--- title: Employee Benefits and Furloughs description: Employee Benefits and Furloughs image: https://blog.affiliatedhrpayroll.com/hubfs/Imported_Blog_Media/employee-entrance-2-1189106-1600x1200-1.jpg --- - [Secure File Transfer](https://affiliatedpayroll.myfileguardian.com/PostOffice/Main.aspx) - [Employee Log-In](https://affiliatedhrpayroll.com/employee-login/) - [Employer Log-In](https://affiliatedhrpayroll.com/client-login-portals/) [Request A Quote](https://affiliatedhrpayroll.com/request-a-quote/) [![Affiliated HR & Payroll Services](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/raw_assets/public/Affiliated_HR_Payroll_Services_June2024/images/Affiliated-HR-Payroll-logo-dark.png?width=310&height=250&name=Affiliated-HR-Payroll-logo-dark.png "Affiliated HR & Payroll Services")](https://affiliatedhrpayroll.com/) - [About](https://affiliatedhrpayroll.com/about/) - Solutions - [HR Services](https://affiliatedhrpayroll.com/solutions/hr-services/) - [Employee Self Service](https://affiliatedhrpayroll.com/solutions/hr-services/employee-self-service/) - 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Many businesses that were thriving before the pandemic now find themselves having to make difficult decisions, including whether to furlough or lay off employees. This task is not as simple as cutting payroll. Other factors must be considered. For example, furloughed employees are treated differently than laid-off employees when it comes to employee benefits. It is critical for business owners to address these issues armed with the knowledge they need to make the best decisions possible. The following four considerations need to be part of any employee benefits analysis. **Health Benefits** When employees are furloughed, they still may be able to maintain their employer-paid benefits. Those who are laid off, however, generally are not. Briefly, here’s how it works: People who are laid off are eligible for COBRA for their medical, dental, vision and HSA. The employer isn’t responsible for paying any of the cost, but may choose to do so for some or all of the 18-month COBRA period. People who are furloughed keep their benefits as long as they are in a stability period. Those who aren’t in a stability period are eligible for COBRA. However, the employer may choose to either (1) pay the cost or (2) consult the plan sponsor about amending the plan to include furloughed workers. The rules around these issues are complicated, so seek the advice of professional counsel before finalizing any decisions. **Disability and Life Insurance** Eligibility for disability and life benefits are affected by furloughs or layoffs. In some instances, the business need to continue paying for these benefits. Consult your employee benefits adviser to determine the relevant provisions in your plans. **Severance Pay and Severance Packages** Severance pay is compensation that often is given to employees when they are laid off or terminated. Severance packages are similar, but they include both pay and benefits. Severance pay isn’t mandated. Instead, it is viewed as a goodwill gesture. Before the pandemic, severance pay may have prevented a person from applying for unemployment as long as the money covered the wages — it depended on the state. The Families First Coronavirus Response Act (FFCRA) granted some leave provisions that are applicable nationwide. **The Long View** Money is tight in most businesses, so employee benefits might be viewed as an expense that can be cut. An intangible factor needs to be included in this calculation, however, and that is talent. When things improve and businesses are on the other side of this pandemic, the shortage of great talent that has been with us for a while will matter more than ever. Businesses need to consult their financial, legal and employee benefits professionals so they can come up with a workable plan that will get them through the worst of these disruptions and leave the business in a good place for moving forward once a stable new normal is achieved. For more guidance establishing a plan for your business, contact us today. --- #### Tag: [Reminder](https://blog.affiliatedhrpayroll.com/tag/reminder) [Benefits & Compensation](https://blog.affiliatedhrpayroll.com/tag/benefits-compensation) [Career Planning](https://blog.affiliatedhrpayroll.com/tag/career-planning) [benefits](https://blog.affiliatedhrpayroll.com/tag/benefits) [severance pay](https://blog.affiliatedhrpayroll.com/tag/severance-pay) [Employee](https://blog.affiliatedhrpayroll.com/tag/employee) [furlough](https://blog.affiliatedhrpayroll.com/tag/furlough) #### Share: - [Follow us on Facebook](http://www.facebook.com/share.php?u=https://blog.affiliatedhrpayroll.com/employee-benefits-and-furloughs) - [Follow us on Twitter](https://twitter.com/intent/tweet?url=https://blog.affiliatedhrpayroll.com/employee-benefits-and-furloughs&text=Employee%20Benefits%20and%20Furloughs) - [Follow us on Linkedin](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.affiliatedhrpayroll.com/employee-benefits-and-furloughs) - [Follow us on Pinterest](http://pinterest.com/pin/create/button/?url=https://blog.affiliatedhrpayroll.com/employee-benefits-and-furloughs&text=Employee%20Benefits%20and%20Furloughsdescription=The%20pandemic%20has%20thrown%20businesses%20into%20a%20never-before-seen%20scenario%20that%20has%20upended%20how%20they%20operate.