How Does Workers Compensation Benefits Affect Your Social Security Disability Benefits? - Wilkes-Barre, Scranton Personal Injury Lawyers

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How Does Workers Compensation Benefits Affect Your Social Security Disability Benefits?

In our practice, we have many clients who have suffered a work injury and become disabled. Consequently, they pursue both a Workers  Compensation claim and a Social Security Disability claim simultaneously.  A question is often raised as to how the benefits affect each other.

The Workers  Compensation benefits wage loss benefits act as an offset to the wage earner s Social Security Disability benefits.  However, Social Security applies a formula to calculate the offset.  According to the Social Security Administration, the injured work is entitled to 80% of the highest monthly amount that they made prior to their work injury when Social Security combines the Workers Compensation wage loss benefits with the applicant s Social Security benefits.  The Social Security Administration will not pay any benefits in excess of that amount.

For example, Ted was a salaried employee who made $60,000 per year.  He therefore earned $5,000 per month.   Ted was injured at work and receives Workers  Compensation benefits of $769.23 per week, which equals $3,333.33 per month in wage loss benefits.   He filed for Social Security Disability and was awarded  benefits.  According to his earning statement from Social Security, Ted is to receive $2,000 a month in disability benefits.  80% of $5,000 (his highest monthly amount prior to his work injury) equals  $4,000.  He would therefore receive $666.67 a month in disability benefits. ($3,333,33 in workers  comp plus $666.67 in disability benefits equals $4,000.00.)  Ted s Workers Compensation benefits are not affected; instead, his Social Security benefits are reduced.

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