H.R. 7837, SAFE Kids and Jobs Act
Summary
H.R. 7837 was introduced in the House of Representatives on July 29, 2020, by Lamb, for himself, Sánchez, and Fitzpatrick, and referred to the Committee on Ways and Means. It may be cited as the Supporting American Families, Employers, Kids and Jobs Act or the SAFE Kids and Jobs Act. Section 2 allows an employer a credit against applicable employment taxes for each calendar quarter equal to 7 percent of the qualified employee dependent care expenses paid by the employer. The expenses taken into account for any employee for any calendar quarter may not exceed $2,500.
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Cite this document
“H.R. 7837, SAFE Kids and Jobs Act.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116hr7837ih-bills-116hr7837ih/
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I
116TH CONGRESS
2D SESSION
H. R. 7837
To provide a payroll tax credit for certain employee dependent care expenses
paid by employers.
IN THE HOUSE OF REPRESENTATIVES
JULY 29, 2020
Mr. LAMB (for himself, Ms. SÁNCHEZ, and Mr. FITZPATRICK) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To provide a payroll tax credit for certain employee
dependent care 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 ‘‘Supporting American
5 Families, Employers, Kids and Jobs Act’’ or as the
6 ‘‘SAFE Kids and Jobs Act’’.
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1 SEC. 2. PAYROLL CREDIT FOR CERTAIN EMPLOYEE DE-
2 PENDENT CARE EXPENSES PAID BY EMPLOY-
3 ERS.
4 (a) IN GENERAL.—In the case of an employer, there
5 shall be allowed as a credit against applicable employment
6 taxes for each calendar quarter an amount equal to 30
7 percent of the qualified employee dependent care expenses
8 paid by such employer with respect to such calendar quar-
9 ter.
10 (b) LIMITATIONS AND REFUNDABILITY.—
11 (1) DOLLAR LIMITATION PER EMPLOYEE.—The
12 qualified employee dependent care expenses which
13 may be taken into account under subsection (a) with
14 respect to any employee for any calendar quarter
15 shall not exceed $2,500.
16 (2) CREDIT LIMITED TO CERTAIN EMPLOYMENT
17 TAXES.—The credit allowed by subsection (a) with
18 respect to any calendar quarter shall not exceed the
19 applicable employment taxes for such calendar quar-
20 ter (reduced by any credits allowed under sub-
21 sections (e) and (f) of section 3111 of such Code,
22 sections 7001 and 7003 of the Families First
23 Coronavirus Response Act, section 2301 of the
24 CARES Act, and section 4 of this Act, for such
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25 quarter) on the wages paid with respect to the em-
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1 ployment of all the employees of the employer for
2 such calendar quarter.
3 (3) REFUNDABILITY OF EXCESS CREDIT.—
4 (A) IN GENERAL.—If the amount of the
5 credit under subsection (a) exceeds the limita-
6 tion of paragraph (2) for any calendar quarter,
7 such excess shall be treated as an overpayment
8 that shall be refunded under sections 6402(a)
9 and 6413(b) of the Internal Revenue Code of
10 1986.
11 (B) TREATMENT OF PAYMENTS.—For pur-
12 poses of section 1324 of title 31, United States
13 Code, any amounts due to an employer under
14 this paragraph shall be treated in the same
15 manner as a refund due from a credit provision
16 referred to in subsection (b)(2) of such section.
17 (4) COORDINATION WITH GOVERNMENT
18 GRANTS.—The qualified employee dependent care
19 expenses taken into account under this section by
20 any employer shall be reduced by any amounts pro-
21 vided by any Federal, State, or local government for
22 purposes of making or reimbursing such expenses.
23 (c) QUALIFIED EMPLOYEE DEPENDENT CARE EX-
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24 PENSES.—For purposes of this section—
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1 (1) IN GENERAL.—The term ‘‘qualified em-
2 ployee dependent care expenses’’ means any amount
3 paid to or for the benefit of an employee in the em-
4 ployment of the employer if—
5 (A) such amount is dependent care assist-
6 ance (as defined in section 129(e)(1) of the In-
7 ternal Revenue Code of 1986); and
8 (B) the employer elects (at such time and
9 in such manner as the Secretary may provide)
10 to treat such amount as a qualified employee
11 dependent care expense.
12 (2) EXCLUSION OF AMOUNTS PAID THROUGH
13 SALARY REDUCTION ARRANGEMENTS.—Such term
14 shall not include any amount paid at the election of
15 the employee under a salary reduction arrangement.
16 (d) SPECIAL RULES; OTHER DEFINITIONS.—
17 (1) APPLICATION OF CERTAIN NON-DISCRIMINA-
18 TION RULES.—No credit shall be allowed under this
19 section to any employer for any calendar quarter if
20 qualified employee dependent care expenses are pro-
21 vided by such employer to employees for such cal-
22 endar quarter in a manner which discriminates in
23 favor of highly compensated individuals (within the
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24 meaning of section 125) as to eligibility for, or the
25 amount of, such benefit expenses.
