Michigan Administrative Code › Department - Labor and Economic Opportunity › Workers Compensation Agency › Workers' Compensation Agency - General Rules › Part 4 - MISCELLANEOUS › Section R. 408.48 - Compensation payments; calculation; payment

Current through Vol. 24-12, July 15, 2024
Rule 18.
(1)
				  Pursuant to section 313(1) of the act, MCL 418.313, the calculation of federal
				  income tax, federal insurance contribution act tax, and state income tax is
				  based on the federal income tax schedule, federal insurance contribution act
				  tax, and state income tax rate in effect on the applicable July 1 for which the
				  after-tax weekly wage is determined. The state law in effect on the applicable
				  July 1 is conclusive in the determination of the after-tax weekly wage for that
				  calendar year.
(2) Weekly payments
				  shall be made payable by check and mailed or electronically transferred
				  directly to the injured employee or the injured employee's dependent, pursuant
				  to subrule (3) of this rule. When the claimant is represented by counsel, the
				  accrued compensation must be made payable by check to the person or persons
				  entitled to compensation and mailed to the attorney representing the person or
				  persons.
(3) Weekly compensation
				  payments may be made by an electronic transfer when both of the following have
				  occurred:
(a) The claimant consents to and
				  authorizes in writing the use of electronic transfer payments. This
				  authorization is on a claim-by-claim basis, and must include acknowledgement by
				  the claimant that any amount received through electronic transfer into the
				  claimant's account or the account of the claimant's dependent at a financial
				  institution may be subject to attachment or garnishment.
(b) The electronic transfer is made by 1 of
				  the following methods:
(i) Direct deposit or
				  electronic transfer to the claimant's account or the account of the claimant's
				  dependent at a financial institution.
(ii) Issuance of a debit card to the claimant
				  or the claimant's dependent provided that the financial institution complies
				  with all of the following:
(A) Allows the
				  claimant to receive immediate payment in full at no charge.
(B) Allows at least 1 additional free
				  transaction per pay period for any amount up to the balance accessible through
				  the card.
(C) Fully and prominently
				  discloses any fees and charges.
(D)
				  Prohibits changes in fees or terms of services, as specified in
				  subrule(3)(b)(ii)(F) of this rule to subrule (3)(b)(ii)(G) of this rule. Any
				  other changes to the fees or terms of service may occur when the claimant has
				  received a written notice of these fees at least 21 days prior to the change
				  and the claimant has consented in writing to the change.
(E) Provides a method for the claimant to
				  make an unlimited number of balance inquiries electronically or by telephone
				  and without charge.
(F) Prohibits a
				  link to any form of credit, including a loan against future payments or a cash
				  advance on future payments.
(G)
				  Ensures that the debit card is negotiable at locations easily and readily
				  accessible to the claimant.
(iii) Any other form of payments approved in
				  advance by the director.