When a New Jersey resident is injured and the injuries result in an inability to work, they have the right to seek Social Security disability benefits for injury. When the injury occurred on the job, they can also get workers’ compensation. A common question that is asked is whether the workers’ compensation benefits will have an impact on the Social Security disability benefits and if there will be a reduction in either. For this and questions like it, it is wise to have legal assistance from the start.
When a person is getting workers’ compensation after a job-related injury, there are limits to what the person can receive from the combination of SSD and workers’ compensation. The general rule is that the amount the injured person gets cannot go beyond 80 percent of what they earned – on average – prior to the disability. There is a mathematical formula to determine how this is handled. When the amount goes beyond 80 percent, the deduction will come from the SSD benefits.
An example would be the following: if a person was making $4,000 each month, the person and his or her family could get $2,200 in SSD benefits. However, they are also getting half of what they earned from workers’ compensation. Since the total amount comes to $4,200, that is beyond 80 percent of what they should be receiving. The disability benefits will be reduced until 80 percent – $3,200 – is reached. For those who get a lump sum in workers’ compensation, this too can affect SSD benefits. When there are changes to the workers’ compensation situation, the Social Security Administration should be told so the benefits can be adjusted accordingly.
There are many avenues for people who are injured and unable to work to make ends meet with help from the government. SSD benefits is one integral method for doing so provided the benefits’ requirements are met. However, there are rules that must be adhered to when the person is also getting workers’ compensation after suffering an injury on the job. A law firm that helps those seeking Social Security disability benefits can be critical to following the rules for lost wages and other concerns.