A bartender with earnings of $600 per week, averages tips of $250, and also receives one free meal per day from the employer. The employer's cost of the meal is $15. If the employee paid for the meal it would cost $125 per week. What is the employee's TTD rate?

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Multiple Choice

A bartender with earnings of $600 per week, averages tips of $250, and also receives one free meal per day from the employer. The employer's cost of the meal is $15. If the employee paid for the meal it would cost $125 per week. What is the employee's TTD rate?

Explanation:
Temporary Total Disability benefits are calculated as 2/3 of the employee’s Average Weekly Wage (AWW). In California, AWW includes all compensation the employee receives, such as base wages, tips, and the reasonable value of meals furnished by the employer. The value of the meal to the employee is the amount they would pay if they were not provided the meal, which is 125 per week. The employer’s cost of the meal (15) is not used for AWW. So, AWW = 600 + 250 + 125 = 975. The TTD rate = 2/3 of 975 = 650.

Temporary Total Disability benefits are calculated as 2/3 of the employee’s Average Weekly Wage (AWW). In California, AWW includes all compensation the employee receives, such as base wages, tips, and the reasonable value of meals furnished by the employer. The value of the meal to the employee is the amount they would pay if they were not provided the meal, which is 125 per week. The employer’s cost of the meal (15) is not used for AWW.

So, AWW = 600 + 250 + 125 = 975. The TTD rate = 2/3 of 975 = 650.

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