Who gets paid in a shutdown and who doesn't?

Furloughed federal employees demonstrate in front of a shuttered Independence Hall at Independence National Historical Park in Philadelphia on Tuesday.

NEW YORK (CNNMoney)

Among the hardest-to-grasp and most vital questions: Which federal employees will get paid and which won't. And for those who will get paid, when will they see their paychecks?

"It's messy," said William Hoagland, a senior vice president at the Bipartisan Policy Center who served for 14 years as the Senate Budget Committee's staff director.

Broadly speaking, if you work for the federal government during a shutdown, you must be paid.

Among the reasons: Unless specifically authorized by law, no one is allowed to volunteer for a federal agency, according to the Office of Personnel Management.

The only wrinkle is that your paycheck for time worked during the shutdown may be delayed until the shutdown ends and Congress has appropriated money to keep the government running.

But if you are furloughed in a shutdown, it is a furlough without pay. After the shutdown ends, Congress may choose to pay those workers who were furloughed for the time they were out. That's what lawmakers did after the shutdown in the mid-1990s. Still, there's no guarantee they will make the same decision this time around.

Here's a look at the pay situation for different types of federal employees.

President Obama: The president has constitutional duties and so will remain on the job throughout the shutdown. Money to pay his salary is not reliant on the annual fights Congress has over funding the government. So he will continue to receive his paychecks on schedule throughout the shutdown.

Members of Congress: Sure, lawmakers caused the shutdown. But like the president, they too have constitutional duties and will remain on the job while being paid on time throughout the shutdown.

Congressional staffers: Staffers who work during the shutdown won't be paid until after the shutdown ends and their bosses pass a funding bill.

Supreme Court Justices: There is a constitutional prohibition against a "diminution" in pay for the justices and other judges whose jobs are spelled out in Article III of the Constitution, according to a Congressional Research Service report. So like President Obama and members of Congress, they will continue to be paid on time throughout the shutdown.

Related: Furloughed workers eligible for unemployment

The same would also likely apply to U.S. Court of Claims judges, U.S. magistrate judges and U.S. bankruptcy judges, the CRS noted.

Federal court staffers and officers: Those who work in the federal court system likely will only be paid for their shutdown work once the shutdown ends and Congress passes a funding bill.

Rank-and-file government workers: Those who work during the shutdown will be paid for those efforts, but again their paychecks may be delayed until the shutdown ends.

Rank-and-file workers who are furloughed will not be paid at all, unless Congress decides to compensate them.

Furloughed workers may be allowed to apply for unemployment benefits for the duration of the shutdown.

Also, furloughed workers are still likely to receive checks this week for the time they worked in the pay period that immediately preceded the shutdown.

Active-duty military and civilian defense personnel: President Obama on Monday night signed into law an order that the 1.4 million active-duty military personnel as well as reserve personnel will be paid on time throughout the shutdown, during which they will stay on duty. The order also applies to civilian personnel and contractors if they work during the shutdown for the Department of Defense and the Coast Guard and support members of the Armed Forces.

Other federal workers: Some federal employees work on projects and programs funded with money other than annual appropriations. These workers likely will continue to be paid on time throughout the shutdown. The only problem may be if the shutdown lasts a long time and that funding runs dry.

Tell us how the shutdown affects you

First Published: October 1, 2013: 5:36 PM ET

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Hyundai defers car payments for gov't workers

Hyundai is offering to allow furloughed federal employees to put off loan and lease payments on their Hyundai vehicles such as the full-sized Azera sedan.

NEW YORK (CNNMoney)

Also, during the month of October, furloughed employees will be able to buy or lease a new Hyundai (HYMTF) vehicle and not make payments for three months.

The offer applies only to vehicles purchased or leased through Hyundai Capital of America, the South Korea-based automaker's U.S. financing division. The payment deferral offer for current owners also applies to employees of federal contractors affected by the shutdown but the offer to put off payments for new purchases applies only to direct employees of the federal government, Hyundai spokesman Jim Trainor said.

Related - Federal workers can collect unemployment during shutdown

The program is similar to a promotion Hyundai ran in 2009 in response to The Great Recession, when it offered to buy back its cars if a new owner lost his or her job within a year of purchasing the vehicle. At the time, Hyundai also offered to make three months of car payments while the owner kept the car.