%20Many%20businesses%20that%20were%20thriving%20before%20the%20pandemic[...]&media=https://45831542.fs1.hubspotusercontent-na1.net/hubfs/45831542/Imported_Blog_Media/employee-entrance-2-1189106-1600x1200-1.jpg) --- #### [Exit Interviews During the Pandemic Previous Post](https://blog.affiliatedhrpayroll.com/exit-interviews-during-the-pandemic) #### [Employer Options When an Employee Refuses to Sign a Handbook Next Post](https://blog.affiliatedhrpayroll.com/employer-options-when-an-employee-refuses-to-sign-a-handbook) --- ## Related Posts [Employee benefits](https://blog.affiliatedhrpayroll.com/tag/employee-benefits), [Employee](https://blog.affiliatedhrpayroll.com/tag/employee), [Engagement](https://blog.affiliatedhrpayroll.com/tag/engagement) [Stephanie Baxmann](https://blog.affiliatedhrpayroll.com/author/stephanie) 30 December, 2024 #### [Enhancing Employee Engagement Through Technology: Tools to Boost Morale and Productivity](https://blog.affiliatedhrpayroll.com/enhancing-employee-engagement) Employee engagement technology is revolutionizing how we foster a workforce aligned with company… [Read More](https://blog.affiliatedhrpayroll.com/enhancing-employee-engagement) [Employee](https://blog.affiliatedhrpayroll.com/tag/employee), [Data](https://blog.affiliatedhrpayroll.com/tag/data) [Stephanie Baxmann](https://blog.affiliatedhrpayroll.com/author/stephanie) 12 November, 2024 #### [How to Handle Sensitive Employee Data: Best Practices for Protecting Privacy](https://blog.affiliatedhrpayroll.com/how-to-handle-sensitive-employee-data) Data security is as crucial as financial security in today's business world. Sensitive employee… [Read More](https://blog.affiliatedhrpayroll.com/how-to-handle-sensitive-employee-data) [Reminder](https://blog.affiliatedhrpayroll.com/tag/reminder), [PTO](https://blog.affiliatedhrpayroll.com/tag/pto), [Salary](https://blog.affiliatedhrpayroll.com/tag/salary), [Benefits & Compensation](https://blog.affiliatedhrpayroll.com/tag/benefits-compensation), [Exempt](https://blog.affiliatedhrpayroll.com/tag/exempt), [Alert](https://blog.affiliatedhrpayroll.com/tag/alert), [Employee](https://blog.affiliatedhrpayroll.com/tag/employee) [Afilliated HR & Payroll](https://blog.affiliatedhrpayroll.com/author/ahrp-admin) 13 August, 2020 #### [Exempt Employees Pay for Time Off](https://blog.affiliatedhrpayroll.com/exempt-employees-pay-for-time-off) Employers often face challenges trying to figure out salaries for exempt employees who take off a… [Read More](https://blog.affiliatedhrpayroll.com/exempt-employees-pay-for-time-off) ![Affiliated HR Payroll](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/Affiliated_HR_Payroll_Services_June2024/Images/Affiliated-HR-Payroll-logo-light.png?width=750&name=Affiliated-HR-Payroll-logo-light.png "Affiliated HR Payroll") [![Accredited Business](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/Affiliated_HR_Payroll_Services_June2024/Images/blue-seal-293-61-whitetxt-bbb-90053136.png?width=293&name=blue-seal-293-61-whitetxt-bbb-90053136.png "Accredited Business")](https://www.bbb.org/us/tx/stafford/profile/payroll-services/affiliated-payroll-services-0915-90053136/#sealclick) ![Satisfaction Stamp](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/Affiliated_HR_Payroll_Services_June2024/Images/100-satisfaction-stamp.png?width=160&name=100-satisfaction-stamp.png "Satisfaction Stamp") ![Isolved-Network](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/Affiliated_HR_Payroll_Services_June2024/Images/Isolved-Network.png?width=451&name=Isolved-Network.png "Isolved-Network") #### RESOURCES & LINKS - [AHRP Resources](https://affiliatedhrpayroll.com/resources/) - [Blog](https://blog.affiliatedhrpayroll.com/) - [Request A Quote](https://affiliatedhrpayroll.com/request-a-quote/) - [Employer Log-In](https://affiliatedhrpayroll.com/client-login-portals/) - [Employee Log-In](https://affiliatedhrpayroll.com/employee-login/) - [Secure File Transfer](https://affiliatedpayroll.myfileguardian.com/PostOffice/Main.aspx) - [Privacy/Terms of Use](https://affiliatedhrpayroll.com/privacy-terms-of-use/) [![facebook](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/Affiliated_HR_Payroll_Services_June2024/Images/icon-facebook.png?width=100&name=icon-facebook.png "facebook")](https://www.facebook.com/AffiliatedHRPayroll/) [![Youtube](https://blog.affiliatedhrpayroll.com/hs-fs/hubfs/Affiliated_HR_Payroll_Services_June2024/Images/icon-youtube.png?width=100&name=icon-youtube.png "Youtube")](https://www.youtube.com/channel/UCxFmvmFA1inMJk28v4QlTNA) #### NEWSLETTER SIGNUP © 2026 Affiliated HR & Payroll [All Rights Reserved.](https://affiliatedhrpayroll.com/privacy-terms-of-use/) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Afilliated HR & Payroll", "url" : "https://blog.affiliatedhrpayroll.com/author/ahrp-admin" }, "dateModified" : "2024-07-16T13:50:37.512Z", "datePublished" : "2020-10-08T16:53:31.000Z", "headline" : "Employee Benefits and Furloughs", "image" : [ "https://blog.affiliatedhrpayroll.com/hubfs/Imported_Blog_Media/employee-entrance-2-1189106-1600x1200-1.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.affiliatedhrpayroll.com/employee-benefits-and-furloughs", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.affiliatedhrpayroll.com/hubfs/Affiliated%20Logos/Affiliated-HR-Payroll-logo-dark.png" } } } ```