The current standard calculation for lost wages will now be set at 0.85. Board awards are not taxable. Therefore, the Board found the reduction reasonable as a labor equivalent taxation rate. The Board previously set the standard calculation at 0.667 or 0.80 for reimbursement of documented lost wages incurred as a direct result of a violent crime.
The Board formally adopted the standard of reducing lost wage awards by twenty (20) percent. The standard calculation is 0.80 for reimbursement of documented lost wages incurred as a direct result of a violent crime.
The Board reviewed current tax rates and concluded that the vast majority of claimants
fell within the 15% or lower tax bracket. Therefore the Board amends its policy to
reduce lost wage awards by fifteen (15) percent.