H.R. 6787, Providing Essentials for Frontline Workers Act
Summary
H. R. 6787 was introduced in the House of Representatives on May 8, 2020 by Ms. Sánchez and referred to the Committee on Ways and Means. The bill may be cited as the Providing Essentials for Frontline Workers Act. Section 2 allows an employer a quarterly credit against applicable employment taxes equal to the applicable percentage of qualified pandemic-related employee benefit expenses paid by the employer. The expenses that may be taken into account for any employee for a calendar quarter cannot exceed $5,000. Any excess credit is treated as an overpayment to be refunded.
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Cite this document
“H.R. 6787, Providing Essentials for Frontline Workers Act.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr6787ih-bills-116hr6787ih/
, SHA-256 145ef738ce2f4fa3c3edd1e5f273c8905be7115b24a62aaa312e44d1eef75c3c.Full text
I
116TH CONGRESS
2D SESSION
H. R. 6787
To provide a payroll credit for certain pandemic-related employee benefit
expenses paid by employers.
IN THE HOUSE OF REPRESENTATIVES
MAY 8, 2020
Ms. SÁNCHEZ introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To provide a payroll credit for certain pandemic-related
employee benefit expenses paid by employers.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Providing Essentials
5 for Frontline Workers Act’’.
6 SEC. 2. PAYROLL CREDIT FOR CERTAIN PANDEMIC-RE-
7 LATED EMPLOYEE BENEFIT EXPENSES PAID
8 BY EMPLOYERS.
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9 (a) IN GENERAL.—In the case of an employer, there
10 shall be allowed as a credit against applicable employment
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2
1 taxes for each calendar quarter an amount equal to the
2 applicable percentage of the qualified pandemic-related
3 employee benefit expenses paid by such employer with re-
4 spect to such calendar quarter.
5 (b) LIMITATIONS AND REFUNDABILITY.—
6 (1) DOLLAR LIMITATION PER EMPLOYEE.—The
7 qualified pandemic-related employee benefit expenses
8 which may be taken into account under subsection
9 (a) with respect to any employee for any calendar
10 quarter shall not exceed $5,000.
11 (2) CREDIT LIMITED TO CERTAIN EMPLOYMENT
12 TAXES.—The credit allowed by subsection (a) with
13 respect to any calendar quarter shall not exceed the
14 applicable employment taxes for such calendar quar-
15 ter (reduced by any credits allowed under sub-
16 sections (e) and (f) of section 3111 of such Code,
17 sections 7001 and 7003 of the Families First
18 Coronavirus Response Act, and section 2301 of the
19 CARES Act, for such quarter) on the wages paid
20 with respect to the employment of all the employees
21 of the employer for such calendar quarter.
22 (3) REFUNDABILITY OF EXCESS CREDIT.—
23 (A) IN GENERAL.—If the amount of the
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24 credit under subsection (a) exceeds the limita-
25 tion of paragraph (2) for any calendar quarter,
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1 such excess shall be treated as an overpayment
2 that shall be refunded under sections 6402(a)
3 and 6413(b) of the Internal Revenue Code of
4 1986.
5 (B) TREATMENT OF PAYMENTS.—For pur-
6 poses of section 1324 of title 31, United States
7 Code, any amounts due to an employer under
8 this paragraph shall be treated in the same
9 manner as a refund due from a credit provision
10 referred to in subsection (b)(2) of such section.
11 (c) QUALIFIED PANDEMIC-RELATED EMPLOYEE
12 BENEFIT EXPENSES.—For purposes of this section, the
13 term ‘‘qualified pandemic-related employee benefit ex-
14 penses’’ means any amount paid to or for the benefit of
15 an employee in the employment of the employer if—
16 (1) such amount is excludible from the gross in-
17 come of the employee under section 139 of the Inter-
18 nal Revenue Code of 1986 by reason of being a
19 qualified disaster relief payment described in sub-
20 section (b)(1) of such section with respect to a quali-
21 fied disaster described in subsection (c)(2) of such
22 section which was declared by reason of COVID-19,
23 and
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24 (2) the employer elects (at such time and in
25 such manner as the Secretary may provide) to treat
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1 such amount as a qualified pandemic-related em-
2 ployee benefit expense.
3 (d) APPLICABLE PERCENTAGE.—For purposes of
4 this section—
5 (1) IN GENERAL.—The term ‘‘applicable per-
6 centage’’ means—
7 (A) 50 percent, in the case of qualified
8 pandemic-related employee benefit expenses
9 paid with respect to an essential employee, and
10 (B) 30 percent, in any other case.
11 (2) ESSENTIAL EMPLOYEE.—The term ‘‘essen-
12 tial employee’’ means, with respect to any employer
13 for any calendar quarter, any employee of such em-
14 ployer if a substantial portion of the services per-
15 formed by such employee for such employer during
16 such calendar quarter are essential work.
17 (3) ESSENTIAL WORK.—Not later than 30 days
18 after the date of the enactment of this Act, the Di-
19 rector of the Cybersecurity and Infrastructure Secu-
20 rity Agency shall issue a definition of essential work
21 for the purposes of this section. In defining the term
22 ‘‘essential work’’, the Cybersecurity and Infrastruc-
23 ture Security Agency shall take into consideration
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24 its April 17th ‘‘Advisory Memorandum on Identifica-
25 tion of Essential Critical Infrastructure Workers
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1 During Covid-19 Response’’ and shall solicit public
2 input.
