A bill to provide that no penalty shall be imposed on an employee for taxable years 1987 or 1988 in cases where an employer fails to withhold on the basis of valid withholding certificates, and that the increase from 80 percent to 90 percent in the current year liability test for estimated tax payments be delayed for two years.

Provides for a waiver of estimated tax penalties on employees due to an employer's failure to withhold tax in cases where an employer fails to withhold tax on the basis of valid withholding certificates. Limits such waiver to taxable years 1987 and 1988.

Amends the Tax Reform Act of 1986 to delay for two years from December 31, 1986, until December 31, 1988, the increase from 80 percent to 90 percent in the current year liability test for estimated tax payments.