Yes, it is possible to receive financial assistance from many employers across the US. Large employers with big workforces are most likely to offer this.
- Cash advances are the most common form of workplace assistance. This essentially means that your employer will grant you an early paycheck, and is offered by many US employers.
- In exceptional situations, you could be able to obtain employee relief funds.
- Some firms, like Amazon, offer financial help to employees who choose to further their education.
- Other forms of credit include payday loans, credit from credit unions, and asking loved ones for a financial favor.
Why Would I Need Financial Assistance?
Financial assistance should only be sought out if absolutely necessary. Most employees only ask for financial assistance in urgent situations, such as when they’re hit with life’s unforeseeable costs. These may include:
- Medical bills
- Dental bills
- Car repair
- Home repair
- Invoice from a vet to cover a pet’s medical costs
- Funeral costs
Do All Employers Offer Financial Assistance?
No, many employers do not offer financial assistance schemes. Large companies and companies that have high liquidity are more likely than smaller employers to offer financial aid to their workers. These schemes are also common within companies who pride themselves on nurturing their workforce.
Employers such as Walmart and Kroger offered wage rises and bonuses to their workers during Covid-19, while other companies froze their wages as they struggled to cover costs and make profits. This demonstrates how the profitability of a company directly impacts how they treat their employees.
What Forms Of Financial Aid Are There?
- Cash Advances. These are the most common of help and are advances on a future paycheck, meaning that you receive your paycheck earlier than planned. They may include an interest free loan with your salary 30 days in advance. To repay this, your future paychecks may be diminished.
- Employee Relief Funds. These are funded by employers who contribute to public charities that provide employee disaster programs. These will only be available in exceptional circumstances, such as natural disasters. These are uncommon and are often employees are unaware of these until such an emergency occurs.
- Direct Payment To Workers. In extreme situations, Section 139 of the Internal Revenue Code dictates that employers may provide disaster relief payments to employees to cover costs gathered through a declared disaster. The payments would be used for childcare costs, home office costs, medical costs, or funeral expenses. These payments will only be attainable if the payments are for expenses that are not reimbursable by insurance or other assistance.
Can I Get Funding To Return To Education?
Big employers are making waves in this area. They want employees to feel free to pursue their education, which, in the long run, will strengthen their knowledge, skills, and career. Employers including Target, Walmart and Amazon are standing behind these efforts.
Alternative Borrowing Options
You could also consider alternatives, such as borrowing from a loved one, selling items around the house, or seeking a payday loan. You could think about budgeting more carefully to pinch the pennies more efficiently. In order to do this, you could download a budgeting app like Mint or YNAB which are dedicated to helping budgeters succeed!
If you need money rapidly, your best bet is seeking a payday loan, but you should be aware that they are expensive, and failing to meet repayments can damage your credit record. Payday loans can provide you with cash within one day of applying. However, this comes at a cost. With an average APR of 396% across the US, borrowing is pricey. If you wish to know more, get in touch, and we can find a lender with the best available terms for you.
Overall, whilst not every employer is able to offer financial assistance, many large companies offer financial assistance programs. If you find yourself in need of support, ask your employer what options are available to you.