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How to prove lost wages from an car accident while self-employed

On Behalf of | Apr 20, 2023 | Motor Vehicle Accidents |

People in Maryland depend on their automobiles to reach many places, including their jobs. Unfortunately, that situation changes after you get into an automobile accident. A car accident can damage a vehicle while injuring the person or people inside it.

Lost wages and self-employed individuals

The term “self-employed” is for someone typically working as a freelancer, contractor or a business owner. Someone working on behalf of a company, typically on a part or full-time basis, is an employee. Lost wages can also cover benefits that you lose as a result of a motor vehicle accident.

Proving lost wages

No matter whether you’re self-employed or work as an employee, you’ll need to provide proof that your accident caused you to lose wages.

Generally, you’ll need to provide documentation showing how much money you earn, typically a 1099 tax form from the previous year. Providing this information from past business-related invoices or receipts might also be useful.

Medical documents, such as disability slips or notes from doctors, will detail how long yous should be out of work, so this will also be required to document lost earnings. It’s helpful to include documentation on benefits, commissions and anything else that costs you money during this time.

If you’re self-employed but work for another company or multiple companies–say as a consultant–it’s also good to get documentation from business owners that details lost wages, benefits or other compensation.

After providing the previously mentioned information, a court can begin looking at the severity of damages and potential compensation.

With self-employed workers sometimes having irregular work histories, they might have to dig deep into their work-related files to track compensation information. However, with more people working remotely and earning money from nontraditional sources, this type of claim will likely become more common.