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Average weekly benefits and taxes
#1
The average weekly benefits table in Connecticut is wrong. Workers compensation benefits are not taxable. Therefore after the normal determination of the average weekly benefit, the weekly benefit is 75% of the average weekly benefit. If the average weekly benefit is determined to be, let say, $800 the weekly benefit should be, must be 75% of that $800. Check it out, ask your lawyer, if you can't do the calculation ask somebody to do it for you. You are being robbed! 
 
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#2
i think you have misread the law.
the amount of the disability payment is calculated on the "after tax weekly wages."
the disability payment itself is not taxed and the table does not show it being taxed.


the law allows after tax wages to be used. using after tax wages is not the same as taxing the disability payment.
here is a link to the table and a detailed explanation of how to calculate the after tax average weekly wage and then the disability rate.
http://wcc.state.ct.us/download/acrobat/...3-2014.pdf

most states make is simpler by just reducing the computation to 2/3 of the weekly wage (gross). Connecticutt raises it to 75% but requires the wages be reduced to the net amount after taxes are deducted. it may result in a bit higher payment for some workers.
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
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#3
Workers comp benefits are not taxable, on 2/3 or 75% of the average weekly benefit. If the benefit is not taxable, the weekly benefit is in Ct 75% of the average weekly benefit. If after computation the average weekly benefit is $725 for a single tax payer, why do you get some $431* for your weekly benefit? If taxes are not taken out of your average weekly benefit, You should receive some $543, that is a difference of $112, which is, according to your link, the amount of tax deducted out of that $725 for a single. The weekly benefit table is based on 75% of after tax. Where do those $112 go? who get them? Please read the link you sent again, and IRS publication 525, I believe it is on page 19.

Could you explain or clarify the second line of your post "the amount of the disability payment is calculated on the "after tax weekly wages."
 
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#4
from page 110 of the 2014-2015 rate table:
an employee with an average weekly wage (as calculated by the work comp act) of $725 filing as single with one exemption is entitled to $430.79 in weekly temporary disability. the $725 includes taxes of $150.61. most employers have to deduct taxes and FICA from your wages because wages are taxed.
by after tax weekly wage I mean $574.39 ($725-$150.61). --probably close to the take home pay. 75% of your after tax wages($574.39)=$456.16

the $456.16/wk is not earned income and is not taxable.

I'm not sure what's so important about IRS 525; we both agree that workers comp disability benefits are not taxable-wages are.
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
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#5
(08-27-2015, 01:13 AM)After the normal calculation of the average weekly benefit according to the table  your net benefit is based on 75% after tax. After to my understanding means after deduction of taxes. So if the benefit is not taxable, where does the money go? This not an opinion it is the fact, you can and should check it out. Wrote: i think you have misread the law.
the amount of the disability payment is calculated on the "after tax weekly wages."
the disability payment itself is not taxed and the table does not show it being taxed.


the law allows after tax wages to be used. using after tax wages is not the same as taxing the disability payment.
here is a link to the table and a detailed explanation of how to calculate the after tax average weekly wage and then the disability rate.
http://wcc.state.ct.us/download/acrobat/...3-2014.pdf

most states make is simpler by just reducing the computation to 2/3 of the weekly wage (gross). Connecticutt raises it to 75% but requires the wages be reduced to the net amount after taxes are deducted. it may result in a bit higher payment for some workers.
 
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#6
(08-31-2015, 05:23 PM)1171 - Regarding that post or reply, when you pay taxes in this country (The Good Old US of A), by law you are supposed to receive a W2 form from you employer(s). And what happen or what does one do with those W2 forms? You fill your taxes with the IRS and the State and maybe other agency. So according to your post "$725 includes taxes of $150.61. most employers have to deduct taxes and FICA from your wages because wages are taxed ".   if it is so, shouldn\t you receive  a W2 form from the said employer? Shouldn't you receive every year from the Social  Security Administration your SS Benefits Assessment?  What about the refund from the Internal Revenue Service and the State? When you multiply $150.61 by 52  week you get a total of  $7831.72. Just imaging what that amount of money can do, even for a rich person.Please Shepherd, guide the people toward the true. It seems like your forum does not have too many participants, because I can't understand that  nobody says anything about this. Are we that disconnected with reality that we even forgo our own benefits? Wrote: from page 110 of the 2014-2015 rate table:
an employee with an average weekly wage (as calculated by the work comp act) of $725 filing as single with one exemption is entitled to $430.79 in weekly temporary disability. the $725 includes taxes of $150.61. most employers have to deduct taxes and FICA from your wages because wages are taxed.
by after tax weekly wage I mean $574.39 ($725-$150.61). --probably close to the take home pay. 75% of your after tax wages($574.39)=$456.16

the $456.16/wk is not earned income and is not taxable.

I'm not sure what's so important about IRS 525; we both agree that workers comp disability benefits are not taxable-wages are.
 
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#7
(08-27-2015, 01:13 AM)1171- I just want to ask your permission to use your replies on some blogs. May I use your replies on my blog and some others? Wrote: i think you have misread the law.
the amount of the disability payment is calculated on the "after tax weekly wages."
the disability payment itself is not taxed and the table does not show it being taxed.


the law allows after tax wages to be used. using after tax wages is not the same as taxing the disability payment.
here is a link to the table and a detailed explanation of how to calculate the after tax average weekly wage and then the disability rate.
http://wcc.state.ct.us/download/acrobat/...3-2014.pdf

most states make is simpler by just reducing the computation to 2/3 of the weekly wage (gross). Connecticutt raises it to 75% but requires the wages be reduced to the net amount after taxes are deducted. it may result in a bit higher payment for some workers.
 
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#8
no.
please do not excerpt or quote any of my content anyplace else.
I wish to control my own comments and posts.
you may direct others to this site or share with me links to other sites.
Reminder :
........Each state has their own comp system; POST YOUR STATE to get accurate information. Use the search feature to find information from similar questions.
THANKS FOR POSTING.
 
Reply
#9
(06-28-2016, 03:32 PM)1171- I understand and will not use them. By the way you did not say anything about the reply for you post of 08/31/15, you are not upset, r u? Wrote: no.
please do not excerpt or quote any of my content anyplace else.
I wish to control my own comments and posts.
you may direct others to this site or share with me links to other sites.
 
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