3 Ways to Prepare for Extended Unemployment Benefits Expiring

Tips employers can share with their furloughed or laid-off employees

Did you know that the $600 extended unemployment benefits are expiring at the end of the month*?

That means if your employees are currently furloughed or were laid off as a result of the COVID-19 pandemic, they will no longer receive an additional $600 in unemployment benefits from the federal government.

Barring any last-minute intervention from Congress, the loss of these extra funds means many will struggle to pay essential bills — like rent and utilities, struggle with regular household purchases such as groceries, and likely rack up additional credit card debt until they find a new job or return to work (if they have access to credit).

And with nearly 20 million Americans out of work, they’re not alone.

What can you do to help your employees (and former employees)?

Here are a few suggestions you can easily share:

1. Maximize your last unemployment payouts by removing withholdings. If you’re having taxes withheld from your last unemployment payouts, waive the option to have money withheld so that your last few checks come in as large as possible. The tax consequences for filing year 2020 (due in 2021) can always be planned for, but there’s a storm coming, and having cash on-hand is worth much more today than it likely will be by April of next year.
2. Brace for the worst-case scenario. Hopefully, you won’t have to operationalize this plan, but start to consider which bills you will prioritize if you’re short on income. Identify any social resources you can draw on that can provide some cash in a pinch or help reduce your expenses by providing support in other ways (e.g. local food banks or pantries).
3. Sign up for a session with a TrustPlus financial coach. TrustPlus coaches are experienced in helping workers develop a budget based on their financial priorities and available income. They can also help identify additional strategies and resources to make ends meet. The best part is it’s entirely free. Just text RELIEF to 646–349–5959 to sign up.

These are challenging times for all of us, but TrustPlus is here to help you and your employees get through it together.

• July 25th for most states except New York, which expires on July 26th

TrustPlus is now offering our financial coaching services for free for the rest of the year to small businesses and their workers, as well as providing critical resources to protect workers and families impacted financially by COVID-19. Learn more about our relief efforts.