Michigan attorney explains how workers’ comp is calculated in Michigan by finding your average weekly pay and using the rates published by the state of Michigan
Employees who are hurt on-the-job are protected under workers’ comp law. It pays wage loss benefits to individuals who are disabled because they cannot find a job within restrictions. In Michigan, workers’ comp is calculated by finding a person’s average weekly wage, their tax filing status, and number of dependents they have. Our experience shows that insurance companies frequently make errors, and it is a good idea to double check their math.
Doublechecking insurance company math is easy when you have the knowledge. Use the information below to determine the average weekly wage and corresponding comp rate. It should add up to roughly 60% of gross pay. Checks should be mailed weekly and are income tax free. Do not let the insurance company pay less than is required under workers’ comp law based upon an error.
About wage loss benefits
Employees hurt at work are entitled wage loss benefits. The amount paid should equal 80% of their after-tax average weekly wage, subject to a state-wide maximum. This includes money for overtime, discontinued fringe benefits, and second jobs. A good rule of thumb is 60% of gross income should be paid.
How is workers’ comp calculated in Michigan?
In Michigan, workers’ comp is calculated based on the highest 39 paid weeks out of the total 52 weeks before getting hurt on the job. Add up the highest paid 39 weeks and divide by 39 to get an average weekly wage.
Once you have the average weekly wage, plug it into tables published by the State of Michigan to get a comp rate. Also, make sure to select the correct tax filing status and number of dependents.
What if I’m employed for less than 39 weeks?
If employed less than 39 weeks, just take the average of the total number of weeks.
Do I need to include overtime and bonuses?
Yes, when calculating your workers’ comp rate in Michigan make sure to include overtime, bonuses, discontinued fringe benefits, and second jobs.
Watch out for insurance companies
Watch out for insurance companies who just estimate the average weekly wage using an hourly rate and 40 hours. This is incorrect and results in less money being paid. We have seen clients get shorted hundreds of dollars each week simply because the insurance company did not obtain wage records from the employer. Documents such as pay stubs and W2 forms can be helpful to prove income.
How is workers’ comp calculated in Michigan when someone is only considered partially disabled?
Insurance companies use post-injury wage earning capacity (PIWEC) to reduce the comp rate. A vocational counselor says jobs are available and uses phantom wages to reduce what is paid. Wage earning capacity assessments are not fair and should be challenged in court. Speak with an experienced attorney if this occurs.
Injured while on-the-job in Michigan? Contact our lawyers now
If you were injured while on the job in Michigan and have questions about how workers’ comp is calculated for your claim, call us now, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan work injury laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Michigan Workman’s Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled employees exclusively for more than 35 years. Call (844) 316-8033 for a free consultation today.