,,ii #aaf? ,,congress #a/ ,session ,s4 #bai ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,janu>y #bd1 #bjai,mr4 ,br[n 7= himself & ,mr4 ,durb97 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to impose an excise tax on employ]s ) l[-wage employees4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,corporate ,freeload] ,fee ,act4 #b4 ,imposition ( excise tax on corporations ) l[-wage employees 7a7 ,9 g5]al ,subtitle ,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ aft] *apt] #cf ! foll[+ new *apt]3 #cg ,corporate responsibility tax ,sec4 #deaa4 ,imposition ( tax4 #deaa4 ,imposition ( tax 7a7 ,9 g5]al ,9 ! case ( an applicable employ] :o employs a l[-wage employee dur+ ! cal5d> ye>1 !re is impos$ a tax equal to ! applicable p]c5tage ( ! aggregate am\nt ( wages paid by ! applicable employ] ) respect to employm5t ( all employees ( ! employ] dur+ ! cal5d> ye>4 7b7 ,applicable employ]2 l[-,wage employee ,= purposes ( ?is section-- 7#a7 ,applicable employ] 7,a7 ,9 g5]al ,! t]m applicable employ] means1 ) respect to any cal5d> ye>1 any employ] :o 0 requir$ to make deposits ( taxes "u *apt]s #ba & #bd 7or :o w\ld h be5 requir$ to make su* deposits if ! rules ( subp>agraph 7,c7 appli$ = su* purposes7 by ! close ( ! next day = p]iods aggregat+ m ?an #ahj days dur+ ! prec$+ cal5d> ye>4 7,b7 ,exception ,su* t]m %all n include a ,f$]al or o!r gov]nm5tal entity or a *ur* or qualifi$ *ur* organization 7z su* t]ms are def9$ 9 section #caba7w77#c774 7,c7 ,aggregation rules ,! rules ( subsections 7b71 7c71 7m71 & 7o7 ( section #dad %all apply = purposes ( ?is section1 except t 9 apply+ subsections 7b7 & 7c7 ( su* section1 ! phrase m ?an #ej p]c5t %all be sub/itut$ = ! phrase m ?an #hj p]c5t ea* place x appe>s4 7#b7 ,l[-wage employee 7,a7 ,9 g5]al ,! t]m l[-wage employee means any employee :o receives wages f an applicable employ] dur+ ! cal5d> ye> 9 an am\nt less ?an #bah p]c5t ( ! ,f$]al pov]ty l9e 7)9 ! mean+ ( section #baaj7;c77#e7 ( ! ,social ,security ,act7 = an individual4 ,rules simil> to ! rules ( section #cf;,b7d77#c77;,b7 %all apply = purposes ( ?is subp>agraph4 7,b7 ,employees employ$ = less ?an entire ye> ,9 ! case ( any employee employ$ by an applicable taxpay] = less ?an ! entire cal5d> ye>1 ! am\nt describ$ 9 subp>agraph 7,a7 %all be r$uc$ by an am\nt :i* be>s ! same ratio to su* am\nt z-- 7i7 ! numb] ( weeks dur+ ! cal5d> ye> 9 :i* su* individual 0 n an employee ( su* applicable employ]1 be>s to 7ii7 #eb4 7c7 ,applicable p]c5tage ,= purposes ( subsection 7a7-- 7#a7 ,9 g5]al 7,a7 ,det]m9ation ,! applicable p]c5tage %all be det]m9$ z foll[s3 ,9 ! case ( an applicable employ] ) a l[-wage employee ratio (3,! applicable p]c5tage is3#be p]c5t or less#be p]c5t ,great] ?an #be p]c5t1 b n great] ?an #ej p]c5t #ej percent,greater ?an #ej p]c5t1 b n great] ?an #ge p]c5t#ge percent,greater ?an #ge p]c5t#ajj p]c5t4 7,b7 ,l[-wage employee ratio ,= purposes ( subp>agraph 7,a71 ! l[-wage employee ratio ) respect to any applicable employ] is ! ratio 7express$ z a p]c5tage7 (-- 7i7 ! numb] ( l[-wage employees employ$ by ! applicable employ] dur+ ! cal5d> ye>1 to 7ii7 ! total numb] ( individuals employ$ by ! applicable employ] dur+ su* cal5d> ye>4 7#b7 ,heal? & retirem5t (fset 7,a7 ,9 g5]al ,9 ! case ( an applicable employ] :o meets ! requirem5ts ( subp>agraph 7,b71 ! applicable p]c5tage %all be r$uc$ 7b n bel[ z]o7 by #be p]c5tage po9ts4 7,b7 ,requirem5ts ,an applicable employ] meets ! requirem5ts ( ?is subp>agraph if su* applicable employ]-- 7i7 (f]s to all full-"t l[-wage employees 7& _! sp\se & dep5d5ts7 ! opportunity to enroll = all mon?s dur+ ! cal5d> ye> 9 m9imum ess5tial cov]age "u an eligible employ] sponsor$ heal? plan 7z def9$ 9 section #ejjj;,a7f77#b77 = :i*-- 7,i7 ! plan's %>e ( ! all[$ co/s ( b5efits provid$ "u ! plan is n less ?an #fj p]c5t ( su* co/s1 & 7,,ii7 ! requir$ contribution 7)9 ! mean+ ( section #ejjj;,a7e77#a77;,b77 ( ! employee does n exce$ ! applicable p]c5tage ( ! annual wages paid to ! employee by ! applicable