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Category: Unemployment

  • Government To Mail Out $1,200 Checks To Most Americans; Unemployment Expansion #Stimulus

    The US Senate agreed to a bipartisan $2 trillion stimulus deal. It’s expected to eventually get through the House and be enacted in coming days.

    $1,200 Checks

    The part that people are most interested in that the government will mailing out checks of $1,200 to most Americans.

    • Each individual (non-dependent) gets $1,200; couples get $2,400 (total); plus $500 per child. For example, a couple with two children will get a $3,400 check in the mail.
    • Even those who don’t make money and those on Social Security will get these checks.
    • The only exception is those who earn more than $99,000 per year ($198,000 for a couple) who will not get anything.
    • There’s a phase-out from $75,000 – $99,999 ($150,000 – $198,000 for couples) where you’ll get a smaller check.
    • Payment is based on your prior tax return (2018 or 2019), but if you make too much in 2020 they money will be clawed back, I believe.

    Unemployment Benefits

    Another big component is the expansion of unemployment benefits. The increased benefits include:

    • Provides enhanced unemployment benefits for 4 months. This increases your unemployment check by $600/week, on top of what the state regularly gives, for 4 months.
    • Extends unemployment 13 weeks longer than usual rules. Regular is 26 weeks, I think, so now it would be 39 weeks. (This kicks in back from January 27.)
    • Extends unemployment to self-employed workers as well. That would include gig workers like Uber drivers.
    • Extends unemployment to furloughed employees as well. The added goal here is that businesses should not fire employees, instead leave them on as furloughed.

    Small Business Loans

    This fund is for loans of up to $10M to companies of 500 employees or fewer. Businesses who pledge to keep their workers can take a loan from the government, with the eventual forgiveness of the loan if they continue to pay their employees. I’m sketchy on the details here, but it sounds like you can get forgiveness on the loan for 8 weeks worth of payroll, mortgage interest, and rent costs.

    $2T List

    Here’s a partial break-down of the $2 trillion, as best as I could find:

    1. $250B for direct payments/checks to individuals and families. (see above)
    2. $367B for small business loans. (see above)
    3. $250B to boost unemployment insurance benefits. (see above)
    4. $500B in loans for distressed companies. $75B of this is earmarked for airlines and travel.
    5. $130B in funding for hospitals and medical equipment.
    6. $150B in funding for state and local governments.

    Taxes

    • Payroll taxes for 2020 can be deferred.
    • When are taxes due in 2020? IRS tax–filing extension explained. The IRS says individuals and businesses can delay filing and paying federal tax bills for 90 days, to July 15 from April 15, as part of an emergency relief plan amid the coronavirus pandemic.

  • Coping with a Layoff or Firing

    You’ve been handed your pink slip, encouraged to retire early, or offered a severance package to resign. Either way, you are now out of a job. This is a scary proposition for many people, especially in an economy where finding another job can be quite a challenge. Most terminations at this point are not about employee performance, but simply about money.

    Get organized. First, apply for unemployment. This should be your first stop, as it may take several weeks to process your application. In many states, you can apply online at any time around the clock.

    Look at any other sources of household income. Make a budget and assess the shortfalls. Make cutbacks now, even if you have substantial savings. This is the time to reduce entertainment expenses, dining out and other costs. If possible, reduce your cell phone bills, cable costs and other bills. Consider whether you may need to put your home on the market and downsize to a small apartment or sell a vehicle. Tighten your belt and cut costs brutally at this stage to make your savings last a bit longer.

    While your employer will probably offer COBRA for your health insurance coverage, you may want to opt for a lower cost high deductible plan while you are unemployed. In many states, you may be able to seek state health insurance for your children. Contact your local Department of Family Services for application assistance. You may find that you qualify for child care assistance, food stamps or additional aid.

    Brush up your resume. Find out if your former employer will offer a good reference and be sure that you have contact information for previous managers or co-workers. Contact those you know in the field and be sure that they know you are looking and interested should a position open up. Today, social networking online is also a valuable job search tool. Be sure that all of your social networking accounts present you in a favorable and professional light. Put your resume up at online job search sites as well.

    Explore the possibilities. Do you have skills you can use in a freelance or contract capacity? Financial aid may allow you to return to school or you may find that there are job re-training options available in your community.