Temporary Total Disability is one of the most common terms. The acronym is TTD. This level of Workers’ Comp disability reflects an injury that has rendered the employee completely unable to perform any job functions on a temporary basis. The employee is expected to make a full recovery and return to work. In the interim, compensation paid is usually a percentage of weekly wages until the worker returns to the job.
Each state mandates very specific rules on TTD. The injured employee usually receives a tax-free payment of 2/3 of their pre-tax average weekly wage. There are state-mandated minimums and maximums for this type of benefit. One of the largest tasks facing a Workers’ Comp claims department is paying the weekly benefit checks timely.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com.