Support for Workers, Families, and Social Security Act
This bill exempts employees from the payment of employment taxes for the period beginning on September 1, 2020, and ending on December 31, 2020. This exemption does not affect the determination of Social Security retirement benefits.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8201 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8201
To provide a temporary employee payroll tax holiday.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 11, 2020
Mr. Brady (for himself, Mr. Marchant, Mr. Scalise, Mr. Reed, Mr.
Steube, Mr. Flores, Mr. Kustoff of Tennessee, Mr. Rice of South
Carolina, Mr. Kevin Hern of Oklahoma, Mr. Wenstrup, Mr. Arrington, Mrs.
Miller, Mr. LaMalfa, Mr. Estes, Mr. Smucker, Mr. Smith of Nebraska, Mr.
Marshall, and Mr. Olson) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide a temporary employee payroll tax holiday.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Support for Workers, Families, and
Social Security Act''.
SEC. 2. TEMPORARY EMPLOYEE PAYROLL TAX HOLIDAY.
(a) In General.--Notwithstanding any other provision of law--
(1) with respect to any taxable year which includes any
portion of the payroll tax holiday period, the rate of tax
under section 1401(a) of the Internal Revenue Code of 1986
shall be reduced by the applicable number of percentage points
determined under subsection (d), and
(2) with respect to remuneration received during the
payroll tax holiday period, the rate of tax under 3101(a) of
such Code shall be 0 percent (including for purposes of
determining the applicable percentage under sections 3201(a)
and 3211(a)(1) of such Code).
(b) Coordination With Deductions for Employment Taxes.--
(1) Deduction in computing net earnings from self-
employment.--For purposes of applying section 1402(a)(12) of
the Internal Revenue Code of 1986, the rate of tax imposed by
section 1401(a) of such Code shall be determined without regard
to the reduction in such rate under this section.
(2) Individual deduction.--For purposes of determining the
deduction allowed under section 164(f) of the Internal Revenue
Code of 1986, the taxes imposed under section 1401 of such Code
shall be treated as being equal to the amount of such taxes
determined without regard to the reduction in the rate of tax
provided under subsection (a)(1).
(c) Payroll Tax Holiday Period.--For purposes of this section, the
term ``payroll tax holiday period'' means the period beginning on
September 1, 2020, and ending on December 31, 2020.
(d) Applicable Number of Percentage Points.--
(1) In general.--For purposes of subsection (a)(1), the
applicable number of percentage points with respect to any
individual for any taxable year is the number of percentage
points that bears the same ratio to 6.2 percent as--
(A) the number of days of the payroll tax holiday
period which are in such taxable year, bears to
(B) the number of days in such taxable year.
(2) Phaseout based on self-employment income.--In the case
of any individual whose self-employment income for any taxable
year exceeds an amount equal to the contribution and benefit
base for calendar year 2020 (as determined under section 230 of
the Social Security Act), the applicable number of percentage
points with respect to such individual for such taxable year
(determined without regard to this paragraph) shall be reduced
by an amount which bears the same ratio to such applicable
number of percentage points as--
(A) such excess, bears to
(B) $68,850.
(e) Employer Notification.--The Secretary of the Treasury shall
notify employers of the payroll tax holiday period in any manner the
Secretary deems appropriate.
(f) Coordination With Other Federal Laws.--For purposes of applying
any provision of Federal law other than the provisions of the Internal
Revenue Code of 1986, the rate of tax in effect under section 3101(a)
of such Code shall be determined without regard to the reduction in
such rate under this section.
SEC. 3. PROTECTION OF SOCIAL SECURITY TRUST FUNDS.
(a) 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 201 of the Social Security Act (42 U.S.C.
401) amounts equal to the reduction in revenues to the Treasury by
reason of the application of section 2(a). 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 enacted.
(b) Transfers to Social Security Equivalent Benefit Account.--There
are hereby appropriated to the Social Security Equivalent Benefit
Account established under section 15A(a) of the Railroad Retirement Act
of 1974 (45 U.S.C. 231n-1(a)) amounts equal to the reduction in
revenues to the Treasury by reason of the application of section
2(a)(2). 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 enacted.
SEC. 4. NO EFFECT ON SOCIAL SECURITY BENEFITS.
Nothing in this Act shall have any effect on the determination of
any benefit under title II of the Social Security Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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