Related- Furloughed federal employees drink up around D.C.

The 2009 offer was successful in boosting Hyundai sales at a time when virtually every other automaker was suffering from drastic sales declines. That's not the case this time around, as auto sales have been rebounding strongly this year.

First Published: October 1, 2013: 5:48 PM ET

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Treasury down to last steps on debt ceiling

Treasury Secretary Jack Lew told Congress that he is close to exhausting 'legal and prudent options' to stay below the debt ceiling.

NEW YORK (CNNMoney)

Now that those steps are underway, it won't be long before the country can no longer pay all its bills in full.

"There are no other legal and prudent options to extend the nation's borrowing authority," Lew wrote. The Treasury Department "continues to believe" that it will run out of extraordinary measures no later than Oct. 17, he added.

At that point, Treasury will only be able to pay the bills that come due with two things -- the $30 billion in cash that Lew estimates Treasury will have on hand in mid-October, plus the revenue coming in every day.

(Related: 8 things you need to know about debt ceiling)

Since daily payments and daily revenue inflows vary from day to day, it's impossible to predict exactly when Treasury will come up short and be unable to pay everything that's due, putting the country at risk of default.

The Congressional Budget Office projects that day could come between Oct. 22 and Oct. 31, if Congress doesn't raise the debt ceiling, which currently stands at $16.699 trillion.

Lew's letter came at the end of Day One of a government shutdown, the first in nearly two decades.

With Congress unable to agree on a deal to fund the government past Monday, more than 800,000 federal workers are being furloughed without pay this week. In addition, government agencies are curtailing their services and federal museums, parks and monuments are closed to the public.

It's unclear how long a shutdown will last because there's no sign that Congress is any closer to reaching a deal. A prolonged shutdown could alter Lew's debt ceiling "X" date.

"Although the current lapse in appropriations creates some additional uncertainty, we do not believe it will impact our projections materially unless it continues for an extended period of time," Lew wrote.

First Published: October 1, 2013: 9:11 PM ET

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Obamacare: How do I sign up?

Americans can now enroll in health care coverage in the Affordable Care Act insurance exchanges -- the centerpiece of Obama's landmark legislation.

NEW YORK (CNNMoney)

People can now enroll in health care coverage in the Affordable Care Act insurance exchanges -- the centerpiece of Obama's landmark legislation. Coverage begins in 2014, but folks must sign up by Dec. 15 if they want coverage to begin Jan. 1.

But despite the run up to the Oct 1 launch date, Americans remain largely in the dark about the exchanges. Six in 10 people are not aware of the exchanges, according to a new survey by the Commonwealth Fund, a foundation that promotes better access to and quality of health care. Knowledge is even scanter among the uninsured -- who would most benefit from the exchanges. More than two-thirds of the uninsured are unaware of the exchanges.

While the enrollment process will vary a bit depending on the state, here's a general guideline to how to sign up for a policy on the exchange.

All Americans can start at healthcare.gov, the federal online Obamacare portal. You'll be asked to enter your zip code.

If you live in a state that's running its own exchange, you will be directed there or you can just go directly to your state's exchange website. Those in the states where the federal government is running the exchange will apply through the federal portal.

Share your story: Are you planning to sign up for Obamacare this week?

You must then set up an account and provide information, such as your name, address, age, number of people in your family, household income, employer and whether you have access to insurance elsewhere. You'll also have to say whether you are a smoker, since insurance carriers can charge tobacco users more.

You can also apply for a federal subsidy, which may require you to provide pay stubs and certain tax forms if the income you enter doesn't match Internal Revenue Service records. Enrollees should learn instantly whether they qualify for the subsidy, which they can apply to insurance coverage right away. You'll also find out whether you are eligible for Medicaid, and whether you can enroll your children in the government health program for kids, known as CHIP.

Then comes the enrollment process. Applicants can learn about the various insurance policies available in their area, including deductibles, out-of-pocket costs, doctor networks and benefits packages. Plans can be sorted by premiums and various other criteria and can be compared side by side.

