workers comp calculation

[GUEST JMM]

I may not be on the right message board but I am wondering if anyone can verify that all my pre-tax deductions are exempt from workers compensation calculation.

 

I also understand that the 401K pre-tax deduction is not.

Any help would be appreciated

[Sandra Pearce]

In the state of Louisiana the calculation is based on gross wages. 

 In the determination of "wages" and the average weekly wage at the time of the accident, no amount shall be included for any benefit or form of compensation which is not taxable to an employee for federal income tax purposes; however, any amount withheld by the employer to fund any nontaxable or tax-deferred benefit provided by the employer and which was elected by the employee in lieu of taxable earnings shall be included in the calculation of the employee's wage and average weekly wage including but not limited to any amount withheld by the employer to fund any health insurance benefit provided by the employer and which was elected by the employee in lieu of taxable earnings shall be included in the calculation of the employee's wage and average weekly wage.

Using your example in Louisiana the wage definition would include pre-tax benefits.

Your state WC statute defines the calculation.

 

 

[hr for me]

agree that it is going to be state specific. If you post your state, hopefully someone can help you out specifically.