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What is New York State Workers Compensation?

New York State Workers Compensation is a mandatory insurance program designed to provide medical care, wage replacement, and rehabilitation services for employees injured or ill due to work-related activities. Consequently, employers must carry this insurance, ensuring protection for both businesses and workers. Most employees, including full-time, part-time, and seasonal workers, are covered under this program.

 

Benefits of New York State Workers Compensation

  • Medical care: Coverage for treatment related to the injury or illness.
  • Wage replacement: Temporary or permanent disability payments for lost wages.
  • Rehabilitation services: Support for recovery and return to work.
  • Death benefits: Compensation for dependents in the event of a workplace fatality.

 

Steps in the Workers Compensation Claim Process

 

Step

Action

1. Report the injury

Employees must notify their employer within 30 days of the incident.

2. File a claim

Employers submit a claim to the workers compensation insurance provider.

3. Medical treatment

Injured workers receive medical care for their injury.

4. Receive benefits

Employees may qualify for wage replacement and other benefits.

5. Return to work

Rehabilitation services may be offered to help workers return to their job.

Tax Considerations for Workers Compensation

According to the IRS, workers compensation benefits are generally not taxable if paid under state law. However, if recipients also receive Social Security Disability Insurance (SSDI), a portion of the SSDI benefits may be taxable.

 

Frequently Asked Questions

 

1. Are workers compensation benefits taxable?

No, under state laws, workers compensation benefits are not taxable. However, any SSDI benefits received alongside may be taxed.

2. Who is required to have workers compensation in New York?

Most employers in New York, including those with part-time and seasonal employees, must have workers compensation insurance.

3. How long does an employee have to report an injury?

Employees must report a workplace injury within 30 days to be eligible for benefits.

4. Does workers compensation cover all employees?

Yes, workers compensation covers full-time, part-time, seasonal, and public employees, but it does not include independent contractors.