Have You Just Lost Your Job? Here's How to Get Financial Assistance

• Author: Jeffrey Simmons
• Posted: 2024-06-29

If you're one of the workers who recently lost their jobs, you have to look for another money-making venture. It will prevent you from facing financial challenges that might affect you psychologically. However, that might be challenging because many employees might not hire you because of the current economic situation. Starting a business might also not be possible, considering that you require capital and some money for different services associated with starting a business. Luckily, you can apply for government benefits.

Who is Eligible to Get Government Benefits?

You can get financial assistance if you have lost your job through a natural playoff process. However, if your employer fired you because of misconduct or you resigned voluntarily, applying for the program might be a waste of time. But, you have a higher chance of getting the benefits because Congress amended the unemployment benefits laws. They took the measures to accommodate more workers after many employers started laying off workers when the coronavirus disrupted the economy.

You can now apply for unemployment benefits if your boss has permanently or temporarily laid you off due to coronavirus measures. The laws also allow you to apply for financial assistance if you work for fewer hours than before the current pandemic started. You can also enjoy the privileges if your business is not earning you enough money.

However, each state has distinct rules that every applicant must meet to get financial assistance. Besides, different governments keep amending their laws. For example, some states prohibit people from qualifying for social security payments if they receive other severance payments from their former employees. Therefore, it is advisable to ensure that you meet the current regulations before applying for financial assistance.

The Application Procedure

After confirming that you qualify to get unemployment benefits in the state where you worked, take the following measures.

Contact the Unemployment Insurance Department Immediately After Losing Your Job

The number of unemployment benefits applicants has increased significantly in the last few months. That has increased the relevant department's time to review and approve applications. Therefore, if you want to start receiving financial assistance as soon as possible, contact the unemployment insurance immediately after losing your job. Ask the agents the application procedure to follow. They will advise you whether to use the phone or apply online.

Then ask the representatives how long the process will take. It will enable you to budget for the money you have before receiving your first payment. For example, it only took two to three weeks to receive the first payment after a successful application. However, the process might take longer depending on the number of applicants. In addition, most state unemployment offices are receiving many applicants, making it challenging to go through all the applications within 21 days. Therefore, the information you get will let you know how to manage your money to avoid running out of cash before your first payment appears.

Get All the Documents You Require Before Starting the Application Process

Your application process might take longer if you don't have all the relevant documents before starting the application process. The representative processing your request will only start the procedure after you avail everything they want. Therefore, it might be advisable to adequately prepare for the claim to enable you to start receiving your payment within the shortest time possible.

Some of the documents you need include your social security number and personal documents to verify your identity. You must also supply sufficient information about your previous job. That includes your alien registration number if you're not a U.S. citizen, but you're working in the country legally. Some states also request severance documents that show the payment applicants receive from their former employer. Please find the documents your state department requires and have them ready when you plan to start the application procedure.

Prepare to Pay Tax for the Benefits You Receive

The government recognizes unemployment benefits as a form of payment. Therefore, the federal and state governments will be taxing the payment you receive. However, the deductions will be slightly lower than what other people pay. Therefore, it is advisable to contact the relevant departments for guidance on how to handle the tax break and how to claim it.

Winding Up

If your employer has permanently or temporarily laid you off, it might be advisable to apply for retirement benefits. First, however, go through the information above. It will enable you to know the application requirements. It will also help you make informed decisions when applying for financial assistance to enable you to start receiving your payment as soon as possible.