Title: Keep Employees’ Earnings Protected Act of 2020
Policy area: Taxation

Summary:
Keep Employees' Earnings Protected Act of 2020
This bill allows employers to suspend payment of payroll taxes (i.e., employer and employee taxes and self-employment taxes) for the period beginning on the enactment of this bill and ending either 90 days later, or upon the termination of the COVID-19 (i.e., coronavirus disease 2019) emergency period, whichever is shorter. The bill authorizes transfers to specified Social Security trust funds to cover the loss of revenue to such funds resulting from this payroll tax suspension.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6920 Introduced in House (IH)]

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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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Keep Employees' Earnings Protected 
Act of 2020''.

SEC. 2. TEMPORARY SUSPENSION OF PAYROLL TAXES.

    (a) In General.--Notwithstanding any other provision of law--
            (1) with respect to any taxable year which begins in the 
        payroll tax suspension period, the rate of tax under section 
        1401(a) of the Internal Revenue Code of 1986 shall be 0 
        percent,
            (2) with respect to remuneration received for pay periods 
        ending during the payroll tax suspension period, the rate of 
        tax under 3101(a) of such Code shall be 0 percent (including 
        for purposes of determining the applicable percentage under 
        sections 3201(a) and 3211(a)(1) of such Code), and
            (3) with respect to remuneration paid for pay periods 
        ending during the payroll tax suspension period, the rate of 
        tax under section 3111(a) of such Code shall be 0 percent 
        (including for purposes of determining the applicable 
        percentage under section 3221(a) of such Code).
    (b) Payroll Tax Suspension Period.--The term ``payroll tax 
suspension period'' means the period beginning on the date of the 
enactment of this Act and ending either--
            (1) 90 days later, or
            (2) with the termination of the emergency involving Federal 
        primary responsibility determined to exist by the President 
        under the 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),
whichever is shorter.
    (c) Employer Notification.--The Secretary of the Treasury (or the 
Secretary's delegate) shall notify employers of the payroll tax 
suspension period in any manner the Secretary (or the Secretary's 
delegate) 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 subsection (a). 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 subsection (a). 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.
            (3) 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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