If you are injured on the job and unable to work or limited in your ability to work, your ability to provide for your family should not suffer. Workers' compensation insurance is designed to pay you at a comparable rate to what you had been earning before your injury. The way workers' compensation is calculated is essentially based on two-thirds of your weekly earnings before your injury, but your weekly earnings encompass any overtime that you may have earned, any additional bonuses that you may have generated over the previous 52 weeks.
An average weekly wage is basically the most beneficial wage that you would have earned if you would have been able to continue working. That worker's compensation benefit as opposed to your wages at your place of employment is nontaxable. With that said, it's always important to talk to a lawyer, to make sure that the insurance company has, in fact, calculate your wages correctly and is, in fact, paying you what you are entitled to under the workers' compensation law. That's what we are here for, to help with those questions.