II 

116TH CONGRESS 

2D SESSION S. 4213 

To exclude from income and payroll taxes compensation received by frontline employees during the COVID–19 emergency. 

IN THE SENATE OF THE UNITED STATES 

JULY 20, 2020 

Ms. ERNST introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To exclude from income and payroll taxes compensation received by front-line employees during the COVID–19 

emergency. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Relief Not5 ing The Large Impact Of Our Nation’s Essential Employ6 ees (FRNT LINE) Act’’. 

7 SEC. 2. DEFINITIONS. 

8 For purposes of this Act: 


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•S 4213 IS

1 (1) COVID–19 FRONT-LINE EMPLOYEE.—The 

2 term ‘‘COVID–19 front-line employee’’ means an 

3 employee— 

4 (A) whose principal place of employment 

5 during the COVID–19 emergency period is on 

6 the employer’s premises or at a prescribed work 

7 place that is not home of the employee, and 

8 (B) who— 

9 (i) is identified as essential critical in10 frastructure workforce pursuant to the 

11 guidance issued on March 19, 2020, by 

12 Cybersecurity and Infrastructure Security 

13 Agency of the Department of Homeland 

14 Security (including any revisions to such 

15 guidance made after such date), 

16 (ii) performs restaurant and 

17 foodservice work, including carryout, drive18 thru, or food delivery work, requiring phys19 ical interaction with individuals or food 

20 products, or 

21 (iii) performs educational work, school 

22 nutrition work, and other work required to 

23 operate a school facility, including early 

24 childhood programs, preschool programs, 


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1 elementary and secondary education, and 

2 higher education. 

3 (2) COVID–19 EMERGENCY PERIOD.—The 

4 term ‘‘COVID–19 emergency period’’ means the pe5 riod— 

6 (A) beginning on April 1, 2020, and 

7 (B) ending on the earlier of— 

8 (i) the last day of the first month in 

9 which the emergency involving Federal pri10 mary responsibility determined to exist by 

11 the President under section 501(b) of the 

12 Robert T. Stafford Disaster Relief and 

13 Emergency Assistance Act (42 U.S.C. 

14 5191(b)) with respect to the Coronavirus 

15 Disease 2019 (COVID–19) is no longer in 

16 effect, or 

17 (ii) December 31, 2020. 

18 (3) OTHER TERMS.—Any term used in this Act 

19 which is used in chapter 2 of the Internal Revenue 

20 Code of 1986 shall have the meaning given such 

21 term under such chapter. 


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•S 4213 IS

1 SEC. 3. EXCLUSION FROM GROSS INCOME FOR CERTAIN 

2 COMPENSATION OF FRONT-LINE EMPLOYEES 

3 FOR ESSENTIAL INDUSTRIES DURING THE 

4 COVID–19 NATIONAL EMERGENCY. 

5 (a) IN GENERAL.—For purposes of the Internal Rev6 enue Code of 1986, gross income shall not include any 

7 wages received during the COVID–19 emergency period 

8 by an individual who is a COVID–19 front-line employee 

9 for employment as a COVID–19 front-line employee. 

10 (b) LIMITATION.—The amount of wages excluded 

11 from gross income under subsection (a) for any month 

12 shall not exceed $8,803.50 for any month during any part 

13 of which such COVID–19 front-line employee earned in14 come as an essential critical infrastructure employee. 

15 (c) SPECIAL RULE FOR CHILD TAX CREDIT AND

16 EARNED INCOME CREDIT.—For purposes of sections 24 

17 and 32 of the Internal Revenue Code of 1986, an taxpayer 

18 may elect to treat amounts excluded from gross income 

19 by reason of subsection (a) as earned income. 

20 (d) REPORTING.—Any employer that makes a pay21 ment described in subsection (a) during a calendar year 

22 shall include the amount of such payment as a separately 

23 stated item on any written statement required under sec24 tion 6051 of the Internal Revenue Code of 1986. 


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•S 4213 IS

1 SEC. 4. TEMPORARY SUSPENSION OF PAYROLL TAXES. 

2 (a) IN GENERAL.—Notwithstanding any other provi3 sion of law, with respect to remuneration received by a 

4 COVID–19 front-line employee for pay periods ending 

5 after the effective date of this Act and before the date 

6 described in section 2(3)(B), the rate of tax under 3101(a) 

7 of the Internal Revenue Code of 1986 shall be 0 percent 

8 (including for purposes of determining the applicable per9 centage under sections 3201(a) and 3211(a) of such 

10 Code). 

11 (b) LIMITATION.— 

12 (1) IN GENERAL.—Subsection (a) shall not 

13 apply to any COVID–19 front-line employee whose 

14 annual wages for the calendar year is expected to ex15 ceed $50,000. 

16 (2) GUIDANCE.—The Secretary shall prescribed 

17 regulations or other guidance for purposes of deter18 mining the amount of expected annual wages for 

19 nonsalaried employees, including for situations in 

20 which an employee expects annual wages in excess of 

21 the amount described in paragraph (1) from more 

22 than 1 employer. 

23 (c) EMPLOYER NOTIFICATION.—The Secretary of the 

24 Treasury shall notify employers of the payroll tax suspen25 sion period in any manner the Secretary deems appro26 priate. 


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1 (d) TRANSFERS OF FUNDS.— 

2 (1) TRANSFERS TO FEDERAL OLD-AGE AND

3 SURVIVORS INSURANCE TRUST FUND.—There are 

4 hereby appropriated to the Federal Old-Age and 

5 Survivors Trust Fund and the Federal Disability In6 surance Trust Fund established under section 201 

7 of the Social Security Act (42 U.S.C. 401) amounts 

8 equal to the reduction in revenues to the Treasury 

9 by reason of the application of section 4. Amounts 

10 appropriated by the preceding sentence shall be 

11 transferred from the general fund at such times and 

12 in such manner as to replicate to the extent possible 

13 the transfers which would have occurred to such 

14 Trust Fund had such amendments not been enacted. 

15 (2) TRANSFERS TO SOCIAL SECURITY EQUIVA16 LENT BENEFIT ACCOUNT.—There are hereby appro17 priated to the Social Security Equivalent Benefit Ac18 count established under section 15A(a) of the Rail19 road Retirement Act of 1974 (45 U.S.C. 231n–1(a)) 

20 amounts equal to the reduction in revenues to the 

21 Treasury by reason of the application of section 4. 

22 Amounts appropriated by the preceding sentence 

23 shall be transferred from the general fund at such 

24 times and in such manner as to replicate to the ex25 tent possible the transfers which would have ocVerDate Sep 11 2014 02:36 Jul 27, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S4213.IS S4213

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1 curred to such account had such amendments not 

2 been enacted. 

3 (e) COORDINATION WITH OTHER FEDERAL LAWS.— 

4 For purposes of applying any provision of Federal law 

5 other than the provisions of the Internal Revenue Code 

6 of 1986, the rate of tax in effect under section 3101(a) 

7 of such Code shall be determined without regard to the 

8 reduction in such rate under this section. 

Æ 


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