Here’s what to do next if you lose your job.
These are crazy times that we are living in as the current epidemic is shaking the world. We’ve now seen jobless claims top 30 million over the last six weeks — many of them due to the novel coronavirus. In case you’re keeping track, that’s more layoffs than jobs created since the Great Recession.
Perhaps you’re newly unemployed and asking, “What’s next?”
Most layoffs are temporary to “flatten the curve,” but that consolation may not reduce the initial stress that comes with unemployment. Until the job market regains steam, the CARES Act stimulus package and other steps can help.
There are steps you can take right away to make the best of your situation.
It’s a natural desire to be productive with your time. Not earning a steady income is financially and mentally stressful. Even if you have the benefit of knowing in advance about a job loss or when you’re getting called back, the “big day” is full of uncertainty.
To quote Charles Dickens from A Tale of Two Cities, “It was the best of times and the worst of times.”
Don’t let your upfront fears consume your self-confidence. Having a clear mind can make the transition easier. Losing your job is scary, but you can persevere.
You can apply for weekly unemployment benefits if your employer lays you off or furloughs you. However, you won’t qualify if you quit your job or your boss fires you.
It’s currently easier to qualify for unemployment insurance because of coronavirus measures. People who may not be eligible for benefits under normal conditions can receive aid thanks to the CARES Act relaxing the standard requirements.
Some of the qualifying coronavirus-related reasons to apply for unemployment include:
The CARES Act temporarily waives the minimum one-week waiting period to apply for benefits. Anyone can apply as soon as they lose their job.
You will need to apply for unemployment insurance directly through your state’s unemployment website. Many state unemployment websites are crashing because there are so many unemployment claims. Keep on trying until you can file your claim.
Enhanced Federal Unemployment Benefits
Most of the media is focusing on the stimulus check that the CARES Act is providing to many households. This one-time economic income payment is nice but $1,200 ($2,400 for joint taxpayers) only provides limited relief.
In addition to relaxing the qualifications, the CARES Act provides enhanced federal benefits.
Each state is responsible for distributing unemployment insurance. Most states pay a weekly benefit between $200 and $700—enough to buy the bare essentials.
Through July 31,2020, the CARES Act extends an additional $600 weekly federal benefit. Your state will automatically distribute through the federal Pandemic Unemployment Compensation (PUC) program. This benefit program is for those who file your income taxes with Form W-2.
The self-employed, independent contractors and those with a limited work history will receive the same $600 benefit through the Pandemic Unemployment Assistance (PUA) program.
