Employer Assistance Coordination Act

Bill: 116-s-4268
Sponsor: full_name: Sen. Hassan, Margaret Wood [D-NH]
Introduced: 2020-07-22
Policy area: Taxation
Subjects: Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Employment taxes

Government lending and loan guarantees

Infectious and parasitic diseases

Small business

Wages and earnings
Latest action: action_date: 2020-07-22
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-07-22
action_desc: Introduced in Senate
text: <p><b>Employer Assistance Coordination Act</b></p> <p>This bill permits certain small employers who participate in the Payroll Protection Program established to assist such employers adversely affected by the COVID-19 (i.e., coronavirus disease 2019) public health emergency to also claim the refundable employee retention tax credit if their businesses have experienced a significant reduction in revenue or have closed pursuant to a government order. <e> The bill prohibits employers from using funds from both programs based upon the same wages paid to their employees.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4268 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.

1. Short title This Act may be cited as the Employer Assistance Coordination Act . 2. Improved coordination between paycheck protection program and employee retention tax credit (a) Amendment to paycheck protection program Section 1106(a)(8) of the CARES Act ( Public Law 116–136 ) is amended by inserting , except that such costs shall not include qualified wages taken into account in determining the credit allowed under section 2301 of this Act before the period at the end. (b) Amendments to employee retention tax credit (1) In general Section 2301(g) of the CARES Act ( Public Law 116–136 ) is amended to read as follows: (g) Election To not take certain wages into account (1) In general This section shall not apply to qualified wages paid by an eligible employer with respect to which such employer makes an election (at such time and in such manner as the Secretary may prescribe) to have this section not apply to such wages. (2) Coordination with paycheck protection program The Secretary, in consultation with the Administrator of the Small Business Administration, shall issue guidance providing that payroll costs paid or incurred during the covered period shall not fail to be treated as qualified wages under this section by reason of an election under paragraph (1) to the extent that a covered loan of the eligible employer is not forgiven by reason of a decision under section 1106(g). Terms used in the preceding sentence which are also used in section 1106 shall have the same meaning as when used in such section. . (2) Conforming amendments (A) Section 2301 of the CARES Act ( Public Law 116–136 ) is amended by striking subsection (j). (B) Section 2301(l) of the CARES Act ( Public Law 116–136 ) is amended by striking paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (c) Effective date The amendments made by this section shall take effect as if included in the provisions of the CARES Act ( Public Law 116–136 ) to which they relate.