Employer Assistance Coordination Act

II 116TH CONGRESS 2D SESSION S. 4268 To improve coordination between the paycheck protection program and employee retention tax credit. IN THE SENATE OF THE UNITED STATES JULY 22, 2020 Ms. HASSAN (for herself and Mr. BURR) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To improve coordination between the paycheck protection program and employee retention tax credit. 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 ‘‘Employer Assistance 4 Coordination Act’’. 5 SEC. 2. IMPROVED COORDINATION BETWEEN PAYCHECK 6 PROTECTION PROGRAM AND EMPLOYEE RE- 7 TENTION TAX CREDIT. 8 (a) AMENDMENT TO PAYCHECK PROTECTION PRO- 9 GRAM.—Section 1106(a)(8) of the CARES Act (Public 10 VerDate Sep 11 2014 05:32 Aug 05, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S4268.IS S4268 kjohnson on DSK79L0C42PROD with BILLS 2 •S 4268 IS Law 116–136) is amended by inserting ‘‘, except that such 1 costs shall not include qualified wages taken into account 2 in determining the credit allowed under section 2301 of 3 this Act’’ before the period at the end. 4 (b) AMENDMENTS TO EMPLOYEE RETENTION TAX 5 CREDIT.— 6 (1) IN GENERAL.—Section 2301(g) of the 7 CARES Act (Public Law 116–136) is amended to 8 read as follows: 9 ‘‘(g) ELECTION TO NOT TAKE CERTAIN WAGES 10 INTO ACCOUNT.— 11 ‘‘(1) IN GENERAL.—This section shall not apply 12 to qualified wages paid by an eligible employer with 13 respect to which such employer makes an election 14 (at such time and in such manner as the Secretary 15 may prescribe) to have this section not apply to such 16 wages. 17 ‘‘(2) COORDINATION WITH PAYCHECK PROTEC- 18 TION PROGRAM.—The Secretary, in consultation 19 with the Administrator of the Small Business Ad- 20 ministration, shall issue guidance providing that 21 payroll costs paid or incurred during the covered pe- 22 riod shall not fail to be treated as qualified wages 23 under this section by reason of an election under 24 paragraph (1) to the extent that a covered loan of 25 VerDate Sep 11 2014 05:32 Aug 05, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4268.IS S4268 kjohnson on DSK79L0C42PROD with BILLS 3 •S 4268 IS the eligible employer is not forgiven by reason of a 1 decision under section 1106(g). Terms used in the 2 preceding sentence which are also used in section 3 1106 shall have the same meaning as when used in 4 such section.’’. 5 (2) CONFORMING AMENDMENTS.— 6 (A) Section 2301 of the CARES Act (Pub- 7 lic Law 116–136) is amended by striking sub- 8 section (j). 9 (B) Section 2301(l) of the CARES Act 10 (Public Law 116–136) is amended by striking 11 paragraph (3) and by redesignating paragraphs 12 (4) and (5) as paragraphs (3) and (4), respec- 13 tively. 14 (c) EFFECTIVE DATE.—The amendments made by 15 this section shall take effect as if included in the provisions 16 of the CARES Act (Public Law 116–136) to which they 17 relate. 18 Æ VerDate Sep 11 2014 05:32 Aug 05, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S4268.IS S4268 kjohnson on DSK79L0C42PROD with BILLS