What is the difference between Social Security disability and workers’ compensation?
Social Security Disability (SSD) and Workers’ Compensation (WC) are two types of benefits that are designed to help those who are unable to work due to an injury or illness. However, the two types of benefits are often confused. The key difference is that SSD is a form of insurance that is funded by the Social Security tax paid by the worker. WC is a form of insurance that is funded by employers and is intended to provide benefits to employees who are injured on the job. SSD provides benefits to individuals who are unable to work due to a physical or mental disability, and is based on the earnings of the individual over their lifetime. WC provides benefits to those who are injured on the job, as well as their families, regardless of their employment history. SSDI also pays benefits to family members of the disabled person while WC only pays benefits to the injured person. In addition, SSD is paid regardless of who was responsible for the disability while WC is paid only if the employer is at fault. This can make a huge difference, as the amount of benefits one can receive from either form of insurance can be vastly different. In short, SSD is an insurance program funded by the Social Security tax that provides benefits to individuals disabled by a physical or mental disability. WC is a form of insurance funded by employers that provides benefits to those injured on the job, and is usually paid only if the employer is at fault.
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