Even in the safest working conditions, accidents can happen. Even unintentional injuries can be debilitating to a worker’s ability to do their job. For those hard times when workers are injured, there is worker’s compensation.
Worker’s compensation is a system of government benefits that are provided to workers who are injured on the job. Worker’s compensation are provided by the U.S. Department of Labor's Office of Workers' Compensation Programs.
If the worker’s compensation is not drawn from social security benefits but strictly from U.S. Department of Labor's Office of Workers' Compensation Programs, then it is generally not taxable.
There are many types of worker’s compensation programs including: Wage replacement benefits, Medical treatment, and Vocational rehabilitation. Each program covers different workers under different circumstances and has different compensation programs.
The employer is required to pay worker’s compensation insurance. How much must be paid for this insurance and what kind of coverage it must offer are varied by state.