Mitt Romney proposes giving essential workers a $12/hr bonus for next 3 months

SALT LAKE CITY, Utah (KUTV) — Senator Mitt Romney (R-UT) wants to give America's essential workers a $12 per hour bonus during May, June, and July.

Called "Patriot Pay," the bill would "help compensate" essential workers who are at greater risk of getting COVID-19.

Romney spoke to Utah media about the bill. You can watch the entire virtual press briefing below:

Three-quarters of the bonus would be paid by the federal government while the remaining one-quarter would be paid by the employer. It would be funded through a refundable payroll tax credit.

Employers would need to opt into the program and would have to certify their employees were working in conditions that increased their risk of exposure to the coronavirus.

Romney says:

"These people are taking a health risk by providing food for us at our grocery stores, driving our buses and transit vehicles, making sure we have the healthcare that we need in hospitals and clinics, keeping our hospitals clean. All these frontline works will get additional compensation. It's also designed to make sure the people who are working to care for us are actually as making as much money or more money than those that are on unemployment."

Below is how Romney lays out his Patriot Pay plan.

How would patriot pay work?

• For essential employees that make less than $50,000 annualized, employers would receive a 75% refundable payroll tax credit for a bonus up to $12 an hour.
• For essential employees making over $50,000 annualized, the tax credit phases out by $24 for every additional $500 in income until annualized incomes hit $90,000.
• The maximum tax credit is $1,440 per month, per employee, meaning a full-time worker would receive up to a $1,920 monthly bonus.

Who would qualify for the tax credit?

• Congress and the Department of Labor would designate critical industries including, but not limited to, hospitals, food distributors and processors, and health manufacturers.
• Eligible employers will certify that an employee worked in conditions that increased their potential COVID-19 exposure.
• Eligible employers would qualify for tax credits for employee bonuses provided between May 1 and July 31, 2020. Employees must work at least 100 hours each month they receive the bonus for their wages to be eligible for the tax credit.

How would employers claim the credit?

• Employers would submit a streamlined claim to the IRS, using the recently created system that already advances the paid leave tax credit.
• Congress should also provide the IRS the authority to partner with payroll companies who may be able to more quickly advance the credit.

Romney gave the following example:

"A grocery store in Provo, Utah could opt into Patriot Pay to give their workers a $12/hour bonus. The employer would contribute $3, while the federal benefit would add $9, meaning a $10/hour worker would receive a $5,760 bonus from May 1 through the end of July. The grocery store worker’s weekly paycheck would include an extra $480."