Compensation received by frontline employees during the COVID-19 pandemic would be excluded from income and payroll taxes under new legislation recently introduced by U.S. Sen. Joni Ernst (R-IA).
“These men and women are putting the interests of their fellow Americans ahead of their own,” said Sen. Ernst. “Each and every morning they wake up and go to work, and they should be rewarded for their selfless service.”
Sen. Ernst on July 20 sponsored the Financial Relief Noting The Large Impact Of Our Nation’s Essential Employees (FRNT LINE) Act, S. 4213, which would suspend federal income taxes for essential workers up to an annual income cap set at the highest level of pay for an enlisted person in the U.S. Armed Forces, according to a one-page summary of the bill provided by Sen. Ernst’s office.
Additionally, S. 4213 would provide suspension of federal payroll taxes for essential workers who earn up to $50,000 annually, according to the summary.
“Our essential workers have risen to the challenge and continued in their daily jobs to care for and protect Iowans, to produce and deliver food and essential goods, and to uphold our nation’s critical infrastructure throughout this pandemic,” Sen. Ernst said. “These front line workers — our nurses, truck drivers, and grocery store workers, childcare providers, and so many others — have kept life going and our supply chains intact.”
The nation cannot weather the pandemic without its essential workforce, according to Sen. Ernst’s bill summary.
Numerous industry groups support S. 4213, including the National Restaurant Association, the Food Industry Association, and the International Dairy Foods Association.
We’re proud to support this bill which helps ensure we can continue feeding our communities and supporting our supply chain partners,” said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association.