The Trump administration is preparing for a layoff for government shutdown
The White House is asking federal agencies to prepare plans for mass shootings if the government is partially shut down next week, and the latest clash in the high-stakes conflict between President Donald Trump and Congressional Democrats partially shut down.
A government shutdown means that hundreds of thousands of non-essential federal workers are not reporting their jobs. Or receive a reward.
Their final paycheck is paid according to the usual payment schedule, but only for the hours they worked before they were bored. Once Congress passes funds to fulfill the agency’s regular business, workers should be able to return to work and receive payments as usual. But when that might be the case, everyone guesses.
That uncertainty comes when many Americans’ budgets may already be highlighted from years of growth, slower economics and perhaps more tariffs. So what should workers do in the meantime and what can they expect?
Below are some answers to frequently asked questions about what a determined worker can expect, according to the Human Resources Administration (OPM).
Can Furloughed workers claim unemployment insurance?
Yes, Furloughed workers can apply for unemployment insurance (UI) benefits in most states to help close the gap until work resumes.
According to the OPM, requirements vary between countries, with some requiring a one-week waiting period before someone qualifies for payment. Check the Unemployment Benefits Finder’s Department of Labor website | careerOnestop on how to submit a UI in your state.
Essential full-time workers can face more difficult situations. They have to continue working without wages, and usually they are not eligible to collect unemployment benefits. They must wait for the government to resume and get paid to receive retroactive pay for their time.
How much is the weekly unemployment insurance benefits?
Benefits vary by state, but are usually based on a percentage of individual revenue over the last 52 weeks, according to the Department of Labor.
Most states pay benefits up to 26 weeks. Benefits are subject to federal income tax and must be reported on your federal income tax return. The state’s unemployment insurance department may choose to withhold tax.
Most states also tax UI benefits. San Francisco Certified Public Accountant Richard Pont said he exempts all unemployment benefits in six states (Alabama, California, Montana, New Jersey, New Jersey, Pennsylvania and Virginia), while Indiana and Wisconsin exempt partial exemptions.
Be careful when collecting unemployment insurance
Once the government reopens and returns to work, you will need to receive a retroactive salary for the shutdown period.
Because you cannot be paid twice at the same time, you must repay all unemployment compensation you receive to the state under that rule. You are responsible for contacting your state’s Department of Labor and making repayment arrangements with the appropriate unemployment office. You may need to pay the full repayment on a specific date or establish a payment plan with the state labor department.
If overpayment is not addressed, the state can gather through a variety of means, such as adorning future unemployment benefits, receiving future state or federal tax refunds, or making money from wages.
Will health insurance continue?
Yes, Workers will continue to be the Federal Employee Health Benefits (FEHB) program, a program that includes health, vision, dental and other benefits. Coverage will continue as normal, even if the agency does not pay premiums on time due to the closure.
Premium subscribers’ share accumulates and is withheld from their pay when they resume payments.
However, if an employee purchases eligible healthcare items or services during Furlough, they cannot be refunded from the flexible spending account until the worker returns to payroll status and is able to make a payroll deduction.
Similarly, coverage from the federal long-term care insurance program will continue, but claims will not be refunded to the registrant until all previous premiums have been paid.
Can employees do other jobs during Farrow?
Since you are still considered a federal employee of Furlough, any job must meet the standards of federal ethical conduct and regulations.
Additionally, there may be specific laws to comply with certain laws prohibiting certain external activities, as well as agency-specific supplementary rules, so you should check them before doing another job.
The same applies to important workers who want to do paid work to help them through the period without pay or unemployment benefits.
What other financial support is available?
- Thrift Savings Plan (TSP) loans are available along with regular fees and interest rates. TSP is a defined contract retirement savings and investment plan for federal government employees and military personnel. The latest information and rules can be found on the TSP website.
- Employee Assistance Program (EAP) can provide confidential counseling and coaching with experienced, licensed counselors, including legal and financial consultations. Workers can find more information about EAPS on the OPM website.
How many workers are affected?
With none of the 12 spending bills approved, the closure is wider and more extensive than the partial shutdown that began in December 2018, when Congress enacted five of the 12 spending bills.
Instead, the shutdown rivals the 2.1 million non-fatal federal employees that were discarded in 2013, which roughly 850,000 were discarded.
Medora Lee is a money, market and personal finance reporter for USA Today. You can contact her at mjlee@usatoday.com and subscribe to our free daily money newsletter for personal finance tips and business news every Monday to Friday morning.
