Keep Employees’ Earnings Protected Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 6920 To temporarily suspend payroll taxes during the emergency relating to COVID–19. IN THE HOUSE OF REPRESENTATIVES MAY 19, 2020 Mr. SPANO introduced the following bill; which was referred to the Committee on Ways and Means A BILL To temporarily suspend payroll taxes during the emergency relating to COVID–19. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Keep Employees’ 4 Earnings Protected Act of 2020’’. 5 SEC. 2. TEMPORARY SUSPENSION OF PAYROLL TAXES. 6 (a) IN GENERAL.—Notwithstanding any other provi- 7 sion of law— 8 (1) with respect to any taxable year which be- 9 gins in the payroll tax suspension period, the rate of 10 VerDate Sep 11 2014 01:21 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6920.IH H6920 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 6920 IH tax under section 1401(a) of the Internal Revenue 1 Code of 1986 shall be 0 percent, 2 (2) with respect to remuneration received for 3 pay periods ending during the payroll tax suspension 4 period, the rate of tax under 3101(a) of such Code 5 shall be 0 percent (including for purposes of deter- 6 mining the applicable percentage under sections 7 3201(a) and 3211(a)(1) of such Code), and 8 (3) with respect to remuneration paid for pay 9 periods ending during the payroll tax suspension pe- 10 riod, the rate of tax under section 3111(a) of such 11 Code shall be 0 percent (including for purposes of 12 determining the applicable percentage under section 13 3221(a) of such Code). 14 (b) PAYROLL TAX SUSPENSION PERIOD.—The term 15 ‘‘payroll tax suspension period’’ means the period begin- 16 ning on the date of the enactment of this Act and ending 17 either— 18 (1) 90 days later, or 19 (2) with the termination of the emergency in- 20 volving Federal primary responsibility determined to 21 exist by the President under the section 501(b) of 22 the Robert T. Stafford Disaster Relief and Emer- 23 gency Assistance Act (42 U.S.C. 5191(b)) with re- 24 spect to the Coronavirus Disease 2019 (COVID–19), 25 VerDate Sep 11 2014 01:21 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6920.IH H6920 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 6920 IH whichever is shorter. 1 (c) EMPLOYER NOTIFICATION.—The Secretary of the 2 Treasury (or the Secretary’s delegate) shall notify employ- 3 ers of the payroll tax suspension period in any manner 4 the Secretary (or the Secretary’s delegate) deems appro- 5 priate. 6 (d) TRANSFERS OF FUNDS.— 7 (1) TRANSFERS TO FEDERAL OLD-AGE AND 8 SURVIVORS INSURANCE TRUST FUND.—There are 9 hereby appropriated to the Federal Old-Age and 10 Survivors Trust Fund and the Federal Disability In- 11 surance Trust Fund established under section 201 12 of the Social Security Act (42 U.S.C. 401) amounts 13 equal to the reduction in revenues to the Treasury 14 by reason of the application of subsection (a). 15 Amounts appropriated by the preceding sentence 16 shall be transferred from the general fund at such 17 times and in such manner as to replicate to the ex- 18 tent possible the transfers which would have oc- 19 curred to such Trust Fund had such amendments 20 not been enacted. 21 (2) TRANSFERS TO SOCIAL SECURITY EQUIVA- 22 LENT BENEFIT ACCOUNT.— There are hereby appro- 23 priated to the Social Security Equivalent Benefit Ac- 24 count established under section 15A(a) of the Rail- 25 VerDate Sep 11 2014 01:21 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6920.IH H6920 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 6920 IH road Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 1 amounts equal to the reduction in revenues to the 2 Treasury by reason of the application of subsection 3 (a). Amounts appropriated by the preceding sentence 4 shall be transferred from the general fund at such 5 times and in such manner as to replicate to the ex- 6 tent possible the transfers which would have oc- 7 curred to such Account had such amendments not 8 been enacted. 9 (3) COORDINATION WITH OTHER FEDERAL 10 LAWS.—For purposes of applying any provision of 11 Federal law other than the provisions of the Internal 12 Revenue Code of 1986, the rate of tax in effect 13 under section 3101(a) of such Code shall be deter- 14 mined without regard to the reduction in such rate 15 under this section. 16 Æ VerDate Sep 11 2014 01:21 Jun 11, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H6920.IH H6920 pbinns on DSKJLVW7X2PROD with BILLS