Which benefit should not be considered when calculating average weekly earnings?

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Multiple Choice

Which benefit should not be considered when calculating average weekly earnings?

Explanation:
Average weekly earnings are based on the worker’s compensation for the work actually performed during the relevant period. This includes wages, overtime, and tips because those are payments for services rendered. Employer-provided medical benefits are not included since they are fringe benefits, not earnings for labor. For example, if someone earns $600 in wages, $50 in overtime, and $10 in tips in a week, the AWE would be $660; the medical benefits do not enter into that calculation. Therefore, medical benefits should not be considered when calculating average weekly earnings.

Average weekly earnings are based on the worker’s compensation for the work actually performed during the relevant period. This includes wages, overtime, and tips because those are payments for services rendered. Employer-provided medical benefits are not included since they are fringe benefits, not earnings for labor. For example, if someone earns $600 in wages, $50 in overtime, and $10 in tips in a week, the AWE would be $660; the medical benefits do not enter into that calculation. Therefore, medical benefits should not be considered when calculating average weekly earnings.

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