Title: Financial Relief Noting The Large Impact Of Our Nation’s Essential Employees (FRNT LINE) Act
Policy area: Taxation

Summary:
Financial Relief Noting The Large Impact Of Our Nation's Essential Employees (FRNT LINE) Act
This bill excludes from gross income wages of certain front-line employees during the COVID-19 (i.e., coronavirus disease 2019) emergency period (the period beginning on April 1, 2020, and ending on the earlier of the last day of the first month in which the COVID-19 emergency is no longer in effect, or December 31, 2020). The bill also suspends payment of payroll taxes during the emergency period for employees earning $50,000 or less.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4213 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4213

   To exclude from income and payroll taxes compensation received by 
          front-line 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Relief Noting The Large 
Impact Of Our Nation's Essential Employees (FRNT LINE) Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Covid-19 front-line employee.--The term ``COVID-19 
        front-line employee'' means an employee--
                    (A) whose principal place of employment during the 
                COVID-19 emergency period is on the employer's premises 
                or at a prescribed work place that is not home of the 
                employee, and
                    (B) who--
                            (i) is identified as essential critical 
                        infrastructure workforce pursuant to the 
                        guidance issued on March 19, 2020, by 
                        Cybersecurity and Infrastructure Security 
                        Agency of the Department of Homeland Security 
                        (including any revisions to such guidance made 
                        after such date),
                            (ii) performs restaurant and foodservice 
                        work, including carryout, drive-thru, or food 
                        delivery work, requiring physical interaction 
                        with individuals or food products, or
                            (iii) performs educational work, school 
                        nutrition work, and other work required to 
                        operate a school facility, including early 
                        childhood programs, preschool programs, 
                        elementary and secondary education, and higher 
                        education.
            (2) COVID-19 emergency period.--The term ``COVID-19 
        emergency period'' means the period--
                    (A) beginning on April 1, 2020, and
                    (B) ending on the earlier of--
                            (i) the last day of the first month in 
                        which the emergency involving Federal primary 
                        responsibility determined to exist by the 
                        President under section 501(b) of the Robert T. 
                        Stafford Disaster Relief and Emergency 
                        Assistance Act (42 U.S.C. 5191(b)) with respect 
                        to the Coronavirus Disease 2019 (COVID-19) is 
                        no longer in effect, or
                            (ii) December 31, 2020.
            (3) Other terms.--Any term used in this Act which is used 
        in chapter 2 of the Internal Revenue Code of 1986 shall have 
        the meaning given such term under such chapter.

SEC. 3. EXCLUSION FROM GROSS INCOME FOR CERTAIN COMPENSATION OF FRONT-
              LINE EMPLOYEES FOR ESSENTIAL INDUSTRIES DURING THE COVID-
              19 NATIONAL EMERGENCY.

    (a) In General.--For purposes of the Internal Revenue Code of 1986, 
gross income shall not include any wages received during the COVID-19 
emergency period by an individual who is a COVID-19 front-line employee 
for employment as a COVID-19 front-line employee.
    (b) Limitation.--The amount of wages excluded from gross income 
under subsection (a) for any month shall not exceed $8,803.50 for any 
month during any part of which such COVID-19 front-line employee earned 
income as an essential critical infrastructure employee.
    (c) Special Rule for Child Tax Credit and Earned Income Credit.--
For purposes of sections 24 and 32 of the Internal Revenue Code of 
1986, an taxpayer may elect to treat amounts excluded from gross income 
by reason of subsection (a) as earned income.
    (d) Reporting.--Any employer that makes a payment described in 
subsection (a) during a calendar year shall include the amount of such 
payment as a separately stated item on any written statement required 
under section 6051 of the Internal Revenue Code of 1986.

SEC. 4. TEMPORARY SUSPENSION OF PAYROLL TAXES.

    (a) In General.--Notwithstanding any other provision of law, with 
respect to remuneration received by a COVID-19 front-line employee for 
pay periods ending after the effective date of this Act and before the 
date described in section 2(3)(B), the rate of tax under 3101(a) of the 
Internal Revenue Code of 1986 shall be 0 percent (including for 
purposes of determining the applicable percentage under sections 
3201(a) and 3211(a) of such Code).
    (b) Limitation.--
            (1) In general.--Subsection (a) shall not apply to any 
        COVID-19 front-line employee whose annual wages for the 
        calendar year is expected to exceed $50,000.
            (2) Guidance.--The Secretary shall prescribed regulations 
        or other guidance for purposes of determining the amount of 
        expected annual wages for nonsalaried employees, including for 
        situations in which an employee expects annual wages in excess 
        of the amount described in paragraph (1) from more than 1 
        employer.
    (c) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax suspension period in any manner the 
Secretary deems appropriate.
    (d) Transfers of Funds.--
            (1) Transfers to federal old-age and survivors insurance 
        trust fund.--There are hereby appropriated to the Federal Old-
        Age and Survivors Trust Fund and the Federal Disability 
        Insurance Trust Fund established under section 201 of the 
        Social Security Act (42 U.S.C. 401) amounts equal to the 
        reduction in revenues to the Treasury by reason of the 
        application of section 4. Amounts appropriated by the preceding 
        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 had 
        such amendments not been enacted.
            (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social Security 
        Equivalent Benefit Account established under section 15A(a) of 
        the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the application of section 4. Amounts appropriated by 
        the preceding 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 
        account had such amendments not been enacted.
    (e) Coordination With Other Federal Laws.--For purposes of applying 
any provision of Federal law other than the provisions of the Internal 
Revenue Code of 1986, the rate of tax in effect under section 3101(a) 
of such Code shall be determined without regard to the reduction in 
such rate under this section.
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