Confused about Social Security Disability and Workers’ Compensation? If you’ve become disabled, it’s important to know the difference, because the application processes and outcomes are different.
Workers’ Compensation
This is a public insurance funded by employers and includes both medical treatment for on-the-job injuries and/or illness, and partial payment for lost wages. Injured employees can heal away from work, and be paid for their temporary disability. Should an employee discovered that he or she is permanently disabled, permanent benefits are paid. If an employee’s death occurs, benefits can be paid to the survivors.
Texas calculates an employee’s Average Weekly Wage (AWW) as the amount of wages they receive during the period 13 weeks prior to the work-related injury/illness, and uses it to determine the amount of WC benefit payments. The maximum benefit will not exceed that amount, and will vary depending on the type of injury (temporary, longer-term, or life benefits.)
In Texas, employers may offer WC coverage for employees who become injured on the job, but they can opt-out of the state’s plan and offer their own private coverage (self-insure.) If your employer does carry the state of Texas WC, and you apply for Social Security Disability, there may be some overlap. Should you receive both at the same time, you may see a decrease in one or the other.
Social Security Disability
This federally funded program pays you based on your average monthly lifetime earnings, not to exceed 80% of your previous average monthly earnings. SSD pays you benefits if you are unable to work due to a medical condition that will last a year, or is terminal.
You can complete your SSD application online, by phone or in person by appointment at your local Social Security office. However, you may not receive benefits right away. The Social Security Administration examines your case and makes a determination based on your application. Therefore, it’s important to completely fill out your application and have all of your important information handy when you do. This information includes your name, date/place of birth, Social Security number, the same information on your spouse or former spouse(s), any minor children, earnings, and other pertinent information. (A complete listing of required information is available on the Social Security Administration’s website.)
Possible Offsets
If you are receiving Workers’ Compensation and apply for Social Security Disability, you may receive a smaller amount of SSD than if you would if you did not receive Worker’s Compensation. Social Security calculates the amount that you would receive monthly, and you’ll only receive the difference between your WC payments and the SSD amount. Your total payments cannot exceed 80% of your average monthly income when you were working.
For instance, if you made $3,500 a month while you were employed, your total disability income would be $2,800 per month. If you are receiving disability payments of $1,800 from Workers’ Compensation, then your monthly SSD payment would be $1,000. If you are no longer receiving Workers’ Compensation, then your SSD payment would be the full $3,500 per month.
Both Social Security Disability and Workers Compensation are publicly funded programs, as are others (i.e., civil service disability benefits.) Therefore, disability payments from private sources, like pensions or insurance benefits, don’t affect your Social Security disability benefits. VA benefits, state and local benefits and SSI also do not impact Social Security benefits.
In Texas, offsets to WC aren’t allowed for SSA retirement benefits, and lump-sum payments aren’t usually authorized, except for accrued benefits that haven’t been paid yet.
Need Help? Call Us
If you’ve submitted applications and are denied benefits, don’t give up. The Herren Law Firm has helped more than 4,000 Houstonians get the help they need dealing with Social Security and Workers’ Compensation cases. Call us today at (713) 682-8194 or (800) 529-7707 to schedule your free consultation. Our contingency fee arrangement means you won’t have to pay any fees until we win your case.
