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How Much of My Workers’ Comp Settlement Do I Get to Keep?

Workers’ compensation is a safety net designed to provide financial assistance to employees who are injured while performing their job duties. If you’ve been injured at work and are considering a settlement with the workers’ compensation provider, a crucial question arises: how much of the settlement will you actually keep? At Robinson & Geraldo, PC, we are dedicated to providing you with the necessary support to ensure that you receive the benefits you deserve, efficiently and effectively.

The Basics of Workers’ Compensation Settlements

A workers’ compensation settlement is a lump sum payment offered by the insurance company in exchange for ending your ongoing benefits claim. This can include compensation for:

  • Lost Wages: Compensation for lost wages is a core element of workers’ compensation. It is intended to provide financial support during the period an individual is unable to work due to a job-related injury. This support helps maintain financial stability and mitigate the economic impact during the recovery phase.
  • Medical Expenses: Workers’ comp settlements typically address both past and anticipated future medical expenses associated with the injury. This comprehensive coverage is crucial to ensure that the injured worker is not burdened by medical costs, facilitating a focus on recovery without the stress of financial strain from medical bills.
  • Permanent Disability: In cases where an injury leads to permanent impairment, a settlement might include compensation that reflects the long-term impact on the injured worker’s earning capacity. This component is designed to address the financial implications of a reduced ability to work or the necessity for a career change, which might involve different skills or lower income potential.

Understanding the nuances of a workers’ compensation settlement is essential for making informed decisions that align with your long-term interests. Whether it’s assessing the adequacy of the settlement in covering all related costs or understanding the legal and tax implications, having a knowledgeable Columbia workers’ compensation lawyer can be invaluable. At Robinson & Geraldo, PC, our team is equipped to guide you through each step of your claim. If you have been injured at work and are considering a settlement, reach out to us today for unparalleled legal guidance tailored to your unique circumstances.

What Do You Actually Keep?

After medical bills and legal fees, what remains of your settlement is yours to keep. Here’s a breakdown of what may affect how much of your settlement you get to keep:

  • Outstanding Medical Bills: Settlements often allocate funds specifically for the clearance of any outstanding medical debts incurred due to the injury. This ensures that the settlement amount received by the injured party is not diminished by existing debts, providing clearer financial relief.
  • Attorney Fees: In workers’ compensation cases, legal representation is typically engaged on a contingency basis, meaning the attorney’s fee is a percentage of the settlement awarded.
    This fee structure aligns the interests of the attorney with those of the client, incentivizing the attorney to secure the best possible settlement. Fee percentages are regulated by state workers’ compensation boards to ensure they are reasonable, generally ranging from 15% to 25% of the settlement amount.
  • Federal Taxes: The tax treatment of workers’ compensation settlements is an important aspect to consider. According to IRS guidelines, workers’ compensation benefits related to job injuries are not taxable. This includes lump-sum settlements, as stated in IRS Publication 525.
    However, portions of the settlement that compensate for lost wages might be considered taxable income. Consulting with a tax advisor is crucial to accurately assess the tax implications of your settlement, ensuring compliance and optimal financial planning.

It’s important to understand that while attorney fees can reduce your take-home amount, having a workplace accident attorney from Robinson & Geraldo, PC can often increase your settlement amount significantly, more than offsetting this cost. Our team of attorneys for work injuries ensures that every factor of your case is considered to maximize your compensation.

Considerations for Future Medical Expenses

One of the most critical elements to consider when negotiating a workers’ compensation settlement is the potential need for ongoing or future medical care. This aspect is vital because, once a settlement is agreed upon and finalized, you generally lose the ability to claim additional funds for issues related to the injury if your medical condition deteriorates or new complications arise.

The future medical expenses related to a workplace injury can be extensive and varied, depending on the severity and nature of the injury. These might include ongoing medications, surgeries, physical therapy, and any adaptive equipment needed. Therefore, projecting these costs accurately is essential to ensure that the settlement covers all potential future medical needs without shortfall.

To accurately project these expenses, it’s crucial to consult with medical professionals who can provide a detailed forecast of expected treatments, associated costs, and the projected timeline for these treatments. This information becomes a foundational part of your claim, informing the negotiation process.

Alongside medical experts, working with a skilled attorney is equally important. Your attorney can utilize the detailed medical forecasts to argue for a settlement that adequately considers these future medical costs. This negotiation is delicate and requires a thorough understanding of workers’ compensation law, the intricacies of medical cost estimation, and strong negotiation skills.

Getting the Help You Deserve

If you’ve been hurt at work and are considering a workers’ comp claim, it’s crucial to act promptly to ensure your rights are protected. With our help, you can focus on your recovery while we handle the legal details of securing the compensation you deserve. Schedule a consultation with Robinson & Geraldo, PC today. Let us help you keep what you deserve.

Call 202.544.2888 or visit this page to get started.

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