What is TTD in Workers Compensation?

What Counts as Temporary Total Disability?

As mentioned, temporary total disability refers to conditions that are temporary in nature but renders the injured unable to do any type of work. Since workers comp laws vary per state and the severity of injuries can vary for each person, only your treating doctor can determine whether or not your condition qualifies as TTD.

But as a general rule of thumb, it can only be considered a temporary total disability if:

• it’s severe enough to make any type of work virtually impossible
• there is an available cure for your condition
• you are expected to recover after proper medical treatments
• you can be retrained for another type of job (in case you can’t go back to your old job)

Some of the most common examples of temporary total disability are:

• burns
• severe cuts and lacerations
• head injuries
• tuberculosis
• temporary blindness
• back sprains, strains, and tears

Depending on the circumstances, post-traumatic stress disorder (PTSD) may also be considered as a temporary total disability.

How Much TTD Payment Can You Expect?

Workers comp laws vary per state. As such, computation for temporary total disability benefits also tends to vary. But in general, it will depend on your average weekly earnings from before your injury.

In Florida, TTD payments are 66.67% of your average weekly wage before you got injured. So if you are receiving $1,000 a week on average, you’re entitled to $666.70 weekly TTD payments. But the state imposes a maximum amount that differs every year. For 2021, the maximum compensation amount is $1,011. So even if you’re entitled to a TTD benefit of $2,000 a week, you’ll only receive the maximum amount. You can use this TTD benefit calculator to get an estimate of how much you’re entitled to.

Florida statutes also provided that you shall be paid TTD benefits equal to 80% of your average weekly wage if:

• you’ve lost an arm, leg, hand, or foot
• you’ve been rendered paraplegic, paraparetic, quadriplegic, or quadriparetic
• you’ve lost sight in both eyes

The statutes also provide that you will only be paid for the first seven days of your disability if your absence from work extends to 21 days or more. Aside from lost wages, your employer or insurance company should also pay for any related medical or treatment costs. Your first benefit check should arrive within 21 days after reporting your injury to your employer.

Are TTD Payments Taxed?

In general, workers’ comp benefits are not taxable in both state and federal levels. It doesn’t matter whether they’re permanent or temporary or partial or total. As long as they are part of your workers comp payment or settlement, you won’t have to pay any taxes. This is according to the IRS‘ pronouncement that states:

Amounts you receive as workers’ compensation for an occupational sickness or injury are fully exempt from tax if they’re paid under a workers’ compensation act or a statute in the nature of a workers’ compensation act.

However, if you are receiving Social Security Disability Benefits (SSDI) or Supplemental Security Income (SSI) on top of your worker’s comp benefits, then you may have to pay taxes on a portion of your workers’ comp.

To make sure that these benefits are not taken advantage of, the law sets a threshold on how much total benefits you can only receive. In Florida, your combined workers’ comp and social security disability benefits should not exceed 80% of your earnings before you got injured. If it does, the excess will be included in your taxable income. But in most cases, the amount is so negligible that it doesn’t really affect your total tax due.

When you return to work, your earnings are also taxable even if you continue to receive TTD benefits.

What is the Difference Between TTD and TPD?

As mentioned, TTD is for employees who cannot do any type of work. Temporary partial disability (TPD), on the other hand, is for injured workers who can still work but are earning less than their pre-injury wage.

For instance, a worker who underwent major surgery and has to stay in the hospital for weeks may be entitled to TTD benefits. But a worker who hurt his leg may still work in jobs that do not require moving or standing. Thus, they can only claim TPD benefits.

How Long Will You Receive TTD Payments?

TTD payments usually last until you return to work or reach maximum medical improvement (MMI). This is the point when you cannot get any better than you already are. In Florida, you used to only be able to receive temporary disability payments for up to 104 weeks but a 2016 ruling extended it to 260 weeks or 5 years. So even if you haven’t reached MMI after 104 weeks, as long as you’re not back at work, your TTD payments will not stop.

Aside from returning to work or reaching MMI, your TTD benefits will also stop if:

• you refuse to work even if the doctor says you’re fully recovered
• you refuse to work for reasons other than your injury
• you refuse a work offer even with an approved rehabilitation plan
• any other grounds for suspension or discontinuation of benefits as provided in the state’s workers comp law

What Happens When You Return to Work?

As mentioned, returning to work also means saying goodbye to your TTD benefit payments. It doesn’t matter whether you’re back at your old job or working on a new job, your TTD benefits will stop. But this isn’t always the case.

If you are returning to work with light-duty restrictions or are earning less than what you used to earn, your TTD payments may continue. Having light duty restrictions means that your employer should only put you in jobs that are not physically demanding. What counts as “physically demanding” usually varies depending on the nature of your injury. 

If there are no available light-duty tasks at your workplace, you can continue receiving your TTD benefits. Once a light-duty job becomes available and you go back to work, you may still be entitled to a portion of your workers’ comp benefits if your earnings are less than 80% of your income before your injury.