With just over 90,000 people, Greenville is the most populous city in Pitt County, North Carolina. Close to the beach and home to the fourth-largest university in the University of North Carolina system, Greenville is an amazing place to live and work. And with so many workers bustling around on any given day, accidents are bound to happen.
If you’ve been injured at work, you may be entitled to workers’ compensation benefits. These benefits can help you cover your medical expenses and lost wages while recovering from your injury. Employers pay workers’ comp premiums, and the coverage extends to employees’ families in some cases. But are workers’ compensation benefits tax-free?
The North Carolina Workers’ Compensation Act
North Carolina’s Workers’ Compensation Act is a state law that provides benefits to injured workers. The Act covers all North Carolina employers and their employees, regardless of whether the employer is private or public. Employees covered by the Act include full-time, part-time, and temporary workers. In addition, the Act covers injuries that occur on the job and illnesses that are caused by exposure to hazardous conditions at work.
Do I Have to Pay Taxes on My Workers’ Compensation Settlement in Greenville, NC?
In general, workers’ comp payments are not considered taxable income. This includes both regular payments and lump-sum settlements. Additionally, any interest you earn on your workers’ compensation settlement is not subject to taxation. If you have any questions about whether or not your workers’ compensation benefits are taxable, you should speak with an attorney or accountant.
Taxable Workers’ Comp Benefits in Greenville, NC
There are a few instances where workers’ compensation benefits may be taxable.
Restricted Duty
If you are injured on the job, and your employer offers you a position with restricted duties, that income is considered taxable workers’ compensation in North Carolina. This is true even if the position is only temporary and pays less than your regular salary. For example, if you are a construction worker who is injured and can no longer work on the construction site, but your employer offers you a position working in the office, that income is taxable.
Social Security Benefits
If you’re receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and workers’ compensation benefits at the same time, your workers’ compensation benefits may be taxable. In this circumstance, earnings from SSDI or SSI are reduced, and the difference created by the share of workers’ compensation would be taxable.
Workers Compensation Offset
This is when you obtain benefits from state disability insurance and workers’ compensation. The complete amount cannot surpass two-thirds of your prior wages. Anything beyond that would be regarded as taxable income.
How to File a Workers’ Compensation Claim in Greenville, North Carolina
If you have been injured on the job, you should notify your employer as soon as possible. You will then need to fill out a workers’ compensation claim form. Once you have completed the forms, you will need to submit them to your employer and the North Carolina Industrial Commission. The North Carolina Industrial Commission will review your claim and determine whether or not you are eligible for benefits.
If you are an injured worker and have any questions about North Carolina’s Workers’ Compensation Act, or if you need help filing a claim, you should contact an experienced workers’ compensation attorney. An attorney can help you navigate the claims process and ensure that you receive the benefits you are entitled to.
How Long Can I Get Workers’ Compensation Benefits in Greenville, North Carolina?
In most cases, injured workers can obtain benefits until they achieve maximum medical improvement. Maximum medical improvement (MMI) is when your condition has stabilized and is not anticipated to improve further.
Additionally, if you return to work but cannot earn your full salary, you may be eligible for partial benefits. If you have any questions about how long you can receive workers’ compensation benefits, you should speak with an attorney.
Contact an Experienced Greenville Workers’ Comp Lawyer Today
If you’re an injured worker, you deserve all the benefits you’re entitled to. An experienced Greenville workers’ compensation attorney can help you understand your rights and get the workers’ compensation settlement you deserve. Our lawyers are familiar with employment law in North and South Carolina. Contact The Law Offices of Jason E. Taylor today to schedule a free consultation. We’ll review your case and answer any questions about workers’ comp benefits and taxation.
