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Bill > HR6787


US HR6787

US HR6787
Providing Essentials for Frontline Workers Act


summary

Introduced
05/08/2020
In Committee
05/08/2020
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

To provide a payroll credit for certain pandemic-related employee benefit expenses paid by employers. This bill allows an employer a payroll tax credit for certain pandemic-related employee benefit expenses paid by such employer after March 12, 2020, and before January 1, 2021. The amount of such credit is 50% of the pandemic-related expenses of essential employees and 30% for other employees. The amount of expenses taken into account for purposes of the credit for any employee may not exceed $5,000 in any calendar quarter. The bill defines qualified pandemic-related employee benefit expenses as amounts paid to an employee that are excludible from gross income as disaster relief payments related to COVID-19 (i.e., coronavirus disease 2019) and that the employee has elected to treat as a pandemic-related expense. The credit is not allowed to the federal government or its agencies, except for tax-exempt organizations.

AI Summary

This bill allows employers to claim a payroll tax credit for certain pandemic-related employee benefit expenses paid after March 12, 2020, and before January 1, 2021. The credit is equal to 50% of the expenses for "essential employees" and 30% for other employees, up to $5,000 per employee per quarter. The credit can be claimed against the employer's share of Social Security and Medicare taxes, and any excess credit is refundable. The bill defines "essential employees" as those whose work is deemed essential by the Cybersecurity and Infrastructure Security Agency, and it includes provisions to prevent discrimination in the provision of the benefits and to ensure that employers do not receive a double tax benefit.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Referred to the House Committee on Ways and Means. (on 05/08/2020)

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