COVID-19 Employee Impact Survey

It’s no secret that the current coronavirus pandemic and subsequent business closures ordered by PA Governor Tom Wolf are having a devastating impact on businesses, employees, and municipalities in the state.

As of March 24, 2020, the PA Department of Labor and Industry had received a total of 540,000 new unemployment claims since March 16, when Wolf first announced the closure of all non-essential businesses (read “PA Unemployment Claims Skyrocket To 540,000”). There is no doubt that many residents of Newtown Township and others who work in Newtown are among those seeking benefits due to layoffs.

Impact on Newtown Township

Townships such a Newtown, which depend on Earned Income Tax (EIT) revenue, also face challenges. Given that many Newtown Township residents and non-residents who work in Newtown may be laid off for weeks, if not months, it is likely that Newtown will take a hit on EIT revenue in 2020. How much of a hit is uncertain at this time (see chart below).

*****What You Need to Know About EIT*****
EIT is a tax for general revenue purposes in the amount of 1% imposed on earned income including salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation received by residents of Newtown Township and by nonresidents of Newtown Township for work done or services performed or rendered in Newtown Township. This includes 1% of the net profits received from businesses, professions or other activities conducted by residents of Newtown Township and by nonresidents of Newtown Township. For Newtown, this tax represents 61% of the total revenue projected for 2020.
NOTE: 0.5% of Resident EIT goes to the township and 0.5% goes to Council Rock School District. The full 1% of Non-resident EIT goes to the township.

Also, Keystone Collections, which manages municipal and school tax administration, collects local EIT Taxes. Keystone extended the Individual filing deadlines to match the State and Federal date of July 15, 2020. This delay in collecting EIT will also negatively impact Newtown Township’s ability to carry out needed services.

How have YOU been impacted by COVID-19?

As a Newtown Township Supervisor I expect that I will be called upon to make critical decisions in the coming weeks in response to a possible dire financial impact on Newtown Township due to the Coronavirus pandemic and the emergency mitigation measures currently in place. Consequently, it is important that I get feedback from local residents and businesses that have been impacted by COVID-19.

To that end, I am hosting a COVID-19 Employee Impact Survey. I urge both Newtown residents and non-residents to TAKE THE SURVEY HERE: https://www.surveymonkey.com/r/6HTHQML

Some questions the survey asks include: What type of business are you employed or were employed at? How has the coronavirus pandemic affected your employment? Were you laid off, furloughed, ordered to work from home? Is you company open, closed, or operating at a reduced capacity? If you job has been negatively impacted by the coronavirus pandemic, how confident are you of being fully employed within the next several months?

Most importantly, what is your most pressing need right now and how can local government help you?

My COVID-19 Employee Impact Survey should take less than 5 minutes to complete. No identifying information is collected via this survey unless you opt-in to provide such information for purposes of follow-up or by subscribing to my email newsletter.

DISCLAIMER: This is not an official Newtown Township approved survey. Its purpose is solely to inform John Mack regarding this issue. I appreciate your participation during this difficult time.