The employee earns $2000 per week, works six months per year and collects EDD benefits the rest of the year. He returns to work and is injured on his first day back. The correct total TD rate is?

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Multiple Choice

The employee earns $2000 per week, works six months per year and collects EDD benefits the rest of the year. He returns to work and is injured on his first day back. The correct total TD rate is?

Explanation:
Temporary disability benefits are calculated as two-thirds of the average weekly wage, but cannot exceed the state's maximum weekly TD rate. For a seasonal worker who earns 2000 per week for six months and nothing for the other six months, the annual average weekly wage is (2000 × 26 + 0 × 26) / 52 = 1000. So the baseline TD rate (two-thirds of average) is 666.67 per week when averaged over the year. However, during the season, two-thirds of the actual earnings would be 1333.33, which likely exceeds the maximum TD rate, so you use the maximum TD. Therefore the correct approach is max TD during the season and 666.67 out of season.

Temporary disability benefits are calculated as two-thirds of the average weekly wage, but cannot exceed the state's maximum weekly TD rate. For a seasonal worker who earns 2000 per week for six months and nothing for the other six months, the annual average weekly wage is (2000 × 26 + 0 × 26) / 52 = 1000. So the baseline TD rate (two-thirds of average) is 666.67 per week when averaged over the year. However, during the season, two-thirds of the actual earnings would be 1333.33, which likely exceeds the maximum TD rate, so you use the maximum TD. Therefore the correct approach is max TD during the season and 666.67 out of season.

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