3 (e) SPECIAL RULES; OTHER DEFINITIONS.—
4 (1) APPLICATION OF CERTAIN NON-DISCRIMINA-
5 TION RULES.—No credit shall be allowed under this
6 section to any employer for any calendar quarter if
7 qualified pandemic-related employee benefit expenses
8 are provided by such employer to employees for such
9 calendar quarter in a manner which discriminates in
10 favor of highly compensated individuals (within the
11 meaning of section 125) as to eligibility for, or the
12 amount of, such benefit expenses. An employer may
13 elect with respect to any calendar quarter to apply
14 this paragraph separately with respect to essential
15 employees and with respect to all other employees.
16 (2) DENIAL OF DOUBLE BENEFIT.—For pur-
17 poses of chapter 1 of such Code, no deduction or
18 credit (other than the credit allowed under this sec-
19 tion) shall be allowed for so much of qualified pan-
20 demic-related employee benefit expenses as is equal
21 to the credit allowed under this section.
22 (3) THIRD PARTY PAYORS.—Any credit allowed
23 under this section shall be treated as a credit de-
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24 scribed in section 3511(d)(2) of such Code.
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1 (4) APPLICABLE EMPLOYMENT TAXES.—For
2 purposes of this section, the term ‘‘applicable em-
3 ployment taxes’’ means the following:
4 (A) The taxes imposed under section
5 3111(a) of the Internal Revenue Code of 1986.
6 (B) So much of the taxes imposed under
7 section 3221(a) of such Code as are attrib-
8 utable to the rate in effect under section
9 3111(a) of such Code.
10 (5) SECRETARY.—For purposes of this section,
11 the term ‘‘Secretary’’ means the Secretary of the
12 Treasury or the Secretary’s delegate.
13 (6) CERTAIN TERMS.—
14 (A) IN GENERAL.—Any term used in this
15 section which is also used in chapter 21 or 22
16 of such Code shall have the same meaning as
17 when used in such chapter (as the case may
18 be).
19 (B) CERTAIN PROVISIONS NOT TAKEN
20 INTO ACCOUNT EXCEPT FOR PURPOSES OF LIM-
21 ITING CREDIT TO EMPLOYMENT TAXES.—For
22 purposes of subparagraph (A) (other than with
23 respect to subsection (b)(2)), section 3121(b) of
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24 such Code shall be applied without regard to
25 paragraphs (1), (5), (6), (7), (8), (10), (13),
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1 (18), (19), and (22) thereof (except with re-
2 spect to services performed in a penal institu-
3 tion by an inmate thereof) and section
4 3231(e)(1) shall be applied without regard to
5 the sentence that begins ‘‘Such term does not
6 include remuneration’’.
7 (f) CERTAIN GOVERNMENTAL EMPLOYERS.—
8 (1) IN GENERAL.—The credit under this section
9 shall not be allowed to the Federal Government or
10 any agency or instrumentality thereof.
11 (2) EXCEPTION.—Paragraph (1) shall not
12 apply to any organization described in section
13 501(c)(1) of the Internal Revenue Code of 1986 and
14 exempt from tax under section 501(a) of such Code.
15 (g) TREATMENT OF DEPOSITS.—The Secretary shall
16 waive any penalty under section 6656 of such Code for
17 any failure to make a deposit of applicable employment
18 taxes if the Secretary determines that such failure was due
19 to the anticipation of the credit allowed under this section.
20 (h) REGULATIONS.—The Secretary shall prescribe
21 such regulations or other guidance as may be necessary
22 to carry out the purposes of this section, including regula-
23 tions or other guidance—
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24 (1) to allow the advance payment of the credit
25 determined under subsection (a), subject to the limi-
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1 tations provided in this section, based on such infor-
2 mation as the Secretary shall require,
3 (2) to provide for the reconciliation of such ad-
4 vance payment with the amount of the credit at the
5 time of filing the return of tax for the applicable
6 quarter or taxable year,
7 (3) for recapturing the benefit of credits deter-
8 mined under this section in cases where there is a
9 subsequent adjustment to the credit determined
10 under subsection (a), and
11 (4) with respect to the application of the credit
12 to third party payors (including professional em-
13 ployer organizations, certified professional employer
14 organizations, or agents under section 3504 of such
15 Code), including to allow such payors to submit doc-
16 umentation necessary to substantiate eligibility for,
17 and the amount of, the credit allowed under this sec-
18 tion.
19 (i) APPLICATION OF SECTION.—This section shall
20 apply only to qualified pandemic-related employee benefit
21 expenses paid after March 12, 2020, and before January
22 1, 2021.
23 (j) TRANSFERS TO CERTAIN TRUST FUNDS.—There
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24 are hereby appropriated to the Federal Old-Age and Sur-
25 vivors Insurance Trust Fund and the Federal Disability
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1 Insurance Trust Fund established under section 201 of
2 the Social Security Act (42 U.S.C. 401) and the Social
3 Security Equivalent Benefit Account established under
4 section 15A(a) of the Railroad Retirement Act of 1974
5 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in
6 revenues to the Treasury by reason of this section (without
7 regard to this subsection). Amounts appropriated by the
8 preceding sentence shall be transferred from the general
9 fund at such times and in such manner as to replicate
10 to the extent possible the transfers which would have oc-
11 curred to such Trust Fund or Account had this section
12 not been enacted.
Æ
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