You could be the greatest, most productive employee in the history of your company, but layoffs happen. If your business has cut you from its payroll to save money or otherwise “restructure,” you’re probably in panic mode. There’s no way to sugarcoat your feelings, either. Losing your job is bound to bring up strong emotions like fear, anger and even depression — even if it’s not your fault.
Take a deep breath. There are important steps to take when you’re handed that pink slip, and having a solid plan of action will make you feel more in control. Even better, you’ll be in the driver’s seat when it comes to your finances and making sure you stay afloat through your rough patch until you can find more work again.
How to File for Unemployment
First things first: You need to file for unemployment benefits right away. Depending on where you live, the wheels of bureaucracy can grind slowly, and you don’t want to wait any longer than you have to for a benefits check. The average wait time is about two to three weeks, and that can feel like forever when you have bills to pay.
Unemployment benefits and policies vary by state, so your first job is to find out how to contact yours. The US Department of Labor has a helpful website for those looking for both unemployment benefits and new work. Simply click on your state and look for the link that says “Apply for Unemployment Benefits in _____” to be directed to your state’s website. There you’ll find specific directions, requirements and timelines for submitting your benefits application.
Before you click, bookmark that page for future reference. There’s also a lot of great resources for finding work and training in your state, so be sure to check out the job hunting resources provided when you’re ready to start your job search (more on that later).
Filling Out the Paperwork
Though the forms will vary from state to state, you can expect the same general process just about everywhere. First, see if you can apply online or by phone before you head to your local unemployment office. Though you’ll likely have to go in person eventually, it’s not always necessary for the first step.
You’ll need to gather plenty of documentation. Here are the papers most commonly requested by unemployment offices:
- Your last few pay stubs to prove where you worked and how much you earned.
- Your most recent W-2 form from your employer, if you worked there long enough to receive one at tax time.
- Your Social Security card.
- Photo ID, such as your driver’s license or passport.
- Your pink slip or other documentation about your layoff.
- Your employer’s unemployment insurance account number, which you should be able to get from HR.
You will also need to provide the reason you have been separated from your old job. If you were laid off, say so. If you were fired, it’s best to say something like “let go without wrongdoing or misconduct,” which should keep you eligible for benefits since you didn’t willfully harm your employer. If you quit, explain that you had “justifiable personal reasons” or something similarly vague.
You may be called in for an interview to verify your paperwork. You might be angry, upset or embarrassed, but try to stay calm and explain what happened in the simplest terms. The unemployment office doesn’t care about vendettas, only about making sure you’re eligible for benefits. Remind yourself that you have earned the money coming to you — you just have to stay focused on jumping through the hoops.
Waiting for Your First Benefits Check
Once you’ve been approved, you’ll likely have to prove that you’re out there actively searching for work — and you definitely want to do that! Treat your job search like a job by scouring the internet and networking with everyone you know to try to find your next big gig. Keep a log of the time you spend searching and a record of the applications you send so that you can show the unemployment office you’ve been doing your best.
Many states have programs to help job seekers, including classes on everything from interviewing and resume-writing to training courses for a whole new line of work. Take advantage! It’s time to revisit the Department of Labor’s list of resources available in your state to pursue your opportunities.
You also have several phone calls to make to get your financial house in order in light of your new reality. If you think you’ll have trouble paying any of your bills, now’s the time to let creditors know and see if your can restructure your payment plan. People to call include your mortgage lender, student loan lenders, credit card company and utility companies. Your local gas or electric company may offer heating assistance and other emergency measures to help you get through without worrying about being left out in the cold.
After Your Check Arrives
Most people are surprised to learn that unemployment benefits are treated as taxable income. If your check doesn’t have taxes withheld, be sure to set aside a percentage in a savings account to cover yourself. If you have had money withheld and the amount you received is less than you need, it’s time to tighten your belt. Try these tips to make ends meet so you stay in the black:
- Get a Side Gig. Now’s the time to try your hand at freelancing, driving for Uber, or other ways to make a little extra money while you wait for a new job offer.
- Get a Grip on Your Grocery Bill. There are plenty of ways to eat well on a budget, and you don’t have to resign yourself to a bowl of ramen every night. Shop smart and cook at home to save your cash.
- Cut Your Utility Bills. You can save money immediately by turning down your thermostat, taking shorter showers and finding a discount cell phone carrier. Even small cuts to your monthly expenses will give you more breathing room while you look for work.
Losing a job is never easy, but with smart choices, you can make it through. Follow these steps to get your benefits and make adjustments to your budget, and you’ll be back on track in no time. When you have that great new job, consider keeping your new frugal habits in place to grow your savings faster than ever before.
