Video: Workers' Compensation Act

In this lesson, Nick Palazzolo, CPA, unpacks the nuts and bolts of the Workers' Compensation Act, clarifying how it serves as a crucial safety net for employees who suffer work-related injuries or diseases. Focusing on the mandatory nature of this no-fault insurance program, he delves into the breadth of coverage extended to employees, which includes medical costs and wage replacement, regardless of job type or employment duration. Nick highlights that the benefits provided do not equate to full pay, are contingent on state regulations, and can take various forms, such as lump-sum payouts. Moreover, he explains that while work-related injuries are covered, intentional self-inflicted injuries are not, noting employees can collect benefits for employer negligence. Nick also discusses employers’ strict liability in work-related incidents and the tax implications of workers' compensation expenses, further emphasizing the importance of understanding these laws beyond exam requirements, especially for those considering starting a business.