Is Gross or Net Income Used To Determine the Average Weekly Wage in Workers’ Comp Cases?

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If you have been injured by an accident at work, you will find it is in your best interest to meet with an attorney as soon as possible to be sure your rights are being protected. When you meet with an attorney, you will likely find that one of the first questions they ask you as they begin working on your file is “how much were you making at your job?”

Workers' Compensation Questions

Your income at your job prior to the accident is important to your workers’ compensation case because it allows your attorney to determine your “average weekly wage.” Your average weekly wage is the calculation used to determine your “comp rate,” which equals 66% of your average weekly wage.After your attorney determines your average weekly wage using your gross income, your comp rate (which is the amount you will be paid until you either return to work or a settlement is reached) will be determined by calculating 66% of your average weekly wage.

As you can see, your average weekly wage is the number that ultimately determines the amount of money you will be entitled to receive while you wait for a settlement in your case or wait to appear in front of the Industrial Commission. Your attorney will use an average of your gross income prior to your injury to determine the average weekly wage for your case.

Do I Have To Pay Taxes On Workers’ Compensation Settlements?

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The task of fighting for, being approved and actually receiving your workers’ compensation settlement is daunting enough, but what are you to do when you file taxes? Do you pay taxes on the settlements? Should you be setting money aside to cover that?

Circling a Date on CalendarThe answer to your question is no. Workers’ compensation settlements are fully tax-exempt if paid under the Workers’ Compensation Act; according to Publication 907, “Workers’ Compensation for an occupational sickness or injury if paid under a Workers’ Compensation act or similar law” is exempt.

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How is the Household Size Determined for the Means Test?

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The basic purpose of the Means Test is to determine whether a Debtor is eligible to file Chapter 7 bankruptcy. Along with other supporting requirements, the Means Test plays a major role in Chapter 7 bankruptcy. The Means Test also tells us whether a Debtor would need to pay back some of their debts in a Chapter 13 bankruptcy if they do not “pass.” Simply put, the Means Test determines the Debtor’s monthly income by taking the Debtor’s household’s gross income and subtracting qualified deductions. By doing this, we can decide whether the Debtor would need to be looking into filing a Chapter 7 bankruptcy or Chapter 13 bankruptcy.

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Can I Collect Rent If I’m Surrendering Rental Properties in Bankruptcy?

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Am I Personally Responsible for the Taxes Owed On My Business?

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The Internal Revenue Service (IRS) uses a basic logic that if you have any signing authority over the business bank account, then you can be held personally responsible for certain taxes owed by that business.  So, yes, if you own a business or part of a business, be prepared to pay certain accrued taxes. This is especially true if you have a sole proprietorship. Additionally, no matter what type of business you own or owned, you also need to be careful when it comes to taxes that you should have paid as an employer – for example, the necessary taxes you pay to the government for your employees (social security, etc.). These can later be assessed as “civil penalties” which you are personally responsible for, even if the business later dissolves.

Taxes Owed on Business | Filling Out Paperwork

The general rule when it comes to taxes is that the government – state or federal – almost always gets paid.

What if you have dissolved the company?  Unfortunately, dissolving a business will not eliminate any tax debt or liability.  Even filing bankruptcy will not take care of all taxes.  Generally speaking, the only time taxes may be wiped out in a bankruptcy is if they were filed three years prior to the bankruptcy filing date.  The civil penalties mentioned above are also taxes that you can be personally responsible for even if the business has been dissolved.

If you owe a large amount to the government for taxes and are having a hard time coming to terms for a payment plan with the IRS, you may want to look into filing a Chapter 13 bankruptcy, which is a structured repayment plan.  This will keep the penalties from accruing and enlarging your original balance owed.

If your business is still operational, you may look into reorganizing your business debt in a Chapter 11 bankruptcy.

The bottom line is that even though you can still be held personally responsible for certain business taxes, you are not limited to repaying your taxes outside of bankruptcy. Certain types of bankruptcy may actually be a better alternative for you when it comes to setting up a repayment plan.

What Should I Expect at a Workers’ Compensation Mediation?

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In North Carolina, if a party to a workers’ compensation case, such as an injured worker or an employer/insurance company, has requested a hearing in front of the North Carolina Industrial Commission by filing a Form 33, a mediation is required by state law. However, if an agreement or settlement is reached by all parties before the mediation, the mediation is not necessary. Sometimes, the parties agree to an informal mediation between themselves.

The purpose of the mediation is for the parties to come together, with the assistance of an approved mediator, and try to settle the matter without the cost and expense of a formal hearing in front of a deputy commissioner, who is similar to a judge.

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Want To Know What It’s Like To Be Harassed By A Creditor? Real Phone Call

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Many of those who are facing financially tough times right now are stressed out even more by creditors who call non-stop. Creditors push the boundaries on what they may and may not do to collect a debt.

For example, here is a voicemail a client of ours emailed us the other day. Our client allowed us to post this voicemail so others could see they are not alone with the constant and harassing phone calls.

After receiving the voicemail we called the number back and spoke with someone with the company. They explained they didn’t know our client had filed bankruptcy. However, we confirmed their mailing address was accurate and explained we had previously sent proper notice of the bankruptcy. We then let them know they were violating the Fair Debt Collection Practices Act and any further attempt to collect on this debt would be met with a motion for sanctions.

They told me they didn’t do anything illegal and, after explaining I had a recording of the voicemail, they hung up on us. Before doing so, they explained they would notate in their system that our client had filed bankruptcy and she would not be contacted again. To date, she hasn’t received another call.

Regardless, this phone call shows some creditors will do whatever it takes to collect on debts. If you believe a debt collector is overstepping the boundaries let them know that they are violating the Fair Debt Collection Practices Act. It is important to keep detailed notes about who you spoke with (including their identification information), what time they called and what they said. Without this information it is difficult to be successful in a motion for sanctions against the creditor.