Car accidents are like getting a sprained ankle. Neither are pleasant and people try their best to avoid being involved in either, however life happens. Car accidents are much more common than you may think and are almost a ‘necessary part of life’ for that reason. If you have ever been involved in a car accident and have lost income and wages because of bodily injuries sustained from it, you need to know how to calculate this lost money. A personal injury lawyer would inform you how to do this and so would this article.
Prove that your lost income by car accident
Your personal injury lawyer in Davis will tell you that you will need to prove that your lost income/wages was/were directly caused by the car accident. You also need to prove that you would have earning capacity if you hadn’t been staying at home recuperating. Some of the documents you will need to include in your personal injury lawsuit to prove loss of income/wages include:
● Official medical documentation from a licensed doctor that states and provides evidence that you are physically not able to work because of your injuries.
● Your latest tax returns
● Your last W-2 pay stub
● A formal letter from your employer that shows evidence of your current wages and employment
How you calculate lost income/wages
Your lawyer will use a certain formula to calculate the total amount of income/wages you have lost because of your accident. If you are an hourly employee, your wage rate per hour will be multiplied by the number of hours of work you are expected to or have/will miss. If you are a salaried employee, your annual salary will be divided by 2080. This number is the total number of work hours in a year. You will arrive at a number which is your approximate hourly salary. Multiplying this rate by the total number of hours of work you have missed will give you an approximation of your total lost income.
Lost income/wages is difficult enough if you are unable to work for only a few days or weeks because you will likely be able to use personal funds to cover extra expenses and regular expenses and bills. However, missing several weeks or months of work could force you into bankruptcy. This is why you need to calculate the amount of income/wages you have lost whenever you get into a car accident.
The legal route is your best option
Hiring a personal injury lawyer is the best action to take when involved in a serious car accident. This professional will help you calculate the total amount of income/wages you have foregone if you are self-employed, an hourly, or a salaried employee!