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1 (2) DENIAL OF DOUBLE BENEFIT.—For pur-
2 poses of chapter 1 of such Code, no deduction or
3 credit (other than the credit allowed under this sec-
4 tion) shall be allowed for so much of qualified em-
5 ployee dependent care expenses as is equal to the
6 credit allowed under this section.
7 (3) THIRD-PARTY PAYORS.—Any credit allowed
8 under this section shall be treated as a credit de-
9 scribed in section 3511(d)(2) of such Code.
10 (4) APPLICABLE EMPLOYMENT TAXES.—For
11 purposes of this section, the term ‘‘applicable em-
12 ployment taxes’’ means the following:
13 (A) The taxes imposed under section
14 3111(a) of the Internal Revenue Code of 1986.
15 (B) So much of the taxes imposed under
16 section 3221(a) of such Code as are attrib-
17 utable to the rate in effect under section
18 3111(a) of such Code.
19 (5) SECRETARY.—For purposes of this section,
20 the term ‘‘Secretary’’ means the Secretary of the
21 Treasury or the Secretary’s delegate.
22 (6) CERTAIN TERMS.—
23 (A) IN GENERAL.—Any term used in this
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24 section which is also used in chapter 21 or 22
25 of such Code shall have the same meaning as
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1 when used in such chapter (as the case may
2 be).
3 (B) CERTAIN PROVISIONS NOT TAKEN
4 INTO ACCOUNT EXCEPT FOR PURPOSES OF LIM-
5 ITING CREDIT TO EMPLOYMENT TAXES.—For
6 purposes of subparagraph (A) (other than with
7 respect to subsection (b)(2)), section 3121(b) of
8 such Code shall be applied without regard to
9 paragraphs (1), (5), (6), (7), (8), (10), (13),
10 (18), (19), and (22) thereof (except with re-
11 spect to services performed in a penal institu-
12 tion by an inmate thereof) and section
13 3231(e)(1) shall be applied without regard to
14 the sentence that begins ‘‘Such term does not
15 include remuneration’’.
16 (e) CERTAIN GOVERNMENTAL EMPLOYERS.—
17 (1) IN GENERAL.—The credit under this section
18 shall not be allowed to the Federal Government or
19 any agency or instrumentality thereof.
20 (2) EXCEPTION.—Paragraph (1) shall not
21 apply to any organization described in section
22 501(c)(1) of the Internal Revenue Code of 1986 and
23 exempt from tax under section 501(a) of such Code.
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24 (f) TREATMENT OF DEPOSITS.—The Secretary shall
25 waive any penalty under section 6656 of such Code for
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1 any failure to make a deposit of applicable employment
2 taxes if the Secretary determines that such failure was due
3 to the anticipation of the credit allowed under this section.
4 (g) REGULATIONS.—The Secretary shall prescribe
5 such regulations or other guidance as may be necessary
6 to carry out the purposes of this section, including regula-
7 tions or other guidance—
8 (1) to allow the advance payment of the credit
9 determined under subsection (a), subject to the limi-
10 tations provided in this section, based on such infor-
11 mation as the Secretary shall require;
12 (2) to provide for the reconciliation of such ad-
13 vance payment with the amount of the credit at the
14 time of filing the return of tax for the applicable
15 quarter or taxable year;
16 (3) for recapturing the benefit of credits deter-
17 mined under this section in cases where there is a
18 subsequent adjustment to the credit determined
19 under subsection (a); and
20 (4) with respect to the application of the credit
21 to third-party payors (including professional em-
22 ployer organizations, certified professional employer
23 organizations, or agents under section 3504 of such
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24 Code), including to allow such payors to submit doc-
25 umentation necessary to substantiate eligibility for,
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1 and the amount of, the credit allowed under this sec-
2 tion.
3 (h) APPLICATION OF SECTION.—This section shall
4 apply only to qualified employee dependent care expenses
5 paid after the date of the enactment of this Act and before
6 January 1, 2021.
7 (i) TRANSFERS TO CERTAIN TRUST FUNDS.—There
8 are hereby appropriated to the Federal Old-Age and Sur-
9 vivors Insurance Trust Fund and the Federal Disability
10 Insurance Trust Fund established under section 201 of
11 the Social Security Act (42 U.S.C. 401) and the Social
12 Security Equivalent Benefit Account established under
13 section 15A(a) of the Railroad Retirement Act of 1974
14 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in
15 revenues to the Treasury by reason of this section (without
16 regard to this subsection). Amounts appropriated by the
17 preceding sentence shall be transferred from the general
18 fund at such times and in such manner as to replicate
19 to the extent possible the transfers which would have oc-
20 curred to such Trust Fund or Account had this section
21 not been enacted.
Æ
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