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Workers' Comp AWW Formula:
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The Average Weekly Wage (AWW) is a calculation used in workers' compensation cases to determine the benefit amount an injured worker should receive. It represents the worker's typical weekly earnings before the injury occurred.
The calculator uses the standard AWW formula:
Where:
Explanation: This calculation divides the total annual wages by 52 weeks to determine the average weekly earnings, which serves as the basis for workers' compensation benefits.
Details: Accurate AWW calculation is crucial for determining appropriate workers' compensation benefits, ensuring injured workers receive fair compensation that reflects their pre-injury earnings.
Tips: Enter the total wages earned during the relevant period. The amount should be greater than zero. The calculator will automatically divide by 52 weeks to determine the average weekly wage.
Q1: What time period should be used for total wages?
A: Typically, the 52 weeks prior to the injury is used, but this may vary by jurisdiction. Consult your state's workers' compensation guidelines.
Q2: Are bonuses and overtime included in total wages?
A: Yes, most jurisdictions include all forms of compensation including regular wages, overtime, bonuses, and other earnings when calculating total wages.
Q3: What if the worker hasn't been employed for a full year?
A: Alternative calculation methods may apply for short-term employees. Some jurisdictions use a similar employee's wages or project annual earnings based on actual earnings period.
Q4: How does AWW affect workers' compensation benefits?
A: AWW directly determines the compensation rate, which is typically a percentage (often 66.67%) of the AWW for temporary total disability benefits.
Q5: Are there maximum AWW limits?
A: Yes, most states have maximum weekly benefit amounts that cap the compensation regardless of the calculated AWW.