July 2020 Client Profile

Nicole has been furloughed from her job at a major hotel chain. Her temporary suspension is scheduled to last through August at least. How does this affect her income and benefits?

Nicole can apply for unemployment benefits. Thanks to the CARES Act, she will receive a $600 weekly benefit for all weeks of unemployment between April 5, 2020 and July 31, 2020, in addition to the amount she is entitled to receive under state law.

As a furloughed employee, Nicole may or may not still be eligible for her employer-sponsored benefits, including health insurance. No general rules apply to every situation, as all circumstances are somewhat unique. She should reach out to her human resources department to determine if any changes have been made to her employee benefits.

To help manage her money until then, if Nicole has debt, such as student loans or a mortgage, she should consider the debt forbearance programs made possible by the CARES Act, which suspends payments between March 13, 2020, through Sept. 30, 2020.

Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.