You can then enroll and opt to set up premium payments online or call the carrier's customer service department for additional payment options.

(Some technical glitches in a few places may prevent residents in certain states from completing the enrollment process online in the first few weeks, but they can register and look at the options and rates available to them.)

There are a variety of ways to get your questions answered.

Applicants can use a live chat feature on the federal portal or call the help line at 800-318-2596 to get assistance with enrollment. States are also staffing call centers to assist residents with enrollment. Applications can also be mailed in.

Obamacare: Your 12 biggest questions answered

Those who need more hand-holding can go to a variety of groups for in-person help, mostly non-profits or health centers funded by the federal government. Experts, including "navigators" and certified application counselors, will be on hand to answer questions and walk people through the application process.

To find this assistance, go to localhelp.healthcare.gov on the federal portal and type in your zip code. You can also go to getcoveredamerica.org or text "covered" to 877877 to get a list from Enroll America, a non-profit aimed at boosting participation in Obamacare.

In Florida, which has one of the highest shares of uninsured Americans, navigators will sit with enrollees and guide them through the process, said Lean Barber-Heinz, interim executive director of Florida CHAIN, a consumer health care advocacy group. Florida CHAIN, for instance, is holding an enrollment fair on Saturday, Oct. 5 at a St. Joseph's Hospital in Tampa, where navigators will be on hand to help people both with the technology and with understanding the choices they have.

"The marketplace is really designed for people to be able to navigate it themselves," she said, of the federal portal. "But the help will be available."

Enrollees can also go to independent, licensed insurance agents and brokers to review their options. The agents and brokers are not allowed to push one insurer's products, but can walk consumers through all the different policies, their deductibles and benefits.

Though enrollment is now open, people don't have to sign up right away. You can pick a policy as late as March 31, but if you wait until the last minute, your coverage won't begin until May.

First Published: October 1, 2013: 12:41 AM ET

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Japan hikes sales tax as economy recovers

HONG KONG (CNNMoney)

Paid by consumers when they buy goods or services, the country's consumption tax will be increased to 8% in April 2014. If needed, the government has the option to implement an additional increase to 10% by 2015.

Advocates for the tax increase argue that Japan must do something to improve its fiscal position. Gross public debt is projected to hit 230% of GDP next year, a level critics say is unsustainable.

Should the government follow through with the tax hike, it would help raise revenue and prove that the country is committed to fiscal reforms. But the measure, as planned, would also slow the economy.

In an effort to soften the blow, Abe is expected to announce details of a $50 billion stimulus package Tuesday evening.

The plan will include funding for roads and transportation, with an eye on preparing for the 2020 Tokyo Olympics. Money will also be allocated for disaster area reconstruction and an initiative designed to encourage women to enter the workforce, according to local media reports.

Related story: Japan debt tops 1 quadrillion yen

While that spending should help the economy, it will dilute the impact of the tax hike on the debt pile. That has critics worried.

"Today's decision may not be as unequivocally positive as generally thought, as the government's credibility is still at risk," analysts from Capital Economics wrote.

Japan has been mired in a malaise brought on by falling prices and a strong yen for years. But the economy's prospects have brightened significantly since Abe announced fresh spending by the government and encouraged the central bank to unleash a tidal wave of asset purchases.

Related story: Women hold key to fixing Japan's economy

Growth has picked up, the yen has fallen sharply and stocks have risen dramatically. The IMF has endorsed the plan and Japan has largely avoided charges of currency manipulation.

The gambit appears to be paying off. The latest quarterly Tankan survey, which surveys companies from across Japan, showed Tuesday that business confidence is at the highest level in years.

But the third pillar of the so-called Abenomics plan -- structural reforms -- has been tougher to implement.

Abe's government has proposed reforms that would make the labor market more flexible, encourage immigration, bring nuclear power plants back online and draw more Japanese women into the workforce.

Implementing the reforms in a timely manner will require close coordination with interest groups, sustained public support and deft political maneuvering by Abe's government.

Already there are signs of stalling momentum, although the tax increase shows Japan may be turning over a new leaf.

-- CNN's Yoko Wakatsuki contributed reporting.

