Whether due to an accident at work or a health issue that prevents you from working, you may need disability benefits to replace lost income. Two standard options are workers compensation and Social Security disability benefits. While they seem similar, as any Charleston workers comp attorney will tell you, there are some key differences to understand.
With this knowledge, you can get the benefits you need to avoid financial hardship during your recovery or time out of work.
What Is Workers Compensation?
Workers compensation provides financial assistance and medical care for employees who are injured or become ill on the job. Each state administers its workers comp program, so specific rules vary depending on where you live.
But in general, if you suffer an injury or illness directly related to your job, workers comp will help pay for your medical bills and may provide income if you miss work.
What Is Social Security Disability Insurance (SSDI)?
Social Security Disability Insurance or SSDI refers to long-term disability insurance paid for by mandatory FICA taxes withheld from your paycheck. To qualify for SSDI, you must have a medical condition that prevents you from working for at least one year or is expected to result in death.
The disability must significantly limit your ability to do basic work activities for which you are otherwise qualified based on your age, education, and work experience.
Key Differences Between Workers Comp and SSDI
Workers compensation and Social Security disability insurance both provide income and medical benefits for people with disabilities or work-related injuries. However, there are some key differences to understand:
Source of Benefits
Workers comp benefits come from your employer, while SSDI benefits come from the Social Security Administration. Workers comp is administered at the state level, while SSDI is a federal program.
Cause of Disability
To qualify for workers comp, your disability must arise from a work-related injury or illness. SSDI does not require the disability to be work-related. You can qualify for SSDI due to a medical condition, whether congenital, traumatic, or progressive.
Medical Coverage
Workers comp provides coverage for medical care related to your work injury, including hospital stays, surgeries, physical therapy, and medications. SSDI does not provide medical insurance, but you may be eligible for Medicare after receiving SSDI for two years.
Taxability of Benefits
Workers comp benefits are not taxable, while SSDI benefits may be taxable depending on your income. About one-third of SSDI recipients have to pay taxes on their benefits.
Duration of Benefits
Workers comp benefits typically continue as long as your disability lasts or until you reach maximum medical improvement. SSDI benefits continue as long as you remain disabled, and you must undergo periodic reviews to confirm your eligibility. SSDI benefits can continue indefinitely.
Can You Receive Both Workers Comp and SSDI?
Many people who qualify for workers compensation benefits also qualify for Social Security disability insurance. The two programs have different purposes, though. Workers comp provides wage replacement and medical benefits for on-the-job injuries, while SSDI provides income for people with long-term disabilities that prevent substantial gainful work.
You can usually receive workers comp and SSDI benefits simultaneously. However, your SSDI payment may be reduced depending on the amount of your workers comp payment. This is because SSDI limits how much income you can receive while still qualifying for benefits. If your workers comp payment exceeds 80% of your pre-disability income combined with your SSDI payment, your SSDI benefit may be reduced.
Reach Out to a Charleston Workers Comp Lawyer for Additional Clarification
If you have any questions about the information provided regarding workers compensation and Social Security disability insurance, please do not hesitate to contact our experienced Charleston workers comp attorneys.
Please call us today at 843-310-5997 to schedule a free consultation. During our meeting, we can discuss your situation, answer your questions, and determine the best path forward to ensure you receive all the benefits to which you may be entitled.