In an effort to reward frontline workers of essential businesses and help small businesses rebuild their workforces quickly, Congressional leaders introduced the Reopening America by Supporting Workers and Businesses Act of 2020. The bipartisan bill turns unemployment benefits into a back-to-work bonus that will provide a bump to workers and help accelerate the economic recovery.
Some details of the bill include:
- An advanceable and refundable tax credit to businesses to give their workers a bonus equal to 30% of the wages earned during the crisis for individuals making less than $30,000 per year.
- The credits phase down as income rises. The credit will cover a bonus of 5% of wages earned during the crisis for individuals earning $55,000 per year.
- The credit will cover a payment of $600 for individual’s earning between $55,000 and $99,000 per year.
- The bill uses existing IRS and Treasury authorities because it is the quickest way to ensure workers get financial relief.
In a statement, the International Franchise Association (IFA) noted: “the Rewarding American Workers Act does just that – it would ensure employees receive additional support for their hard work during this pandemic. Importantly, it helps keep workers on payroll, which better provides a long-term path for economic recovery. IFA supports this legislation to benefit America’s more than 8 million franchise employees and their families.”
A summary of the bill can be found here.