How much is temporary total disability in the US?
Most states pay temporary total disability at 66 2/3% (two-thirds) of your average weekly wage, tax-free, while you are completely off work. The amount is subject to a state maximum weekly rate (tied to the statewide average wage) and a state minimum, so very high or very low earners are adjusted to the cap or floor.
What is the average weekly wage used for?
Your average weekly wage (AWW) is the basis for nearly all workers' comp wage benefits. It is usually the average of your gross earnings over the 52 weeks before the injury, including overtime and some fringe benefits. Two-thirds of the AWW becomes your temporary total disability rate.
Is there a waiting period for TTD benefits?
Yes. Most states have a waiting period of 3 to 7 days before wage-loss benefits begin. If your disability lasts beyond a longer threshold (often 14-21 days), the waiting-period days are paid retroactively. Medical benefits are covered from day one regardless of the waiting period.
Are workers' comp TTD benefits taxable?
No. Temporary total disability and other workers' compensation wage-replacement benefits are not subject to federal income tax. This is why states pay a percentage of your wage (two-thirds) rather than your full wage: two-thirds tax-free is close to your normal take-home pay.