Rewarding American Workers Act of 2020
This bill allows employers a payroll tax credit for bonuses paid to employees whose wages did not exceed specified levels during the period beginning on March 13, 2020, and ending on the earlier of July 31, 2020, or the end of the COVID-19 (i.e., coronavirus disease 2019) emergency, and who worked for the entire period.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7058 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7058
To provide a payroll tax credit for certain bonuses paid to employees
who worked continuously during the COVID-19 pandemic.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 28, 2020
Mr. Reed (for himself, Mr. Gottheimer, Mr. Schweikert, and Mr. Cuellar)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To provide a payroll tax credit for certain bonuses paid to employees
who worked continuously during the COVID-19 pandemic.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rewarding American Workers Act of
2020''.
SEC. 2. PAYROLL CREDIT FOR BONUSES PAID TO EMPLOYEES WHO WORKED
CONTINUOUSLY DURING THE COVID-19 PANDEMIC.
(a) In General.--In the case of an employer, there shall be allowed
as a credit against applicable employment taxes for the calendar
quarter which includes the last day of the covered period an amount
equal to 100 percent of the qualified bonuses paid to eligible
employees of such employer during such calendar quarter.
(b) Qualified Bonus.--For the purposes of this section--
(1) In general.--The term ``qualified bonus'' means, with
respect to any eligible employee of any employer, a
supplemental wage (within the meaning of the rules and
regulations under section 3402) equal to--
(A) in the case of an eligible employee whose
annualized covered period wages do not exceed $55,000,
an amount equal to the applicable percentage of the
wages (as defined in section 3401) paid by such
employer to such employee during the covered period,
and
(B) in the case of an eligible employee whose
annualized covered period wages exceed $55,000 but do
not exceed $99,000, $600.
(2) Applicable percentage.--The term ``applicable
percentage'' means, with respect to any eligible employee of
any employer, 30 percent reduced (but not below zero) by 0.1
percent for each $100 that the such employee's annualized
covered period wages exceeds $30,000.
(3) Annualized covered period wages.--The term ``annualized
covered period wages'' means, with respect to any eligible
employee of any employer, the amount of wages (as defined in
section 3401 and determined without regard to any qualified
bonuses) which would have been paid to such employee by such
employer during a 365-day period if such employee were paid at
the same rate during all of such period as such employee was
paid during the covered period.
(c) Eligible Employee.--For purposes of this section, the term
``eligible employee'' means, with respect to any employer, any employee
if--
(1) such employee had taxes withheld by such employer under
section 3101 for the entirety of the covered period, and
(2) such employee's annualized covered period wages do not
exceed $99,000.
(d) Covered Period.--For purposes of this section, the term
``covered period'' means the period beginning on March 13, 2020, and
ending on the earlier of July 31, 2020, or the end of the National
Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak.
(e) Refundability.--
(1) Credit limited to employment taxes.--The credit allowed
by subsection (a) with respect to any calendar quarter shall
not exceed the applicable employment taxes (reduced by any
credits allowed under subsections (e) and (f) of section 3111
of the Internal Revenue Code of 1986, sections 7001 and 7003 of
the Families First Coronavirus Response Act, and section 2301
of the CARES Act) on the wages paid with respect to the
employment of all the employees of the eligible employer for
such calendar quarter.
(2) Refundability of excess credit.--
(A) In general.--If the amount of the credit under
subsection (a) exceeds the limitation of paragraph (1)
for any calendar quarter, such excess shall be treated
as an overpayment that shall be refunded under sections
6402(a) and 6413(b) of the Internal Revenue Code of
1986.
(B) Treatment of payments.--For purposes of section
1324 of title 31, United States Code, any amounts due
to the employer under this paragraph shall be treated
in the same manner as a refund due from a credit
provision referred to in subsection (b)(2) of such
section.
(f) Other Definitions.--For purposes of this section--
(1) Applicable employment taxes.--The term ``applicable
employment taxes'' means the following:
(A) The taxes imposed under section 3111(a) of the
Internal Revenue Code of 1986.
(B) So much of the taxes imposed under section
3221(a) of such Code as are attributable to the rate in
effect under section 3111(a) of such Code.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury or the Secretary's delegate.
(3) Other terms.--Except as otherwise provided in this
section, any term used in this section which is also used in
chapter 21 or 22 of the Internal Revenue Code of 1986 shall
have the same meaning as when used in such chapter.
(g) Aggregation Rule.--All persons treated as a single employer
under subsection (a) or (b) of section 52 of the Internal Revenue Code
of 1986, or subsection (m) or (o) of section 414 of such Code, shall be
treated as one employer for purposes of this section.
(h) Certain Rules To Apply.--For purposes of this section, rules
similar to the rules of sections 51(i)(1) and 280C(a) of the Internal
Revenue Code of 1986 shall apply.
(i) Election Not To Have Section Apply.--This section shall not
apply with respect to any eligible employer for any calendar quarter if
such employer elects (at such time and in such manner as the Secretary
may prescribe) not to have this section apply.
(j) Third-Party Payors.--Any credit allowed under this section
shall be treated as a credit described in section 3511(d)(2) of such
Code.
(k) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability Insurance
Trust Fund established under section 201 of the Social Security Act (42
U.S.C. 401) and the Social Security Equivalent Benefit Account
established under section 15A(a) of the Railroad Retirement Act of 1974
(45 U.S.C. 14 231n-1(a)) amounts equal to the reduction in revenues to
the Treasury by reason of this section (without regard to this
subsection). Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such manner as
to replicate to the extent possible the transfers which would have
occurred to such Trust Fund or Account had this section not been
enacted.
(l) Treatment of Deposits.--The Secretary shall waive any penalty
under section 6656 of the Internal Revenue Code of 1986 for any failure
to make a deposit of any applicable employment taxes if the Secretary
determines that such failure was due to the reasonable anticipation of
the credit allowed under this section.
(m) Regulations and Guidance.--The Secretary shall issue such
forms, instructions, regulations, and guidance as are necessary--
(1) to allow the advance payment of the credit under
subsection (a), subject to the limitations provided in this
section, based on such information as the Secretary shall
require,
(2) to provide for the reconciliation of such advance
payment with the amount advanced at the time of filing the
return of tax for the applicable calendar quarter or taxable
year, and
(3) with respect to the application of the credit under
subsection (a) to third-party payors (including professional
employer organizations, certified professional employer
organizations, or agents under section 3504 of the Internal
Revenue Code of 1986), including regulations or guidance
allowing such payors to submit documentation necessary to
substantiate the eligible employer status of employers that use
such payors.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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