A layoff benefit your employees fund, on terms set in advance.

What it is

A portable layoff benefit. Employees opt in and set a post-tax deduction from each paycheck into an account in their own name. If they are involuntarily terminated, the balance is released the same day the termination is verified, and career transition support switches on alongside it. The account is theirs, and it moves with them between employers.

What it costs

• A flat per-employee platform fee, quoted for your headcount.
• No premiums, and no new balance-sheet liability.
• Employer contributions to employee funds are optional — nothing requires them.

How the money is held

• In FDIC-insured accounts through banking partners, in the employee's name — never on CushionPay's balance sheet, and never on yours.
• Contributions move by ACH debit through Stripe, with per-debit limits.
• A full transaction ledger sits behind every balance.

Data and access

• Access is scoped per employer with row-level security.
• Employees hold their own login and their own account credentials, separate from yours.
• Bank accounts are linked on a Stripe-hosted page, so bank details are entered with Stripe, not on CushionPay.

Rollout

• Dedicated onboarding support.
• Bulk roster import, then invite emails to employees.
• A pilot group is typically live in weeks rather than a full quarter.
• Offer it at open enrollment or roll it out any time.

At a layoff

• CushionPay verifies an involuntary termination through documentation and employer confirmation.
• Once verified, the employee's balance is released the same day.
• No negotiation over what's owed from this account — the terms were set before the day came.

Common questions

Who owns the money?

The employee. Funds are held in their name and follow them if they change jobs.

Does the employer have to contribute?

No. The benefit is employee-funded. Employers can add to employee funds if they choose.

How are contributions taxed?

Contributions are made post-tax, from take-home pay. Your payroll and tax advisers should confirm treatment for your plan.

What does HR have to do?

Share the roster, send the invites, and confirm a termination when one happens. Onboarding support covers setup.