Not unlike a personal injury settlement, a worker’s compensation settlement is often best paid through a structured settlement plan. Since 1997, the tax law related to worker’s compensation and structured settlements has allowed these payment types to be income tax-free.
With the help of the right professionals—such as those at American Settlement Corporation—setting up a worker’s compensation structured settlement is a reasonably straightforward process. An employer or its insurance company simply contacts a structured settlement specialist who then drafts a deal based on the particular situation, including the injured employee’s age, annual earnings at the time of the injury, and projected medical costs. If both the employer and the employee agree on the deal, the specialist then arranges the financing.