First Published: October 1, 2013: 4:00 AM ET

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Stocks poised to shrug off shutdown

NEW YORK (CNNMoney)

U.S. stock futures moved higher, pointing to a rebound from losses on all major U.S. indexes Monday. World markets also rose.

Congress failed to agree on a short term extension of government funding late Monday, initiating a series of complex procedures to power down the federal agencies.

A government shutdown could cost the U.S. economy roughly $1 billion a week in pay lost by furloughed federal workers.

The dollar slipped against other major currencies but stock market reaction was muted.

Head of trading at ETX Capital Joe Rundle said traders' apparent appetite for risk reflected the view that, if resolved quickly, a government shutdown "will do little damage to the overall health of the U.S. economy."

Investors are also monitoring a separate battle in Washington to raise the debt ceiling, as failure to do so could leave the U.S. unable to pay its bills and hurt its credit rating.

Several economic releases are slated for Tuesday, with the Census Bureau due to publish its monthly report on construction spending, and the Institute for Supply Management monthly manufacturing report. Major automakers will issue their monthly sales reports throughout the day.

In corporate news, drugstore operator Walgreen Company (WAG, Fortune 500)is set to release its quarterly results before the opening bell.

Related: Fear & Greed Index

U.S. stocks fell Monday amid continued anxiety over the showdown in Washington. But confirmation of the shutdown overnight created few waves across global markets.

European markets were mostly higher in morning trading. Tokyo stocks closed with modest gains, while exchanges in Hong Kong and Shanghai were closed for a holiday.

First Published: October 1, 2013: 5:19 AM ET

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Amazon to hire 70,000 seasonal workers

NEW YORK (CNNMoney)

The seasonal employees will work full-time at one of Amazon's more than 40 fulfillment centers across the country. Amazon's (AMZN, Fortune 500) seasonal hiring this year represents a big increase from 2012, when the company hired 50,000 seasonal staffers.

Amazon didn't go into details about the specific positions, but workers at the fulfillment centers typically perform a range of tasks involved in online orders: Pulling items from shelves, packing up shipments and storing merchandise.

It's likely that some of the seasonal staffers will score full-time gigs. In 2012, Amazon said "thousands" of seasonal employees became regular staffers after the holidays, and it expects to do the same this year. So far in 2013, more than 7,000 temporary Amazon employees have become full-time.

Related story: Toys R Us holiday hiring same as last year

Amazon is just one of several large companies that ramps up hiring around the holidays. Unlike Amazon's news, however, many other recent holiday hiring announcements have proved disappointing.

Last week, Toys R Us said it will bring on 45,000 workers this year, roughly on par with last year's plans. Target (TGT, Fortune 500) said this month that it plans to hire 70,000 temp workers, down from 88,000 in 2012.

Wal-Mart (WMT, Fortune 500), the nation's largest retailer, said it would hire 10% more workers this year compared with 2012. But a spokesman attributed some of the increase to the company needing to staff the 110 new stores it has opened so far this year, and the "quite a few more" it plans to open in October.

First Published: October 1, 2013: 12:32 AM ET

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Obamacare: How do I sign up?

Americans can now enroll in health care coverage in the Affordable Care Act insurance exchanges -- the centerpiece of Obama's landmark legislation.

NEW YORK (CNNMoney)

People can now enroll in health care coverage in the Affordable Care Act insurance exchanges -- the centerpiece of Obama's landmark legislation. Coverage begins in 2014, but folks must sign up by Dec. 15 if they want coverage to begin Jan. 1.

But despite the run up to the Oct 1 launch date, Americans remain largely in the dark about the exchanges. Six in 10 people are not aware of the exchanges, according to a new survey by the Commonwealth Fund, a foundation that promotes better access to and quality of health care. Knowledge is even scanter among the uninsured -- who would most benefit from the exchanges. More than two-thirds of the uninsured are unaware of the exchanges.

While the enrollment process will vary a bit depending on the state, here's a general guideline to how to sign up for a policy on the exchange.

All Americans can start at healthcare.gov, the federal online Obamacare portal. You'll be asked to enter your zip code.

If you live in a state that's running its own exchange, you will be directed there or you can just go directly to your state's exchange website. Those in the states where the federal government is running the exchange will apply through the federal portal.

