I 
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 Com-
mittee 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 Representa-
tives 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’’. 
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SEC. 2. PAYROLL CREDIT FOR BONUSES PAID TO EMPLOY-
EES 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 appli-
cable 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. 
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(2) APPLICABLE PERCENTAGE.—The term ‘‘ap-
plicable percentage’’ means, with respect to any eli-
gible 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 em-
ployer, the amount of wages (as defined in section 
3401 and determined without regard to any quali-
fied 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 sec-
tion, 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. 
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(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 limita-
tion 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. 
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(B) TREATMENT OF PAYMENTS.—For pur-
poses 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 sec-
tion— 
(1) APPLICABLE
EMPLOYMENT
TAXES.—The 
term ‘‘applicable employment taxes’’ means the fol-
lowing: 
(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 attrib-
utable 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 del-
egate. 
(3) OTHER TERMS.—Except as otherwise pro-
vided in this section, any term used in this section 
which is also used in chapter 21 or 22 of the Inter-
nal Revenue Code of 1986 shall have the same 
meaning as when used in such chapter. 
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(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 em-
ployer for any calendar quarter if such employer elects (at 
such time and in such manner as the Secretary may pre-
scribe) 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 SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors Insur-
ance 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. 
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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 pre-
ceding 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 Rev-
enue Code of 1986 for any failure to make a deposit of 
any applicable employment taxes if the Secretary deter-
mines that such failure was due to the reasonable anticipa-
tion of the credit allowed under this section. 
(m) REGULATIONS AND GUIDANCE.—The Secretary 
shall issue such forms, instructions, regulations, and guid-
ance as are necessary— 
(1) to allow the advance payment of the credit 
under subsection (a), subject to the limitations pro-
vided in this section, based on such information as 
the Secretary shall require, 
(2) to provide for the reconciliation of such ad-
vance payment with the amount advanced at the 
time of filing the return of tax for the applicable cal-
endar quarter or taxable year, and 
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