S. 4214 (116th Congress) — Payroll tax credit for expenses associated with protecting employees from COVID–19
Summary
Senate bill 4214 of the 116th Congress, 2D Session, is a bill to provide a payroll tax credit for certain expenses associated with protecting employees from COVID–19. Portman introduced it on July 20, 2020, and it was referred to the Committee on Finance. Section 1, Healthy Workplace Tax Credit, allows an employer a credit against applicable employment taxes for each calendar quarter equal to 50 percent of the sum of qualified employee protection expenses and qualified workplace reconfiguration expenses. The applicable dollar limit is built from $1,000, $750, and $500 amounts multiplied by portions of the average number of full-time employees. The section applies only to amounts paid or incurred after March 12, 2020, and before January 1, 2021.
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“S. 4214 (116th Congress) — Payroll tax credit for expenses associated with protecting employees from COVID–19.”
Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/bills-bills-116s4214is-bills-116s4214is/
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II
116TH CONGRESS
2D SESSION
S. 4214
To provide a payroll tax credit for certain expenses associated with protecting
employees from COVID–19.
IN THE SENATE OF THE UNITED STATES
JULY 20, 2020
Mr. PORTMAN introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To provide a payroll tax credit for certain expenses
associated with protecting employees from COVID–19.
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. HEALTHY WORKPLACE TAX CREDIT.
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 50
7 percent of the sum of—
8 (1) the qualified employee protection expenses
9 paid or incurred by the employer during such cal-
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10 endar quarter, and
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1 (2) the qualified workplace reconfiguration ex-
2 penses paid or incurred by the employer during such
3 calendar quarter.
4 (b) LIMITATIONS AND REFUNDABILITY.—
5 (1) OVERALL DOLLAR LIMITATION ON CRED-
6 IT.—
7 (A) IN GENERAL.—The amount of the
8 credit allowed under subsection (a) with respect
9 to any employer for any calendar quarter shall
10 not exceed the excess (if any) of—
11 (i) the applicable dollar limit with re-
12 spect to such employer for such calendar
13 quarter, over
14 (ii) the aggregate credits allowed
15 under subsection (a) with respect to such
16 employer for all preceding calendar quar-
17 ters.
18 (B) APPLICABLE DOLLAR LIMIT.—The
19 term ‘‘applicable dollar limit’’ means, with re-
20 spect to any employer for any calendar quarter,
21 the sum of—
22 (i) $1,000, multiplied by so much of
23 the average number of full-time employees
24 (as determined for purposes of determining
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25 whether an employer is an applicable large
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1 employer for purposes of section
2 4980H(c)(2) of the Internal Revenue Code
3 of 1986, except that an individual shall not
4 be taken into account as an employee for
5 any period during which substantially all of
6 the services provided by such individual as
7 an employee are provided outside the
8 United States) employed by such employer
9 during such calendar quarter as does not
10 exceed 500, plus
11 (ii) $750, multiplied by so much of
12 such average number of full-time employ-
13 ees as exceeds 500 but does not exceed
14 1,000, plus
15 (iii) $500, multiplied by so much of
16 such average number of full-time employ-
17 ees as exceeds 1,000.
18 (2) CREDIT LIMITED TO EMPLOYMENT
19 TAXES.—The credit allowed by subsection (a) with
20 respect to any calendar quarter shall not exceed the
21 applicable employment taxes (reduced by any credits
22 allowed under subsections (e) and (f) of section
23 3111 of the Internal Revenue Code of 1986, sections
24 7001 and 7003 of the Families First Coronavirus
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25 Response Act, and section 2301 of the CARES Act)
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1 on the wages paid with respect to the employment
2 of all the employees of the employer for such cal-
3 endar quarter.
4 (3) REFUNDABILITY OF EXCESS CREDIT.—
5 (A) IN GENERAL.—If the amount of the
6 credit under subsection (a) exceeds the limita-
7 tion of paragraph (2) for any calendar quarter,
8 such excess shall be treated as an overpayment
9 that shall be refunded under sections 6402(a)
10 and 6413(b) of the Internal Revenue Code of
11 1986.
12 (B) TREATMENT OF PAYMENTS.—For pur-
13 poses of section 1324 of title 31, United States
14 Code, any amounts due to the employer under
15 this paragraph shall be treated in the same
16 manner as a refund due from a credit provision
17 referred to in subsection (b)(2) of such section.
18 (c) QUALIFIED EMPLOYEE PROTECTION EX-
19 PENSES.—For purposes of this section, the term ‘‘quali-
20 fied employee protection expenses’’ means amounts (other
21 than any qualified workplace reconfiguration expense)
22 paid or incurred by the employer for—
23 (1) testing employees of the employer for
24 COVID–19 (including on a periodic basis),
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1 (2) equipment to protect employees of the em-