Share your story: Are you planning to sign up for Obamacare this week?

You must then set up an account and provide information, such as your name, address, age, number of people in your family, household income, employer and whether you have access to insurance elsewhere. You'll also have to say whether you are a smoker, since insurance carriers can charge tobacco users more.

You can also apply for a federal subsidy, which may require you to provide pay stubs and certain tax forms if the income you enter doesn't match Internal Revenue Service records. Enrollees should learn instantly whether they qualify for the subsidy, which they can apply to insurance coverage right away. You'll also find out whether you are eligible for Medicaid, and whether you can enroll your children in the government health program for kids, known as CHIP.

Then comes the enrollment process. Applicants can learn about the various insurance policies available in their area, including deductibles, out-of-pocket costs, doctor networks and benefits packages. Plans can be sorted by premiums and various other criteria and can be compared side by side.

You can then enroll and opt to set up premium payments online or call the carrier's customer service department for additional payment options.

(Some technical glitches in a few places may prevent residents in certain states from completing the enrollment process online in the first few weeks, but they can register and look at the options and rates available to them.)

There are a variety of ways to get your questions answered.

Applicants can use a live chat feature on the federal portal or call the help line at 800-318-2596 to get assistance with enrollment. States are also staffing call centers to assist residents with enrollment. Applications can also be mailed in.

Obamacare: Your 12 biggest questions answered

Those who need more hand-holding can go to a variety of groups for in-person help, mostly non-profits or health centers funded by the federal government. Experts, including "navigators" and certified application counselors, will be on hand to answer questions and walk people through the application process.

To find this assistance, go to localhelp.healthcare.gov on the federal portal and type in your zip code. You can also go to getcoveredamerica.org or text "covered" to 877877 to get a list from Enroll America, a non-profit aimed at boosting participation in Obamacare.

In Florida, which has one of the highest shares of uninsured Americans, navigators will sit with enrollees and guide them through the process, said Lean Barber-Heinz, interim executive director of Florida CHAIN, a consumer health care advocacy group. Florida CHAIN, for instance, is holding an enrollment fair on Saturday, Oct. 5 at a St. Joseph's Hospital in Tampa, where navigators will be on hand to help people both with the technology and with understanding the choices they have.

"The marketplace is really designed for people to be able to navigate it themselves," she said, of the federal portal. "But the help will be available."

Enrollees can also go to independent, licensed insurance agents and brokers to review their options. The agents and brokers are not allowed to push one insurer's products, but can walk consumers through all the different policies, their deductibles and benefits.

Though enrollment is now open, people don't have to sign up right away. You can pick a policy as late as March 31, but if you wait until the last minute, your coverage won't begin until May.

First Published: October 1, 2013: 12:41 AM ET

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Japan hikes sales tax as economy recovers

HONG KONG (CNNMoney)

Paid by consumers when they buy goods or services, the country's consumption tax will be increased to 8% in April 2014. If needed, the government has the option to implement an additional increase to 10% by 2015.

Advocates for the tax increase argue that Japan must do something to improve its fiscal position. Gross public debt is projected to hit 230% of GDP next year, a level critics say is unsustainable.

Should the government follow through with the tax hike, it would help raise revenue and prove that the country is committed to fiscal reforms. But the measure, as planned, would also slow the economy.

In an effort to soften the blow, Abe is expected to announce details of a $50 billion stimulus package Tuesday evening.

The plan will include funding for roads and transportation, with an eye on preparing for the 2020 Tokyo Olympics. Money will also be allocated for disaster area reconstruction and an initiative designed to encourage women to enter the workforce, according to local media reports.

Related story: Japan debt tops 1 quadrillion yen

While that spending should help the economy, it will dilute the impact of the tax hike on the debt pile. That has critics worried.

"Today's decision may not be as unequivocally positive as generally thought, as the government's credibility is still at risk," analysts from Capital Economics wrote.

Japan has been mired in a malaise brought on by falling prices and a strong yen for years. But the economy's prospects have brightened significantly since Abe announced fresh spending by the government and encouraged the central bank to unleash a tidal wave of asset purchases.

