Recently, I have dealt with a lot of Michigan car accident no-fault claims with wage loss issues. The following is a brief run-down on wage loss benefits and Michigan car accident law.
Under the Michigan no-fault law, an injured victim is entitled to receive lost wages from an insurance carrier if he or she is injured in a car accident.
The benefit it pretty straight forward. It consists of loss of income from work an injured person would have performed after the date of the accident if he or she had not been injured. The injured person is entitled to receive 85% of their gross wages. This benefit is available for up to three years from the date of the accident.
The insurance company responsible for paying this benefit depends on various factors. However, under the rules of priority, your own insurance company is the insurance company most likely responsible for paying your wage loss claim.
To substantiate a wage loss, you need to show reasonable proof of wages. Usually, the insurance company will need a wage verification form completed by the car accident or truck accident victim’s employer. This form must be completed by the company and must include how much the victim earned and the period of time the victim worked for the company. If a wage verification form cannot be completed, sometimes a W2 form or pay stubs that immediately precede the Michigan car accident is enough to provide reasonable proof of income.
Wage loss situations get tricky however when the accident victim is self-employed, the sole employee of a corporation or a 1099 employee. In these situations, many employees deduct various items to avoid paying taxes on income they ordinarily would have to pay. Because of this reality, the income of self-employed or sole employee car accident victims are scrutinized in detail by insurance companies to see if in fact the employee earned any income. Often they will ask for previous years tax returns and/or W2 forms and pass this information along to an accounting they hire to review the wage loss claim. If this situation occurs to somebody you know, it is important they consult an attorney and get advised about their rights and responsibilities.
The wage loss benefit found in the Michigan no-fault law is an important and wonderful benefit. This benefit should be explored by any Michigan car accident or Michigan truck accident victim.