What are some ways to calculate workers' comp?


Quick Answer

Because each state has its own mandate regarding its workers' compensation program, it is essential to consult the home state's rates and minimum and maximum amounts, says the Houston Chronicle. Also, if an employee suffers a permanent disability, he may be eligible for lifelong compensation and medical expenses reimbursements.

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Full Answer

To check for temporary disability compensation, an employer should consult the state's rate schedule, according to the Houston Chronicle. Most states use a formula that pays a rate of two-thirds the employee's salary, within a maximum and a minimum set by law. These payments are not taxed. Employers should also check the employer's injury report to make sure the claim is acceptable and that the employee has served the mandatory waiting period without working. For example, in New York State, an employee does not receive a payment until he has gone seven days without working, but if the claim is made after 14 days without working, payments are retroactive to the date of the injury.

After calculating the employee's temporary disability payment according to the state's mandated rates, an employer needs to determine if a claimant is eligible for permanent disability payments, states the Houston Chronicle. Permanent disability payments are calculated separately from other worker compensation payments and similarly follow state mandates for rates and maximum and minimum payments.

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