What is a workers' compensation settlement tax lien?

A workers’ compensation settlement tax lien is a lien that is placed on the settlement of an employee’s workers’ compensation claim. In the state of Florida, a workers’ compensation settlement tax lien is placed on the settlement proceeds to ensure that the employee’s share of any income taxes owed for the amount they receive is collected. This lien is placed by the Florida Department of Revenue and is calculated based on the employee’s estimated taxable income that will be earned from the workers’ compensation settlement. The lien must be paid before the employee receives any of the proceeds from the settlement. This ensures that the employee is not able to avoid the taxes they would otherwise owe on the settlement amount. A workers’ compensation settlement tax lien protects the interests of the employee, the Department of Revenue, and all other parties involved in the settlement.

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What is a workers' compensation settlement tax lien?

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