How To Survive A Layoff Or Furlough During The COVID-19 Pandemic [INFOGRAPHIC]

How To Survive A Layoff Or Furlough During The COVID-19 Pandemic

22 million Americans — 13.5% of the workforce — filed an initial unemployment claim in the 4 weeks ending April 15th, 2020

Unemployment Insurance — Who Qualifies?

• Layoff vs. Furlough
• Layoff: Permanent separation from an employer, with the possibility to be recalled to work
• Laid-off employees are no longer listed on the company payroll and lose all employer-provided benefits
• Furlough: Temporary, mandatory unpaid leave — length may depend on the situation
• Furloughed employees remain on the company payroll but don’t receive paychecks, they may retain some benefits
• Both furlough and laid-off employees are eligible for unemployment benefits
• Partial Loss Of Income
  • Reduced Hours: If your employer cuts your hours, and you’re available to work more, you may qualify for partial unemployment payments
  • Multiple Jobs: If you have multiple jobs and are furloughed or laid off from one, you likely qualify for partial unemployment benefits

The CARES Act — Coronavirus Aid, Relief, and Economic Security Act — a $2.2 trillion stimulus signed into law on March 27, 2020 provides a broad range of relief and stimulus programs for individuals and businesses.

• Expanding Unemployment During COVID-19 – During the COVID-19 pandemic, unemployment benefits have been extended to many who wouldn’t otherwise qualify.
• Nontraditional Workers: Freelancers, gig workers, and self-employed workers
• Workers Who Quit: If you quit your job for reasons related to the pandemic
• Recent Hires: If you were scheduled to begin work but weren’t able to do so
• Loss Of Head Of Household: If the primary breadwinner for your family dies due to COVID-19, you may be eligible for unemployment
• Caregivers: Staying home to care for family members, including
  • Children who are out of school
  • Elderly family who lost access to adult daycare
  • Family members who are sick with COVID-19

Nearly half of employers* say they will pay at least some of their employees who are unable to work — But many Americans will be relying on unemployment to make it through.

How To Apply For Benefits

• Applying For Unemployment
  • Apply online using your state’s application system
  • If you live and work in different states, apply in the state where you work
  • Many states have waived the 1-2 week waiting period on COVID-19 related applications
  • What To Expect
    • Unemployment usually pays about half of previous income each week — and lasts 12-30 weeks*
    • BUT, the Cares Act added an additional $600 per week until July 31st
      • AND 13 additional weeks of payments after state benefits run out

Financial Tips For Surviving A Furlough Or Layoff

• Assess Your Situation & Make A Plan
  • List your current income sources, savings, and liquid assets
  • Create a new budget that prioritizes your most critical expenses
  • Reduce or eliminate non-essential spending

Try apps like Truebill or Trim to identify and eliminate unwanted subscriptions.

• Use Your Stimulus Check Wisely
  • Cover basic necessities and bills
  • Bolster your emergency fund
  • Pay down high interest debt
• Know Your Options
• • • The CARES Act offers relief within Federally-backed programs and encourages private companies to do the same
      • Student loans — Set interest rates to zero and suspended payments through September 30, 2020. Visit ed.gov to learn more
        • For private and other student loans, contact your loan service provider to explore what options may be available
      • Mortgages — Suspended foreclosures, waived late fees, and allows homeowners to delay payments
        • Including loans held by Fannie Mae and Freddie Mac, and those backed by FHA, VSA, and USDA programs
      • Renters — Suspended evictions and waived late fees until July 25, 2020
        • Includes residents in public housing and properties where the landlord holds a federally-backed loan
      • Some cities and states have implemented local relief measures, including
        • Halting debt collection activities
        • Suspending foreclosures and evictions
        • Preventing utilities and telecoms from stopping service

Watch the fine print — Forbearance may be granted by your mortgage lender, but those skipped payments may be due as a lump sum later, plus interest and fees, and you may still need to pay mortgage escrow payments toward taxes and insurance.

• If you’re struggling to pay your bills, call your service provider or lender before you miss a payment to discuss your options
  • Many companies — including telecoms, utilities, credit card issuers, and auto lenders — have promised relief options, including
    • Waiving fees for late payments
    • Suspending service disconnects
    • Lower monthly payments
  • Check out Credit Karma for a list of resources and relief options for major lenders

Late payments lower your credit scores — BUT, many companies have stopped reporting late payments to credit bureaus during the pandemic.

• Explore Opportunities For Additional Income

If you’re collecting unemployment, working will reduce your benefit — But, it may extend the number of weeks you’ll receive payments.

• Many essential businesses are still hiring
  • Grocery stores, retail warehouses, food delivery
• Remote freelancing and gig work continue to thrive
  • Upwork, Freelancer, Guru
• Online learning and tutoring are in high demand
  • VIPKid, TutorMe, Chegg
• Sell items you no longer need for extra cash
  • Decluttr, LetGo, BuybackBoss

Individuals affected by COVID-19 can withdraw up to $100,000 from qualifying retirement plans without tax penalties.

Take the stress out of navigating unemployment on your own — Feel more confident and in control of your financial future by speaking with a fee-based financial advisor.

Sources:
https://www.cnn.com/2020/04/16/economy/unemployment-benefits-coronavirus/index.html
https://www-finivi.com/covid-19/#section-6
https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/cms_015065.aspx
https://www.employmentlawfirms.com/Eligible-for-Partial-Unemployment.cfm
https://www.fool.com/personal-finance/2020/04/06/covid-19-expanded-unemployment-whos-in-and-whos-ou.aspx
https://www.cbpp.org/research/economy/cares-act-includes-essential-measures-to-respond-to-public-health-economic-crises
https://www–dailynews.com/2020/03/12/if-coronavirus-keeps-me-home-from-work-will-i-get-paid/
https://www–nationalpartnership.org/our-work/resources/economic-justice/paid-sick-days/current-paid-sick-days-laws . pdf
https://www–thebalancecareers.com/can-i-collect-unemployment-if-i-work-part-time-2064172
http://www.truebill.com/
http://www.asktrim.com/
https://www.fool.com/investing/2020/04/16/cares-act-2020-retirement-fund-access-and-student.aspx
https://www.cnbc.com/2020/04/07/lenders-give-mortgage-relief-amid-pandemic-ask-these-questions-first.html
https://www.investopedia.com/renters-how-to-get-covid-19-rent-relief-4800858
https://www-creditkarma.com/advice/i/coronavirus-us-state-local-relief-measures/
https://www-creditkarma.com/advice/i/coronavirus-credit-card-relief-options/
https://www.experian.com/blogs/ask-experian/coronavirus-and-your-credit-report/
https://www.reuters.com/article/us-health-coronavirus-philippines-educat/online-tutors-boosting-incomes-as-demand-surges-due-to-coronavirus-lockdowns-idUSKBN21A0YC
https://www.vipkid.com/teach
https://www.chegg.com/
https://www.fool.com/investing/2020/04/16/cares-act-2020-retirement-fund-access-and-student.aspx

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