The TTD rate for a full-time employee is computed at 66.67% of the higher of the:
The regularly scheduled weekly hours of work are the number of hours scheduled per week as established by the employer for the class of employment. If the schedule of weekly hours varies or deviates by more than 5 hours for any week within the 13 week period prior to the injury, the regularly scheduled weekly hours must be set at a full-time schedule for that occupation. A full-time schedule is presumed to be 40 hours per week unless the employer or employee can establish that it is otherwise.
Not including overtime when it is part of the regular schedule; not including shift differential; not including all taxable earnings, such as incentive pay, bonuses and overtime in gross earnings; incorrectly counting “weeks worked/paid”; using weeks and wages after the date of the injury; and using wages earned from an employer other than the insured. A serious error is not documenting wages. The WKC-13A should report only confirmed, not estimated, wages.
There are numerous “exceptional employment” situations that may not follow the Two-Part Comparison.See: Determine Wages for
Employees in Exceptional Work Schedules or Receiving Exceptional Types of Compensation.
An employee is considered part-time if they are regularly scheduled or actually work 35 hours or less per week. To calculate the TTD rate of part-time employees, it would need to be determined if the employee 1) is part of class and 2) self-restricts to part time on the labor market. Once these two factors are determined, the same Two-Part Comparison listed above can be used to calculate wage.
The employee is considered part of class of all of the following are true:
If the employee is a part of class, the hours entered in Part 1 of the Two Part Comparison would be their regularly scheduled hours or expanded to the minimum of 24 hours.
If the employee is NOT a part of class, the hours entered in Part 1 of the Two Part Comparison would be expanded to full-time, 40 hours.
Applying the self-restriction option to a claim limits the TTD rate and TPD Wage for part-time employees. If the self-restriction option is applied to a claim, the wage would be based on the employee's actual earnings (hours worked per week would not be expanded). It also requires payment of TTD at 100% of the worker's regular schedule or average actual earnings (whichever is higher) rather than 66.67%.
To apply the self-restriction option, have the employee fill out the self-restriction form (WKC-12698-E) that may be downloaded from our web site.
The standard value for “meals” and “room” is set in Wis. Admin. Code DWD 80.29 and 272.; The value of all other items is set by common marketplace value to the employee. Meals received at a discount are not used as additions to cash wage. See ERD-9247-P; (Spanish ERD-9247-S-P) for Wisconsin Maximum Allowances for Board and Lodging.
Be sure the employer reports total tips separate from total gross. Then divide the total tips by the weeks worked for the tips to get the weekly tip average. The average tips per week then will be divided by actual hours worked to get the tip rate. The tip rate is added to the hourly rate when calculating wage and must equal no less than minimum wage. The weekly tip average is added to the gross earnings average. See ERD-9247-P; (Spanish ERD-9247-S-P) for complete Minimum Wage Rates chart.
Employer to determine value. Be sure to check if the housing is shared, e.g., shared with one other person, use half the value if the employer gives you the total value.
Need to know if any of the above (except tips) is continued during the disability. Those items continued by the employer through the disability period, and for which reimbursement is not expected, need not be added to the TTD wage for the period received. However, they are included in the PPD and death benefit rates. If discontinued during the disability period, the value must be refigured into the TTD rate (contact DWD).
If you would like more information regarding wage reporting, please see the WKC-13A FAQ and the Wage Rate Chart.
This brief summary was prepared for discussion only. Always refer to state statutes and administrative codes as they apply to specific situations.