Employees are the lifeblood of every company, vital for the services and products the company provides. Therefore, they must be protected by the people that employ them. Workers’ compensation can provide this protection to benefit employers and employees. Keep reading to learn more about workers’ compensation and the regulations surrounding it.
What is Workers’ Compensation?
Workers’ compensation insurance protects employees against the unforeseen costs of injury or illness acquired on the job. It’s beneficial and required for both parties. Employees receive compensation and time off for workplace injuries. Plus, companies can protect themselves from liability for injured employees.
Laws and Regulations
Massachusetts requires all employers to acquire workers’ comp insurance to protect themselves and their employees. The Department of Industrial Accidents (DIA) is in charge of regulating this insurance.
Workers’ compensation covers situations such as:
- Work-related injuries and illnesses: Any injuries or illnesses that occur while on the job should be covered. Medical costs will be covered as long as employees immediately report them to a healthcare professional to receive their claim.
- Disability: If an employee is injured on the job and becomes permanently disabled and unable to work, they can receive 60% of their previous salary for up to three years.
- Recovery time: Any time off work due to physical therapy or recovery is covered by insurance and protects employees from missing wages.
- Death: If an employee passes away while performing work duties, the employee’s family can receive compensation, such as to help with funeral costs.
The DIA requires that all employees receive coverage no matter how much they work. They also make sure every employee has the correct coverage and class depending on the risks of the job. Employees can find what their specific workers’ comp covers on the DIA website.
Is Workers Compensation Taxable?
In the state of Massachusetts, workers’ comp isn’t taxable. In the event of an accident, workers’ comp is not considered as your income for both state and federal tax purposes as long as the insurance company follows state laws for payment. However, some circumstances can affect this, like receiving disability benefits.
Contact us to learn about workers’ compensation insurance needs for your business!