Related story: Women hold key to fixing Japan's economy

Growth has picked up, the yen has fallen sharply and stocks have risen dramatically. The IMF has endorsed the plan and Japan has largely avoided charges of currency manipulation.

The gambit appears to be paying off. The latest quarterly Tankan survey, which surveys companies from across Japan, showed Tuesday that business confidence is at the highest level in years.

But the third pillar of the so-called Abenomics plan -- structural reforms -- has been tougher to implement.

Abe's government has proposed reforms that would make the labor market more flexible, encourage immigration, bring nuclear power plants back online and draw more Japanese women into the workforce.

Implementing the reforms in a timely manner will require close coordination with interest groups, sustained public support and deft political maneuvering by Abe's government.

Already there are signs of stalling momentum, although the tax increase shows Japan may be turning over a new leaf.

-- CNN's Yoko Wakatsuki contributed reporting.

First Published: October 1, 2013: 4:00 AM ET

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Rating agencies an afterthought in debt ceiling fight

S&P upped its outlook on the U.S. credit rating in June to "stable," though the country didn't regain its AAA rating.

NEW YORK (CNNMoney)

Standard & Poor's made headlines and roiled world markets following the last debt ceiling crisis, in 2011, when it cut the United States' sterling AAA rating to AA+. The rating agency cited concerns about the nation's long-term debt and its dysfunctional policy making.

But two years later, that downgrade has had little lasting impact. As in 2011, the possibility of a debt ceiling breach remains a scary prospect, but investors say the ratings agencies are largely an afterthought in the current crisis.

"They're viewed as generally being late to the party, especially on U.S. government debt," said Craig Brothers, senior portfolio manager at Bel Air Investment Advisors. "I don't think [U.S. debt] would trade any differently as AA than as AAA."

The rating agencies took hits to their reputations following the financial crisis, having failed to flag signs of trouble in the housing market ahead of the crash. Five years later, the effects of these mistakes are still lingering.

"The rating agencies have lost a lot of credibility over the last several years," said Kim Rupert, a fixed income analyst at Action Economics. "They're still important, but the market doesn't put as much faith and credibility into them and they're not the overriding factor anymore."

The big three rating agencies -- S&P, Moody's and Fitch -- analyze risk and give debt a grade that reflects the borrower's ability to pay the underlying loans and serves as guidance for investors. The safest bets are labeled "AAA."

The U.S. remains rated AA+ by S&P, with its ratings outlook "stable," while Fitch has kept the country at AAA. That could change if the battle over the debt ceiling heats up.

"Failure to raise the federal debt ceiling in a timely manner (i.e. several days prior to when the Treasury will have exhausted extraordinary measures and cash reserves) will prompt a formal review of the U.S. sovereign ratings and likely lead to a downgrade," Fitch said in June. Fitch maintains a "negative" outlook on the United States' AA A rating, meaning it's at risk of a cut.

Related: Treasury Secretary says markets too calm about debt ceiling

Moody's has the U.S. rated AAA with an outlook of "stable." Steven Hess, Moody's lead analyst for the United States, said the agency believes that even in the event of a debt ceiling breach, the government will prioritize interest payments and cut spending elsewhere.

"It's very likely that the AAA would not be there any more if they missed an interest payment," Hess added.

No one can predict exactly what the consequences of a missed payment would be, but analysts agree it's a terrifying prospect. Another downgrade alone, however, is unlikely to make much difference.

"At the end of the day, even with a downgrade, the U.S. Treasury is still the safest game in town," said Michael Brown, an economist at Wells Fargo (WFC, Fortune 500). Rates are also being held lower by the Federal Reserve's bond-buying program, he added.

New downgrades could raise borrowing costs years down the line, but "in the immediate term, I don't think you'd see a massive movement of rates," Brown said.

Some investment firms operate under guidelines that prohibit them from holding securities that aren't rated AAA by one, two or all three of the major rating agencies. They could therefore be forced to sell them following a downgrade, creating upward pressure on yields.

But among buyers of Treasuries, these firms are "very, very small relative to those that don't have a ratings threshold," Brothers said.

"There are ramifications if U.S. Treasury debt isn't AAA, but I don't think that would create a cascade of selling," he said.

First Published: September 30, 2013: 3:53 AM ET

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