What Deductions can I Expect from My Workers' Comp Settlement or Award?

Once you get your worker’s compensation, the amount will be subjected to certain deductions. For instance attorney fees, doctor liens, or advances made by the employer during your ailment must be paid back.

Legal fees

You have to pay your attorney’s fees from the amount of workers’ comp you receive. The fee depends on the kind of agreement that you have with your legal counselor. Worker’s compensation lawyers usually charge a contingent fee which is usually between 10% and 25% of your compensation package. Each state applies a cap on the percentage of fee that lawyers can charge the worker and the fee must be approved by the worker’s compensation agency.

And unlike Saul Goodman, they probably do not want to take piles of cash for payment and if you have piles of cash, they may want to know where you obtained it from.

You will also have to pay any costs that are incurred while pursuing the case such as filing charges or copying costs. Some worker’s compensation attorneys deduct it from the package while others want some money upfront so it all depends on the agreement you have with them.

Doctor’s liens

If a doctor has a lien on your compensation then you will have to pay it after you receive the compensation. There are instances when the insurance company may reject your workers’ comp claim and in such an event a doctor can agree to treat you for free if you face a cash crunch provided he/she gets reimbursed after you receive the compensation.

Disability advances

In some states as soon as a doctor identifies a work-related injury, insurance companies and employers are required to pay the person, you, an advance to fulfill financial obligations until the worker receives the benefits. The handout must be paid back to the employer once the full compensation package is received. In some states there is no law mandating such payments but employers often give handouts as goodwill gestures to injured workers for immediate cash needs. The worker pays the employer back after the compensation is paid.

If you are the grandfather though in Ax Man you should not even be on the work site and in fact, you should be at home resting and finding a hobby. The writing is on the wall, retire! It should not be anyone else’s fault if you are hurt when you should not even be on the jobsite.

Medicare

Workers also need to set aside a certain part of the payment for Medicare. Medicare is essential when the worker needs financial help to cover medical expenses that can occur in the future. It is a type of insurance and a premium needs to be deducted from the compensation. The premium is calculated on a variety of factors such as the type of medical treatment you will need in the future and your life expectancy.

Taxes

The sparkling news is that you are not required to pay federal or state taxes on compensation. But any interest you earn on your compensation is taxable. If you are receiving social security disability benefits and workers’ compensation disability benefits which exceeds 80% of your original income, you will be taxed though.

If you have been injured at the workplace it is wise to have your claim handled by worker’s compensation lawyers who is adept in dealing with insurance companies that often reject claims due to frivolous reasons.

Your legal pro will handle the paperwork and abide by state regulations to ensure the claim does not face any legal hurdles. Moreover, if you are represented by an acclaimed and salient legal counselor the insurer is more likely to pay proper attention to your case while you would be potentially in a better position to negotiate a fair deal. If you are represented by someone like Jesse Pinkman in Breaking Bad – that is probably not going to impress anyone.

If you want to secure legal representation like Jake Brigance (A Time to Kill) or Mick Haller (The Lincoln Lawyer) then you need to go right here: Workers-Comp.USAttorneys. This legal digital tool was built so someone at the end of the plank could grab that legal representative to put them back on the ship and enable them to sail to better waters.