When determining a TD payment for a late payment, which rate should be used?

When determining a TD payment for a late payment, which rate should be used?

• A. Maximum Rate for the Year of Injury
• B. Rate on the Date of Injury
• C. Rate on the Date of Payment
• D. TD Computed by Average

Answer: (C)

The amount for a late TD payment is determined using the rate in effect on the date the payment is actually made. California updates TD rates annually (with set maximum and minimum weekly amounts), so using the rate on the payment date ensures the late payment reflects the current rules. Using the date of injury would ignore changes in rates over time, and an average rate isn’t how these calculations are done. If the payment is late, apply whatever rate is in effect when you issue the payment, then calculate the TD amount accordingly.

The amount for a late TD payment is determined using the rate in effect on the date the payment is actually made. California updates TD rates annually (with set maximum and minimum weekly amounts), so using the rate on the payment date ensures the late payment reflects the current rules. Using the date of injury would ignore changes in rates over time, and an average rate isn’t how these calculations are done. If the payment is late, apply whatever rate is in effect when you issue the payment, then calculate the TD amount accordingly.