Bert's Alerts—Sept. 4, 2020

Last week, the United States Federal Government announced a program designed to help American workers who have been negatively financially impacted by COVID19. Examples of this type of impact might be through loss of employment, lay-offs and/or furlough.  

The program is designed to allow a person, in partnership with their employer, defer their federal tax withholding from now through the end of the calendar year. After the end of the year, the person (you) would be required to catch up on those withholdings within the first four (4) months of the year (2021), meaning there would be a substantially larger portion of federal tax withheld (up to double the normal amount) until the amount you chose to defer was repaid in full.  

Given the intent of the program is to give an option to persons who have been furloughed or laid off, CWI has opted not to participate based on the following: 

1. CWI has not levied furloughs of employees nor layoffs due to COVID and has no immediate plans to explore this action at this time.
2. The program is limited to a finite segment of earners who must fall within certain earning guidelines and is time-limited
3. The impact to the CWI payroll department (a department of one person) is substantial with federal compliance, tracking and other requirements.
4. A substantial fear that employees would be faced with significant hardships with repayment of deferred taxes, thus compounding the negative impacts of the action.  

CWI remains solidly committed to fiscal sustainability throughout not only COVID and the associated efforts underway currently to provide a safe environment for our students, faculty and staff, but also into the future.  

Bert