I am Self Employed. How is my Wage Loss Determined in my Personal Injury Claim?

At times, injuries and/or the medical appointments required to heal from the injuries, can cause a person to sustain a wage loss as part of their personal injury claim. A larger wage loss claim may exist when the injuries a person sustains does not allow them to return to their previous vocation. Not all wage loss claims are equal. This is especially true when a person is self-employed.

Often, proving lost wages for a self-employed person can be difficult. However, it can be done.

One way to prove that wages were lost by a self employed person is by comparing tax records from the years prior to the injury versus after the injury. If the claim is being negotiated prior to the filing of the most recent tax return, the prior tax records nonetheless provide some idea as to the loss a person is sustaining now. The IRS provides a list as to the type of documentation that is acceptable to prove income and sales. This list can help provide ideas to small business owners as to what documents they should be maintaining in their files and that would be useful to your personal injury attorney.

Additionally, any documentation regarding contracts that were cancelled and/or had to be sub-contracted out as a result of the injury could help document a wage loss for the self-employed person. If the business owner maintained a calendar of upcoming projects, this calendar can serve to help determine wage loss.

construction workers.jpgAt times, a business owner will pay a larger payroll out to employees during the time they are recuperating from injuries. If employees are handling work typically performed by the business owner, payroll records indicating the usual amounts paid out to employees versus the payroll records post injury may also help document the loss income a business owner has incurred.

To have a successful wage loss claim, it helps if a business owner has maintained documentation of their business dealings post-collision and pre-collision, file business and personal taxes annually and do not have ‘cash only’ business.

The Law Offices of Edward A. Smith has represented many business owners who have sustained substantial loss to their businesses. We have successfully obtained reimbursement for them. If you are looking for a personal injury attorney and are a business owner, please call our office (800) 404-5400 so that we can discuss your unique situation.

Photo Attribution: Bundesarchiv, Bild 183-P0619-0011 / CC-BY-SA [CC-BY-SA-3.0-de (http://creativecommons.org/licenses/by-sa/3.0/de/deed.en)], via Wikimedia Commons

Updated:

Client Reviews

  • Me and my wife; had a car accident. We were amazed how easy, professional, friendly attorney Ed Smith is along with his staff. Everybody is amazing. Thank you so much, we are very impressed!
    Sincerely,
    ★★★★★
  • Ed Smith and his office team took on a difficult personal injury case on my behalf and for the passenger in my car. Ed is a top- notch attorney. His staff couldn't have been more helpful and kind. No need to look elsewhere. I give Ed Smith my highest recommendation.
    ★★★★★
  • Ed and Robert have been taking great care of my husband and I for the past 5+ years. They are always there when you have a problem and a quick resolution! Even when the issues have nothing to do with them. They are willing to help ease the pain off your shoulders. They are as good as it gets! Thank you again for everything.
    ★★★★★
  • Very professional. Great team, staff and service all around. Mr Smith was very honest, straight forward with his advice. He gives the word "attorney" an honest reputation. I will seek his council anytime, and would recommend him at the drop of a dime.
    ★★★★★
  • I would highly recommend Ed Smith to any friends or family in need of a personal injury attorney. Ed, and his staff, are very caring on top of being very experienced in this field. The staff always keeps you informed of the status of your case and they are always easy to reach by phone.
    ★★★★★
  • Edward Smith law offices provide competent, thorough, and personable help for victims of personal injury. When you first meet the staff you know you contacted the right office. This law office treats clients like people. I recommend this office to anyone seeking representation regarding personal injury.
    ★★★★★