Is Workers Comp Taxable in Charlotte NC

Workers Compensation Lawyers

Charlotte is the most populous city in North Carolina. Home to over 874,579 people and known as “Charlotte USA – The New Energy Capital.” There are an increasing number of employees working in the Queen City every day.

Every business owner in Charlotte wants to make sure they take the necessary steps to protect their employees. One of the key components of employee protection is workers’ compensation insurance. This type of insurance provides benefits to employees who are injured or become ill due to their job. But do you have to pay taxes on your workers’ compensation settlement in Charlotte?

North Carolina’s Workers’ Compensation Act

The North Carolina Workers’ Compensation Act is the state law that governs workers’ compensation. The law requires most employers to carry workers’ compensation insurance and provides benefits to employees who are injured or become ill as a result of their job.

The Act was a compromise between competing interests.  On one hand, workers’ compensation provides benefits to employees who are injured or become ill as a result of their job. Benefits can include lost wages, medical expenses, and death benefits.

On the other hand, the Act was intended to protect employers from liability for injuries or illnesses that occur in the course of employment.


There are a few exceptions to the workers’ compensation law in North Carolina. For example, federal employees, some railroad employees, and those engaged in work on navigable waterways are not covered under state law. In addition, certain types of businesses may be exempt from the requirement to carry workers’ compensation insurance.

Is Workers’ Compensation Taxable in Charlotte, NC?

Workers’ compensation indemnity benefits are not taxable. 

Types of Charlotte Workers’ Compensation Benefits

Workers’ compensation provides several different types of benefits, which include:

  • Medical Benefits: Covers the cost of medical treatment for your work-related injury or illness. This can include doctor’s visits, hospital stays, surgery, prescription medication, and mileage reimbursement.
  • Indemnity Benefits: If you are unable to work due to your injuries, you may be entitled to temporary total disability. These benefits are typically two-thirds of your average weekly wage, and is referred to as your compensation rate.   There is a maximum compensation rate that is set by statute and is adjusted annually.  If you are able to work but you are unable to earn the same wages because of your injuries, you may be entitled to temporary partial disability.  These benefits are typically two-thirds of the difference between your average weekly wage and your lowered post injury wages.
  • Permanent Partial Disability: At the conclusion of your medical care, if your doctor determines that you have a permanent impairment, they will assign an impairment “rating.”  
  • Death Benefits: If an employee dies as a result of their job-related injuries, their surviving spouse and dependent children may be eligible for death benefits.

Filing a Workers’ Compensation Claim in Charlotte, North Carolina

In North Carolina, injured workers must provide written notice to their employer within 30 days AND file their workers’ comp claim with the North Carolina Industrial Commission within two years of the date of their injury or illness. Workers’ compensation claims can be filed online, by mail, or in person.

How Long Do Workers’ Compensation Benefits Last in Charlotte, North Carolina?

In most cases, injured Charlottean workers can receive benefits until they reach maximum medical improvement, but not longer than 500 weeks unless exceptional circumstances exist. Maximum medical improvement (MMI) is when the authorized treating physician determines your condition has stabilized and is not expected to improve further.

Contact an Experienced Charlotte Workers’ Comp Lawyer Today

If you are an injured employee, you deserve to get the full benefits that you are entitled to under the North Carolina workers’ compensation Act. If you have been injured at work, don’t hesitate to contact an experienced attorney. At The Law Offices of Jason E. Taylor, we work with you on your workers’ compensation case to ensure you get the compensation you deserve to focus on your recovery and get back to work as soon as possible.

Subscribe to Monthly Newsletter