Support for Workers, Families, and Social Security Act

I 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Support for Workers, 4 Families, and Social Security Act’’. 5 SEC. 2. TEMPORARY EMPLOYEE PAYROLL TAX HOLIDAY. 6 (a) IN GENERAL.—Notwithstanding any other provi- 7 sion of law— 8 (1) with respect to any taxable year which in- 9 cludes any portion of the payroll tax holiday period, 10 VerDate Sep 11 2014 01:47 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8201.IH H8201 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8201 IH the rate of tax under section 1401(a) of the Internal 1 Revenue Code of 1986 shall be reduced by the appli- 2 cable number of percentage points determined under 3 subsection (d), and 4 (2) with respect to remuneration received dur- 5 ing the payroll tax holiday period, the rate of tax 6 under 3101(a) of such Code shall be 0 percent (in- 7 cluding for purposes of determining the applicable 8 percentage under sections 3201(a) and 3211(a)(1) 9 of such Code). 10 (b) COORDINATION WITH DEDUCTIONS FOR EM- 11 PLOYMENT TAXES.— 12 (1) DEDUCTION IN COMPUTING NET EARNINGS 13 FROM SELF-EMPLOYMENT.—For purposes of apply- 14 ing section 1402(a)(12) of the Internal Revenue 15 Code of 1986, the rate of tax imposed by section 16 1401(a) of such Code shall be determined without 17 regard to the reduction in such rate under this sec- 18 tion. 19 (2) INDIVIDUAL DEDUCTION.—For purposes of 20 determining the deduction allowed under section 21 164(f) of the Internal Revenue Code of 1986, the 22 taxes imposed under section 1401 of such Code shall 23 be treated as being equal to the amount of such 24 VerDate Sep 11 2014 01:47 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8201.IH H8201 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8201 IH taxes determined without regard to the reduction in 1 the rate of tax provided under subsection (a)(1). 2 (c) PAYROLL TAX HOLIDAY PERIOD.—For purposes 3 of this section, the term ‘‘payroll tax holiday period’’ 4 means the period beginning on September 1, 2020, and 5 ending on December 31, 2020. 6 (d) APPLICABLE NUMBER OF PERCENTAGE 7 POINTS.— 8 (1) IN GENERAL.—For purposes of subsection 9 (a)(1), the applicable number of percentage points 10 with respect to any individual for any taxable year 11 is the number of percentage points that bears the 12 same ratio to 6.2 percent as— 13 (A) the number of days of the payroll tax 14 holiday period which are in such taxable year, 15 bears to 16 (B) the number of days in such taxable 17 year. 18 (2) PHASEOUT BASED ON SELF-EMPLOYMENT 19 INCOME.—In the case of any individual whose self- 20 employment income for any taxable year exceeds an 21 amount equal to the contribution and benefit base 22 for calendar year 2020 (as determined under section 23 230 of the Social Security Act), the applicable num- 24 ber of percentage points with respect to such indi- 25 VerDate Sep 11 2014 01:47 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8201.IH H8201 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 8201 IH vidual for such taxable year (determined without re- 1 gard to this paragraph) shall be reduced by an 2 amount which bears the same ratio to such applica- 3 ble number of percentage points as— 4 (A) such excess, bears to 5 (B) $68,850. 6 (e) EMPLOYER NOTIFICATION.—The Secretary of the 7 Treasury shall notify employers of the payroll tax holiday 8 period in any manner the Secretary deems appropriate. 9 (f) COORDINATION WITH OTHER FEDERAL LAWS.— 10 For purposes of applying any provision of Federal law 11 other than the provisions of the Internal Revenue Code 12 of 1986, the rate of tax in effect under section 3101(a) 13 of such Code shall be determined without regard to the 14 reduction in such rate under this section. 15 SEC. 3. PROTECTION OF SOCIAL SECURITY TRUST FUNDS. 16 (a) TRANSFERS TO FEDERAL OLD-AGE AND SUR- 17 VIVORS INSURANCE TRUST FUND.—There are hereby ap- 18 propriated to the Federal Old-Age and Survivors Trust 19 Fund and the Federal Disability Insurance Trust Fund 20 established under section 201 of the Social Security Act 21 (42 U.S.C. 401) amounts equal to the reduction in reve- 22 nues to the Treasury by reason of the application of sec- 23 tion 2(a). Amounts appropriated by the preceding sen- 24 tence shall be transferred from the general fund at such 25 VerDate Sep 11 2014 01:47 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8201.IH H8201 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 8201 IH times and in such manner as to replicate to the extent 1 possible the transfers which would have occurred to such 2 Trust Fund had such amendments not been enacted. 3 (b) TRANSFERS TO SOCIAL SECURITY EQUIVALENT 4 BENEFIT ACCOUNT.—There are hereby appropriated to 5 the Social Security Equivalent Benefit Account estab- 6 lished under section 15A(a) of the Railroad Retirement 7 Act of 1974 (45 U.S.C. 231n–1(a)) amounts equal to the 8 reduction in revenues to the Treasury by reason of the 9 application of section 2(a)(2). Amounts appropriated by 10 the preceding sentence shall be transferred from the gen- 11 eral fund at such times and in such manner as to replicate 12 to the extent possible the transfers which would have oc- 13 curred to such Account had such amendments not been 14 enacted. 15 SEC. 4. NO EFFECT ON SOCIAL SECURITY BENEFITS. 16 Nothing in this Act shall have any effect on the deter- 17 mination of any benefit under title II of the Social Secu- 18 rity Act. 19 Æ VerDate Sep 11 2014 01:47 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H8201.IH H8201 pamtmann on DSKBC07HB2PROD with BILLS