employ]1 & 7ii7 meets ! retirem5t plan requirem5ts ( subsection 7d7 = all employees :o are l[-wage employees4 ,= purposes ( clause 7i77,,ii71 ! applicable p]c5tage is ! p]c5tage 9 effect "u section #cf;,b7b77#b77;,b77ii7 = ! plan ye>4 7d7 ,retirem5t plan requirem5ts 7#a7 ,9 g5]al ,! requirem5ts ( ?is subsection are met = any cal5d> ye> ) respect to an employee ( ! applicable employ] :o is a l[-wage employee if ! employee is eligible to p>ticipate 9 "o or m applicable eligible retirem5t plans ma9ta9$ by ! applicable employ] 7or any memb] ( ! gr\p ( employ]s treat$ z an applicable employ] "u subsection 7b77#a77;,c77 = a plan ye> end+ ) or )9 ! cal5d> ye>4 7#b7 ,applicable eligible retirem5t plan ,= purposes ( ?is subsection1 ! t]m applicable eligible retirem5t plan means an eligible retirem5t plan :i*1 ) respect to ! plan ye> describ$ 9 p>agraph 7#a71 is ei!r-- 7,a7 a def9$ contribution plan :i* requires ! employ] to make nonelective contributions ( at lea/ #e p]c5t ( ! comp5sation ( ! employee1 or 7,b7 a def9$ b5efit plan-- 7i7 ) respect to :i* ! accru$ b5efit ( ! employee d]iv$ f employ] contributions1 :5 express$ z an annual retirem5t b5efit1 is n less ?an ! product (-- 7,i7 ! less] ( #b p]c5t multipli$ by ! employee's ye>s ( s]vice 7det]m9$ "u ! rules ( p>agraphs 7#d71 7#e71 & 7#f7 ( section #daa7;a77 ) ! employ] or #bj p]c5t1 multipli$ by 7,,ii7 ! employee's f9al av]age pay1 or 7ii7 :i* is an applicable def9$ b5efit plan 7z def9$ 9 section #daa7;a77#ac77;,b77-- 7,i7 :i* meets ! int]e/ cr$it requirem5ts ( section #daa7;b77#e77;,b77i7 ) respect to ! plan ye>1 & 7,,ii7 "u :i* ! employee receives a pay cr$it = ! plan ye> :i* is n less ?an #e p]c5t ( comp5sation4 7#c7 ,def9itions & special rules ,= purposes ( ?is subsection-- 7,a7 ,eligible retirem5t plan ,! t]m eligible retirem5t plan has ! mean+ giv5 su* t]m by section #djb7;c77#h77;,b71 except t 9 ! case ( an acc\nt or annuity describ$ 9 clause 7i7 or 7ii7 !re(1 su* t]m %all only include an acc\nt or annuity :i* is a simplifi$ employee p5sion 7z def9$ 9 section #djh7k774 7,b7 ,f9al av]age pay ,= purposes ( p>agraph 7#b77;,b77i77,,ii71 f9al av]age pay %all be det]m9$ us+ ! p]iod ( consecutive ye>s 7n exce$+ #e7 dur+ :i* ! employee _h ! greate/ comp5sation f ! applicable employ]4 7,c7 ,alt]native plan designs ,! ,secret>y may prescribe regulations = an applicable employ] to meet ! requirem5ts ( ?is subsection ?r\gh a comb9ation ( def9$ contribution plans or def9$ b5efit plans describ$ 9 p>agraph 7#a7 or ?r\gh a comb9ation ( bo? su* types ( plans4 7,d7 ,plans mu/ meet requirem5ts )\t tak+ into acc\nt ,social ,security & simil> contributions & b5efits ,a rule simil> to ! rule ( section #daf7;e7 %all apply4 7,e7 ,c]ta9 employees may be exclud$ ,= purposes ( p>agraph 7#b77;,b77ii71 an employ] %all n be treat$ z fail+ to meet ! requirem5ts ( ?is subsection ) respect to employees-- 7i7 :o h n atta9$ ! age ( #ba be=e ! close ( a plan ye>1 7ii7 :o h less ?an #a ye> ( s]vice ) ! employ] z ( any day dur+ ! plan ye>1 7iii7 :o are cov]$ "u an agreem5t :i* ! ,secret>y ( ,labor f9ds to be a collective b>ga9+ agreem5t if !re is evid5ce t ! b5efits cov]$ "u ! plan 7 ! subject ( good fai? b>ga9+ betwe5 employee repres5tatives & ! employ]1 or 7iv7 :o are describ$ 9 section #daj7;b77#c77;,c7 7relat+ to nonresid5t ali5s work+ outside ! ,unit$ ,/ates74 7e7 ,def9itions & special rules ,= purposes ( ?is section-- 7#a7 ,wages ,! t]m wages has ! mean+ giv5 su* t]m by section #caba7;a7 7det]m9$ )\t reg>d to any doll> limitation conta9$ 9 su* section74 7#b7 ,allocation ( tax ,! ,secret>y %all prescribe su* rules z necess>y = ! allocation ( ! tax impos$ by subsection 7a7 among diff]5t entities treat$ z a s+le employ] "u subsection 7b77#a77;,c74 4 7b7 ,con=m+ am5dm5t ,! table ( *apt]s ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to *apt] #cf ! foll[+ new item3 ,*apt] #cg--;,corporate responsibility tax 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to cal5d> ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4