,i #aafth ,,congress #b;d ,session ,h4 ,r4 #gjeh ,,in ,,the ,,house ,,of ,,representatives ,may #bh1 #bjbj,mr4 ,reed 7for himself1 ,mr4 ,gottheimer1 ,mr4 ,schweikert1 and ,mr4 ,cuellar7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to provide a payroll tax credit for certain bonuses paid to employees who worked continuously during the ,,covid-#ai pandemic4 #a4 ,short title ,this ,act may be cited as the ,rewarding ,american ,workers ,act of #bjbj4 #b4 ,payroll credit for bonuses paid to employees who worked continuously during the ,,covid-#ai pandemic 7a7 ,in general ,in the case of an employer1 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 #ajj percent of the qualified bonuses paid to eligible employees of such employer during such calendar quarter4 7b7 ,qualified bonus ,for the purposes of this section-- 7#a7 ,in general ,the term qualified bonus means1 with respect to any eligible employee of any employer1 a supplemental wage 7within the meaning of the rules and regulations under section #cdjb7 equal to-- 7,a7 in the case of an eligible employee whose annualized covered period wages do not exceed #ee1jjj1 an amount equal to the applicable percentage of the wages 7as defined in section #cdja7 paid by such employer to such employee during the covered period1 and 7,b7 in the case of an eligible employee whose annualized covered period wages exceed #ee1jjj but do not exceed #ii1jjj1 #fjj4 7#b7 ,applicable percentage ,the term applicable percentage means1 with respect to any eligible employee of any employer1 #cj percent reduced 7but not below zero7 by #j4a percent for each #ajj that the such employee's annualized covered period wages exceeds #cj1jjj4 7#c7 ,annualized covered period wages ,the term annualized covered period wages means1 with respect to any eligible employee of any employer1 the amount of wages 7as defined in section #cdja and determined without regard to any qualified bonuses7 which would have been paid to such employee by such employer during a #cfe-;day period if such employee were paid at the same rate during all of such period as such employee was paid during the covered period4 7c7 ,eligible employee ,for purposes of this section1 the term eligible employee means1 with respect to any employer1 any employee if-- 7#a7 such employee had taxes withheld by such employer under section #caja for the entirety of the covered period1 and 7#b7 such employee's annualized covered period wages do not exceed #ii1jjj4 7d7 ,covered period ,for purposes of this section1 the term covered period means the period beginning on ,march #ac1 #bjbj1 and ending on the earlier of ,july #ca1 #bjbj1 or the end of the ,national ,emergency ,concerning the ,novel ,coronavirus ,disease 7,,covid-#ai7 ,outbreak4 7e7 ,refundability 7#a7 ,credit limited to employment taxes ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes 7reduced by any credits allowed under subsections 7e7 and 7f7 of section #caaa of the ,internal ,revenue ,code of #aihf1 sections #gjja and #gjjc of the ,families ,first ,coronavirus ,response ,act1 and section #bcja of the ,,cares ,act7 on the wages paid with respect to the employment of all the employees of the eligible employer for such calendar quarter4 7#b7 ,refundability of excess credit 7,a7 ,in general ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#a7 for any calendar quarter1 such excess shall be treated as an overpayment that shall be refunded under sections #fdjb7;a7 and #fdac7;b7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,treatment of payments ,for purposes of section #acbd of title #ca1 ,united ,states ,code1 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 7b77#b7 of such section4 7f7 ,other definitions ,for purposes of this section-- 7#a7 ,applicable employment taxes ,the term applicable employment taxes means the following3 7,a7 ,the taxes imposed under section #caaa7;a7 of the ,internal ,revenue ,code of #aihf4 7,b7 ,so much of the taxes imposed under section #cbba7;a7 of such ,code as are attributable to the rate in effect under section #caaa7;a7 of such ,code4 7#b7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4 7#c7 ,other terms ,except as otherwise provided in this section1 any term used in this section which is also used in chapter #ba or #bb of the ,internal ,revenue ,code of #aihf shall have the same meaning as when used in such chapter4 7g7 ,aggregation rule ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb of the ,internal ,revenue ,code of #aihf1 or subsection 7m7 or 7o7 of section #dad of such ,code1 shall be treated as one employer for purposes of this section4 7h7 ,certain rules ,to apply ,for purposes of this section1 rules similar to the rules of sections #ea7;i77#a7 and #bhj;,c7a7 of the ,internal ,revenue ,code of #aihf shall apply4 7i7 ,election not ,to have section apply ,this section shall not apply with respect to any eligible employer for any calendar quarter if such employer elects 7at such time and in such manner as the ,secretary may prescribe7 not to have this section apply4 7j7 ,third-,party payors ,any credit allowed under this section shall be treated as a credit described in section #ceaa7;d77#b7 of such ,code4 7k7 ,transfers to ,federal ,old-,age and ,survivors ,insurance ,trust ,fund ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,insurance ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 and the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #ad #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of this section 7without regard to this subsection74 ,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 or ,account had this section not been enacted4 7l7 ,treatment of deposits ,the ,secretary shall waive any penalty under section #ffef of the ,internal ,revenue ,code of #aihf for any failure to make a deposit of any applicable employment taxes if the ,secretary determines that such failure was due to the reasonable anticipation of the credit allowed under this section4 7m7 ,regulations and guidance ,the ,secretary shall issue such forms1 instructions1 regulations1 and guidance as are necessary-- 7#a7 to allow the advance payment of the credit under subsection 7a71 subject to the limitations provided in this section1 based on such information as the ,secretary shall require1 7#b7 to provide for the reconciliation of such advance payment with the amount advanced at the time of filing the return of tax for the applicable calendar quarter or taxable year1 and 7#c7 with respect to the application of the credit under subsection 7a7 to third-party payors 7including professional employer organizations1 certified professional employer organizations1 or agents under section #cejd of the ,internal ,revenue ,code of #aihf71 including regulations or guidance allowing such payors to submit documentation necessary to substantiate the eligible employer status of employers that use such payors4