Insured Solutions
Insured Solutions

When are lost wages awarded for workers’ comp and how are they calculated?

When employees are hurt on the job, they may miss work. As a benefit a portion of their lost wages are paid back to them through workers’ comp.

Lost wages for workers’ comp begin as soon as an employee misses work due to the injury. Some states’ workers’ comp pay lost wages immediately, others within 3 days – while states like Georgia have a 7-day waiting period before payments begin.

It’s up to your client to decide how to pay an employee waiting for workers’ comp to begin. But workers’ comp makes sure the employee never misses a paycheck. The goal of workers’ comp is to ensure that employees don’t suffer loss of income or stability due to a work injury.

Most states pay 67% of regular wages – tax free. Deductions and benefits are not taken out of money awarded to injured workers. An employee off work should not receive both workers’ compensation and wages for the same time period. If they do, the money is taken out on the back end, usually in the case of a claim that is litigated.

When an employee is off work for an extended time, some of your clients may decide to pay employee benefits the entire time. Others may not be able to do so. When this happens, the your client can opt to send a 30-day notice with an invoice by certified mail giving the employee the choice to pay the benefits themselves or risk losing coverage.