What is temporary partial disability?
Temporary partial disability (TPD) applies when you can work during recovery, but only at reduced hours or lighter duties that pay less than your pre-injury job. Workers' comp pays a benefit, usually two-thirds of the difference between your pre-injury average weekly wage and your current earnings.
How is a wage-loss benefit calculated?
Most states pay two-thirds of the gap between your pre-injury average weekly wage and what you now earn on light duty. For example, if you lose $300 per week, the benefit is about $200 per week, subject to the state maximum weekly rate and a statutory limit on the number of weeks.
How long can I receive temporary partial disability?
States cap the duration, commonly between 225 and 450 weeks depending on the state, or until you reach maximum medical improvement. Once your condition stabilizes, any lasting impairment is handled through permanent partial disability rather than temporary partial benefits.
Is temporary partial disability taxable?
No. Like other workers' compensation wage-replacement benefits, temporary partial disability payments are not subject to federal income tax, which is why the benefit is set at two-thirds of the wage loss rather than the full amount.