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Reduced Earnings
#1
Hey all. I posted this question in one of my other posts, but I don't know if anyone is familiar with Reduced Earnings? Basically I can no longer make the amount of money that I used to at my former job, therefore, If I go get a job making less, then don't they make up a percentage of the difference?

For example, I used to make working 40 hours a week approx $700 gross. Now I am receiving $472 bi weekly from WC.

If I go get a part time job making say $200 a week, then they won't deduct the $200 from my $472 right??? Wouldn't they calculate it based on the reduced earnings? I'm getting conflicting info on this even after speaking with my attorneys agency.

I'm getting a part time job as a Nail Tech in which I will be a sub contractor. (My restrictions are no keyboarding more than 20 hours a week and no lifting over 20lbs...so I am within my restrictions)

I will be given a handwritten check from the Salon each week and then I am responsible for paying my own taxes. I'm assuming that each week I will have to email a copy of that check to my attorney in which then they will figure out my reduced earnings to alter the amount of my WC checks?

Just wondering if anyone has any history or knowlege of the reduced earnings subject and how it actually works. I am at MMI and my next doctors visit he will be assessing the percentage of loss so that I can finally get this over with and settle the case.
 
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#2
Yes they will subtract the what you are making from what they are paying you. Please be very carefull with the subcontract pay. 1) you will be responsible for the taxes. 2) you will be responsible for the SS tax.
8-05, Micro laminectomy/disectomy. 10-05 lumbar fusion L5-S1. 2-07 exploritory surgery. 12-07 medical implant, Spinal Cord Stimulator. now receiving SSDI. After going back to school, I received my degree as a mechanical engineer. What can I say, it was the only way I had to beat the system. 
 
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#3
I'm not receiving SS
 
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#4
Kitty, what I was referring to is that generally subcontractors are responsible to pay thier own federal income tax and ss tax. When you/we work for an employer they take out the federal income tax out of your pay and send it to the government. As far as ss goes they take out 7.65% and they match that amount and send that to the government for ss. lord forbid you become disabled. However if that should happen then your SSDI benifits are based on what you payed into the program.
8-05, Micro laminectomy/disectomy. 10-05 lumbar fusion L5-S1. 2-07 exploritory surgery. 12-07 medical implant, Spinal Cord Stimulator. now receiving SSDI. After going back to school, I received my degree as a mechanical engineer. What can I say, it was the only way I had to beat the system. 
 
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#5
I think what might have confused you is if your new P/T job pays you less than what they are paying you now, they will have to pay the difference of that. So if your new P/T job pays you 400 bi-wkly and they have been paying you 472 bi-wkly...they should be paying you the 72.00 bi-wkly to make up the difference.
 
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#6
you would need to pay the self employment taxes ..
 
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#7
how did this get into personal tax? she asked about reduced earnings....In NYS you get paid reduced earnings but most of the insurance companies dont like to pay it unless the WC judge awards it to you....Example- one of my out of work experiences was in 2009 when i went back out of work and was 33% disabled, i remained out for awhile at a 33% rate then went back light duty with reduced hours so i had a cut in pay....insurance compy refused to pay reduced earnings but my lawyer took it to court and they had to paid so basically i was paid what i worked and comp made up the difference i lost weekly.....hope that helps....
 
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#8
Countryygrl,

The personal tax came about as the initial poster is basically going to be a sub-contractor as a nail technician. The person that answered her was letting her know that she would have to submit a form (every quarter) showing how much she has earned and pay her share of federal taxes and social security taxes as well. Thus, she will have less money generated from the new job to put into her pocket, but the full amount of wages will be used for the reduced earnings.

We sometimes include information to a poster in regards to things that they may not of thought about when making a decision that will ultimately affect their lives.

Angel ^j^


(02-22-2011, 10:17 AM)countryygrl Wrote: how did this get into personal tax? she asked about reduced earnings....In NYS you get paid reduced earnings but most of the insurance companies dont like to pay it unless the WC judge awards it to you....Example- one of my out of work experiences was in 2009 when i went back out of work and was 33% disabled, i remained out for awhile at a 33% rate then went back light duty with reduced hours so i had a cut in pay....insurance compy refused to pay reduced earnings but my lawyer took it to court and they had to paid so basically i was paid what i worked and comp made up the difference i lost weekly.....hope that helps....

I've always been crazy, but it keeps me from going insane.
************
Happiness comes through doors you didn't even know you left open
 
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#9
Counrtryygirl

First, you are responding to a thread that is over 2 years old.

2nd, As Angel pointed out this thread has everything to do with personal tax.

3rd, Your response in post 7 is very rude, not the way of this forum.
 
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