Identification

• Profit sharing is a bonus payment you receive when your employer has profits it wishes to share with its employees. The profits of the employer are distributed to the employee and are considered wages by most states. These wages negatively impact your unemployment insurance benefit payments. The benefit payments are reduced when you receive a profit sharing check.
  
  

Disadvantage

• Unemployment insurance may provide just enough to pay your ordinary bills and expenses. Losing this money may make matters financially stressful for you. However, having to spend your profit sharing check may be even more stressful since you may not be able to save this money due to the fact that you'll have no income in the week you receive your profit sharing bonus. If the bonus is insignificant, you'll have nothing left by the time you qualify for unemployment benefits again.
  
  

Benefit

• You do not permanently lose your unemployment benefits. Once you are not receiving income again, you may reapply for benefits. You'll receive these benefits as long as you are not working, you are ready and able to work and you do not refuse a job offer. This means you'll be able to pay at least some, if not all, of your bills and expenses until you return to work.
  
  

Consideration

• If you have a Roth IRA or a cash value life insurance policy, consider drawing money from these sources. Contributions withdrawn from both of these sources generally do not affect unemployment insurance benefits, but you may use the money to replace the money you lose when you receive your profit sharing check. When you're back to work, you may replace this money.