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What is workers’ compensation and what does it pay?

Workers’ compensation is a benefits system for employees who are injured, become ill or die while on the job. It is required by law for most employees in Illinois and across the country and in most case, it will pay out regardless of who was at fault in a workplace incident.

Workers’ compensation covers most employees from the beginning of their employment. It will provide benefits for covered employees who are injured or become ill during the course of their employment. The benefits include:

— Medical care

— Temporary total disability

— Temporary partial disability

— Vocational rehabilitation

— Permanent partial disability

— Permanent total disability

— Death benefits

Federal and state taxes do not have to be paid on workers’ compensation income. It does not need to be reported on a worker’s tax returns.

Workers’ compensation

While most employees who are covered and receive workers’ compensation benefits are not eligible to sue their employer, there may be a third party that was at-fault for the accident. Should a claim for workers’ compensation be denied, an attorney can provide information on filing an appeal.

Source: Illinois Workers’ Compensation Commission, “Handbook on Workers’ Compensation and Occupational Disease” Aug. 27, 2014