employed less than 39 weeks, it is based upon total weeks worked.

Doubling checking insurance company math is easy when you have the right tools. Tables published by the State of Michigan show your weekly comp rate. Tax status and number of dependents must be known.

The WCA also updates its official benefit calculator every year. We have posted a screenshot showing how to do the weekly comp rate calculation. Download the calculation program and check the math for yourself.

A quick warning about partial disability. Insurance companies are now using residual “wage earning capacity” to automatically reduce weekly benefits. This is based upon jobs that are available in the general economy but are not actually offered. People are finding themselves without a job or any income. We recommend contacting an experienced workers’ compensation lawyer if this happens to you.

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.

Related information:

Why your “wage earning capacity” matters under Michigan workers’ compensation

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