Losing your job is a miserable thing. Unfortunately, it is happening time and again these days. If you are let go, it is vital that you understand the tax consequences of losing your job. No, being fired isn’t taxable, but follow up events can be.
Many of my clients quickly use retirement accounts to fund living expenses. Often this results in tax debt that needs to be repaid after obtaining employment.. The IRS becomes an additional creditor. Savings are often minimal and the thought of credit card debt is frightening. Lifestyle changes are like taking poison.
Inquire about your severance pay (whether you qualify or not). Most people may not be guaranteed a severance unless it was established as part of your original job offer. Severance pay is calculated at 7 days per calendar year of service to the company. However, this could be negotiated if you’ve just recently accomplished an important assignment, have been recognized or achieved a significant goal. Make sure to remind your employer of this. It could get you an additional week of arbetsdomstolen they weren’t intending to impart.
OWorld Electronics USA Labour Court Get information on global phones. Good explanation of which GSM frequencies and “bands” function in which countries, which will determine the phone you purchase for travel (and perhaps home).
Health insurance coverage – When you get laid off from your job, your health insurance goes with it. For those who have chronic health problems or pre-existing conditions, having some type of health insurance is crucial for surviving a layoff. Since you are not employed anymore, the company is not responsible for reasonable severance pay for your health insurance. Employers offer insurance coverage through COBRA. However, it will cost you more.
After watching this movie it didn’t seem to far from the truth, but realistically most people lives in this economy who have had their had their high paying job are having a very tough time getting back on track.
Have a financial nest egg – There are so many people that don’t think about having money set aside in case they are part of a company layoff. This is one of the most important tips for surviving a layoff. You will need money in order to purchase the basics such as food, gas for your vehicle and paying bills. The ancient rule is to have at least three to six months worth of funds available in the event of something like this. Better yet, try saving at least a year’s worth of funds.
What if doesn’t work? You’ll never know, unless you try, and the worst they can do is say no. If the moment breaks, maybe you won’t have another opportunity to ask these questions again.