Just to clarify. TAW is temporary alternative work aka light duty. You should be doing light duty work (which can be anything that shouldn't hurt your existing injury) and you should receive your regular pay rate for your hours. You are still guaranteed your daily hours under TAW. This is regular income earned, you will be paid from UPS for the hours and pay taxes on that pay. If you go on worker's compensation, you make a percentage of your normal income, that is paid from liberty mutual. You do not have to pay taxes on worker's compensation income.