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Temporary total disability benefits are calculated by taking:

(A) Eighty percent (80%) of the employee's Average Weekly Wage (AWW).

(B) The average of the 13 weeks wages prior to, but not including, the week of injury.

(C) .6667 of the employee's pre-injury Average Weekly Wage (AWW).

(D) .6667 of the employee's take-home pay.

User Ivan Xiao
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Final answer:

Temporary total disability benefits are typically calculated as .6667 of the employee's pre-injury Average Weekly Wage (AWW), which is roughly two-thirds of the worker's average earnings (C). The calculation is part of workman's compensation insurance and varies by state laws. Funding for such programs comes from a federal tax on employers.

Step-by-step explanation:

Temporary total disability (TTD) benefits are often part of workman's compensation insurance programs, which provide financial assistance to employees who have suffered an injury on the job and are unable to work temporarily. These benefits typically compensate a worker for lost wages due to their inability to work.

Option (C), which calculates TTD benefits as .6667 of the employee's pre-injury Average Weekly Wage (AWW), is commonly used in many states. This figure represents approximately two-thirds of the employee's average wage prior to the injury. The specific percentage can vary by state law and may be subject to maximum and minimum limits.

Funding for Workman's Compensation and unemployment programs typically comes from a federal tax collected from employers. States have flexibility regarding the collection limits and the duration of benefits, with most limiting unemployment benefits to 26 weeks, though extensions are possible during periods of high unemployment.

The program's funding is a federal tax imposed on employers.

States manage these funds to pay benefits to qualifying workers.

Disability benefits under Social Security are separate and available to those with long-term incapacitation.

User Samarth Bhargava
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