2 ployer from contracting COVID–19, including
3 masks, gloves, and disinfectants, and
4 (3) cleaning products or services (whether pro-
5 vided by an employee of the taxpayer or a cleaning
6 service provider) related to preventing the spread of
7 COVID–19.
8 (d) QUALIFIED WORKPLACE RECONFIGURATION EX-
9 PENSES.—For purposes of this section—
10 (1) IN GENERAL.—The term ‘‘qualified work-
11 place reconfiguration expenses’’ means amounts paid
12 or incurred by the employer to design and recon-
13 figure retail space, work areas, break areas, or other
14 areas that employees or customers regularly use in
15 the ordinary course of the employer’s trade or busi-
16 ness if such design and reconfiguration—
17 (A) has a primary purpose of preventing
18 the spread of COVID–19,
19 (B) is with respect to an area that is lo-
20 cated in the United States and that is leased or
21 owned by the employer,
22 (C) is consistent with the ordinary use of
23 the property immediately before the reconfig-
24 uration,
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1 (D) is commensurate with the risks faced
2 by the employees or customers or is consistent
3 with recommendations made by the Centers for
4 Disease Control and Prevention or the Occupa-
5 tional Safety and Health Administration,
6 (E) is completed pursuant to a reconfig-
7 uration plan and no comparable reconfiguration
8 plan was in place before March 13, 2020, and
9 (F) is completed before January 1, 2021.
10 (2) REGULATIONS.—The Secretary shall pre-
11 scribe such regulations and other guidance as may
12 be necessary or appropriate to carry out the pur-
13 poses of this subsection, including guidance defining
14 primary purpose and reconfiguration plan.
15 (e) OTHER DEFINITIONS.—For purposes of this sec-
16 tion—
17 (1) APPLICABLE EMPLOYMENT TAXES.—The
18 term ‘‘applicable employment taxes’’ means the fol-
19 lowing:
20 (A) The taxes imposed under section
21 3111(a) of the Internal Revenue Code of 1986.
22 (B) So much of the taxes imposed under
23 section 3221(a) of such Code as are attrib-
24 utable to the rate in effect under section
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25 3111(a) of such Code.
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1 (2) COVID–19.—Except where the context
2 clearly indicates otherwise, any reference in this sec-
3 tion to COVID–19 shall be treated as including a
4 reference to the virus which causes COVID–19.
5 (3) SECRETARY.—The term ‘‘Secretary’’ means
6 the Secretary of the Treasury or the Secretary’s del-
7 egate.
8 (4) OTHER TERMS.—Any term used in this sec-
9 tion (other than subsection (b)(1)(B)) which is also
10 used in chapter 21 or 22 of the Internal Revenue
11 Code of 1986 shall have the same meaning as when
12 used in such chapter.
13 (f) CERTAIN GOVERNMENTAL EMPLOYERS.—This
14 section shall not apply to the Government of the United
15 States, the government of any State or political subdivi-
16 sion thereof, or any agency or instrumentality of any of
17 the foregoing.
18 (g) SPECIAL RULES.—
19 (1) AGGREGATION RULE.—All persons treated
20 as a single employer under subsection (a) or (b) of
21 section 52 of the Internal Revenue Code of 1986, or
22 subsection (m) or (o) of section 414 of such Code,
23 shall be treated as one employer for purposes of this
24 section.
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1 (2) DENIAL OF DOUBLE BENEFIT.—Rules simi-
2 lar to the rules of section 280C(a) of the Internal
3 Revenue Code of 1986 shall apply for purposes of
4 this section.
5 (3) THIRD-PARTY PAYORS.—Any credit allowed
6 under this section shall be treated as a credit de-
7 scribed in section 3511(d)(2) of such Code.
8 (4) ELECTION NOT TO HAVE SECTION APPLY.—
9 This section shall not apply with respect to any em-
10 ployer for any calendar quarter if such employer
11 elects (at such time and in such manner as the Sec-
12 retary may prescribe) not to have this section apply.
13 (h) TRANSFERS TO CERTAIN TRUST FUNDS.—There
14 are hereby appropriated to the Federal Old-Age and Sur-
15 vivors Insurance Trust Fund and the Federal Disability
16 Insurance Trust Fund established under section 201 of
17 the Social Security Act (42 U.S.C. 401) and the Social
18 Security Equivalent Benefit Account established under
19 section 15A(a) of the Railroad Retirement Act of 1974
20 (45 U.S.C. 14 231n–1(a)) amounts equal to the reduction
21 in revenues to the Treasury by reason of this section
22 (without regard to this subsection). Amounts appropriated
23 by the preceding sentence shall be transferred from the
24 general fund at such times and in such manner as to rep-
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25 licate to the extent possible the transfers which would have
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1 occurred to such Trust Fund or Account had this section
2 not been enacted.
3 (i) TREATMENT OF DEPOSITS.—The Secretary shall
4 waive any penalty under section 6656 of the Internal Rev-
5 enue Code of 1986 for any failure to make a deposit of
6 any applicable employment taxes if the Secretary deter-
7 mines that such failure was due to the reasonable anticipa-
8 tion of the credit allowed under this section.
9 (j) REGULATIONS AND GUIDANCE.—The Secretary
10 shall prescribe such regulations and other guidance as
11 may be necessary or appropriate to carry out the purposes
12 of this section, including—
13 (1) with respect to the application of the credit
14 under subsection (a) to third-party payors (including
15 professional employer organizations, certified profes-
16 sional employer organizations, or agents under sec-
17 tion 3504 of the Internal Revenue Code of 1986),
18 regulations or other guidance allowing such payors
19 to submit documentation necessary to substantiate
20 the amount of the credit allowed under subsection
21 (a), and
22 (2) regulations or other guidance to prevent
23 abusive transactions.
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1 (k) APPLICATION.—This section shall only apply to
2 amounts paid or incurred after March 12, 2020, and be-
3 fore January 1, 2021.
Æ
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