This is why your work loss benefits may be less than you expected in Michigan.
The 15% is taken out because you would normally be paying taxes on your wages. The amount you get from the no-fault carrier is not taxable to you. If you can prove that you were in a tax bracket less than 15%, you would get your full wage minus the percentage tax bracket you were in.
Remember, your insurance company has the right to decide on its own whether you are disabled because of the accident. The insurance company may cut you off from wages and other benefits, such as medical coverage, even if your doctor believes you are still disabled. Many lawsuits arise between injured people and their insurance companies over whether a claimant is truly entitled to continuing insurance payments.
You should also keep in mind that there is a three year time limit on no-fault wage loss claims, and there is a monthly maximum you can receive, no matter how much you earn. Attorneys who work on auto accident cases will be able to tell you more about how these benefits and limitations work.
Source: MCL 500.3107(1)(b)