Workers' Compensation Calculator

A workers' comp claim is calculated based on your Average Weekly Wage (AWW), your disability type, and your state's benefit rules. The standard benefit rate is two-thirds (66.67%) of your AWW, subject to your state's maximum weekly benefit cap. For temporary total disability (TTD), you receive this weekly benefit for the duration of your disability. For permanent partial disability (PPD), benefits are calculated by multiplying your weekly benefit by the number of scheduled weeks assigned to your impairment rating. For example, if your AWW is $1,200, your weekly benefit would be $800 (66.67% × $1,200), or your state's cap if lower.

These four terms describe the severity and duration of your work-related disability. TTD (Temporary Total Disability) means you are completely unable to work but expected to recover — you receive your full wage replacement benefit for the duration. TPD (Temporary Partial Disability) means you can return to light-duty or reduced-hours work at lower pay; benefits cover a portion of the wage difference. PPD (Permanent Partial Disability) means you have a lasting impairment but can still work in some capacity; benefits are based on an impairment rating and scheduled weeks. PTD (Permanent Total Disability) means you are permanently unable to do any gainful work; in most states benefits continue until retirement age or for your lifetime.

An impairment rating is a physician's assessment of the permanent functional loss caused by your injury, expressed as a percentage of the whole body. For example, a 20% whole-body impairment rating means the injury has reduced your overall bodily function by 20%. This percentage is used to calculate PPD benefits: it is multiplied by a state-scheduled number of weeks to determine total benefit weeks. A 20% impairment at 500 scheduled weeks (100% = 500 weeks is a common formula) would yield 100 weeks of benefits. The dollar value of each week is your calculated weekly benefit, subject to the state cap. Impairment ratings are assessed by a licensed physician under AMA Guides or state-specific standards.

In most states, workers' compensation covers 100% of reasonable and necessary medical expenses related to your work injury, with no deductible or co-pay. This includes emergency treatment, surgery, hospitalization, physical therapy, prescription medications, and medical equipment. However, your employer or their insurance carrier typically must authorize treatment, and you may be required to see an employer-selected doctor (an IME — Independent Medical Examination) at some point. Medical benefits are separate from wage replacement benefits and are paid directly to your medical providers. The wage replacement calculator above does not include medical expenses unless you enter them manually.

The timeline for a workers' comp claim varies widely depending on injury severity, dispute status, and state procedures. Simple claims with clear-cut injuries may be resolved in a few months. Claims involving permanent disability, disputed liability, or litigation can take one to three years or longer. Once you reach Maximum Medical Improvement (MMI) — the point where your condition has stabilized — your claim moves into the settlement or rating phase. A lump-sum settlement (often called a 'compromise and release') closes your claim in exchange for a one-time payment. Structured settlements pay out over time. An attorney can help negotiate the best outcome, especially for significant injuries.

In most cases, workers' compensation benefits are not subject to federal income tax or state income tax. This is a significant advantage compared to regular wages, which are taxed. However, there is one exception: if you receive Social Security Disability Insurance (SSDI) benefits at the same time as workers' comp, the combined amount may be subject to an offset — and the portion of SSDI benefits that were reduced due to the workers' comp offset may be taxable. Always consult a tax professional or workers' comp attorney for your specific situation, especially if you are receiving multiple types of disability income simultaneously.

It is illegal in all 50 states to retaliate against an employee for filing a workers' compensation claim. Retaliatory actions include termination, demotion, reduction in hours, pay cuts, or creating a hostile work environment because you filed or plan to file. If you believe you are being retaliated against, you may have grounds for a separate legal claim beyond your workers' comp case. However, employers can still terminate employees for legitimate, non-retaliatory reasons even while a workers' comp claim is active (for example, company-wide layoffs). Documenting your communications with your employer throughout your claim is strongly advised.