,,ii #aafth ,,congress #b;d ,session ,s4 #dbac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bj1 #bjbj ,ms4 ,ernst introduced the following bill2 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-#ai emergency4 #a4 ,short title ,this ,act may be cited as the ,financial ,relief ,noting ,the ,large ,impact ,of ,our ,nation's ,essential ,employees 7,,frnt ,,line7 ,act4 #b4 ,definitions ,for purposes of this ,act3 7#a7 ,covid-#ai front-line employee ,the term ,,covid-#ai front-line employee means an employee-- 7,a7 whose principal place of employment during the ,,covid-#ai emergency period is on the employer's premises or at a prescribed work place that is not home of the employee1 and 7,b7 who-- 7i7 is identified as essential critical infrastructure workforce pursuant to the guidance issued on ,march #ai1 #bjbj1 by ,cybersecurity and ,infrastructure ,security ,agency of the ,department of ,homeland ,security 7including any revisions to such guidance made after such date71 7ii7 performs restaurant and foodservice work1 including carryout1 drive-thru1 or food delivery work1 requiring physical interaction with individuals or food products1 or 7iii7 performs educational work1 school nutrition work1 and other work required to operate a school facility1 including early childhood programs1 preschool programs1 elementary and secondary education1 and higher education4 7#b7 ,,covid-#ai emergency period ,the term ,,covid-#ai emergency period means the period-- 7,a7 beginning on ,april #a1 #bjbj1 and 7,b7 ending on the earlier of-- 7i7 the last day of the first month in which the emergency involving ,federal primary responsibility determined to exist by the ,president under section #eja7;b7 of the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eaia7;b77 with respect to the ,coronavirus ,disease #bjai 7,,covid-#ai7 is no longer in effect1 or 7ii7 ,december #ca1 #bjbj4 7#c7 ,other terms ,any term used in this ,act which is used in chapter #b of the ,internal ,revenue ,code of #aihf shall have the meaning given such term under such chapter4 #c4 ,exclusion from gross income for certain compensation of front-line employees for essential industries during the ,,covid-#ai national emergency 7a7 ,in general ,for purposes of the ,internal ,revenue ,code of #aihf1 gross income shall not include any wages received during the ,,covid-#ai emergency period by an individual who is a ,,covid-#ai front-line employee for employment as a ,,covid-#ai front-line employee4 7b7 ,limitation ,the amount of wages excluded from gross income under subsection 7a7 for any month shall not exceed #h1hjc4ej for any month during any part of which such ,,covid-#ai front-line employee earned income as an essential critical infrastructure employee4 7c7 ,special rule for child tax credit and earned income credit ,for purposes of sections #bd and #cb of the ,internal ,revenue ,code of #aihf1 an taxpayer may elect to treat amounts excluded from gross income by reason of subsection 7a7 as earned income4 7d7 ,reporting ,any employer that makes a payment described in subsection 7a7 during a calendar year shall include the amount of such payment as a separately stated item on any written statement required under section #fjea of the ,internal ,revenue ,code of #aihf4 #d4 ,temporary suspension of payroll taxes 7a7 ,in general ,notwithstanding any other provision of law1 with respect to remuneration received by a ,,covid-#ai front-line employee for pay periods ending after the effective date of this ,act and before the date described in section #b7c77;,b71 the rate of tax under #caja7;a7 of the ,internal ,revenue ,code of #aihf shall be #j percent 7including for purposes of determining the applicable percentage under sections #cbja7;a7 and #cbaa7;a7 of such ,code74 7b7 ,limitation 7#a7 ,in general ,subsection 7a7 shall not apply to any ,,covid-#ai front-line employee whose annual wages for the calendar year is expected to exceed #ej1jjj4 7#b7 ,guidance ,the ,secretary shall prescribed regulations or other guidance for purposes of determining the amount of expected annual wages for nonsalaried employees1 including for situations in which an employee expects annual wages in excess of the amount described in paragraph 7#a7 from more than #a employer4 7c7 ,employer notification ,the ,secretary of the ,treasury shall notify employers of the payroll tax suspension period in any manner the ,secretary deems appropriate4 7d7 ,transfers of funds 7#a7 ,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 #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 amounts equal to the reduction in revenues to the ,treasury by reason of the application of section #d4 ,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 enacted4 7#b7 ,transfers to ,social ,security ,equivalent ,benefit ,account ,there are hereby appropriated to the ,social ,security ,equivalent ,benefit ,account established under section #ae;,a7a7 of the ,railroad ,retirement ,act of #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 amounts equal to the reduction in revenues to the ,treasury by reason of the application of section #d4 ,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 enacted4 7e7 ,coordination with other ,federal laws ,for purposes of applying any provision of ,federal law other than the provisions of the ,internal ,revenue ,code of #aihf1 the rate of tax in effect under section #caja7;a7 of such ,code shall be determined without regard to the reduction in such rate under this section4