Are You Self-Employed And Wondering How to Prove Lost Wages? Read This!
Experiencing a car accident can be highly devastating for the victims. It can result in numerous losses, including loss of employment and wages. The victims of car crashes are entitled to compensation for their lost wages and income. Even if you are a self-employed worker, you are legally permitted to seek compensation for loss of income on business opportunities due to the accident. However, the procedure of getting coverage for losses is not the same for self-employed workers as it is for employees. Cimarron Ridge Legal Group assists all self-employed victims in navigating the legal process.
Self-Employed vs. Employee -The Difference.
While filing a claim for lost wages, the process is different for a normal employee and a self-employed individual. Freelancers, independent contractors, and sole proprietors are considered self-employed. On the contrary, the employees are under the dictation of their employers.
What Are Lost Wages for the Self-Employed?
Terminologies like lost wages, lost income, lost compensation, and loss of benefits imply the earnings and profits that could have been made if the victim was not injured.
These losses include recent earnings, upcoming contracts, and loss of business opportunities and company goodwill. Loss of wages is often confused with loss of earning capacity. However, it is a different type of damage, including loss of potential future earnings.
How to prove lost wages and income?
Proving a loss of income is more complicated for self-employed workers than for regular employees. If the victim does not have credible proof of loss of wages, they will not be able to gain any compensation for the damages. Therefore it is crucial to provide the insurer with all the documents and evidence stating the impact of the injury to prove the loss of age in income, including the following documents and evidence in your claim.
Proof of lost income and opportunity
The victims must display how much they could have earned from the day of the accident to the time taken to recover fully. The victims must submit their 1099 forms, tax returns from the previous year, correspondence, business invoices, and applicable receipts.
Letter from your employer
Get a letter from your work office that contains your identification information, employment status, compensation, and the number of work hours missed because of the accident and recovery.
It is crucial to display medical records showing your injury’s condition. The records can be prescriptions of a medical health provider or disability slips that recommends taking time off from work for recovery.