H.R.1836 - Payroll Tax Holiday Act of 2009
To amend the Internal Revenue Code of 1986 to provide a payroll tax holiday for small businesses.
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SECTION 1. SHORT TITLE.
SEC. 2. PAYROLL TAX HOLIDAY FOR SMALL BUSINESSES.
(a) In General- Subchapter C of chapter 21 of the Internal Revenue Code of 1986 (relating to Federal Insurance Contributions Act) is amended by redesignating section 3128 as section 3129 and by inserting after section 3127 the following new section:CommentsClose CommentsPermalink
‘SEC. 3128. PAYROLL TAX HOLIDAY FOR SMALL BUSINESSES DURING PORTION OF 2009.
‘(a) Payroll Taxes- In the case of an eligible small business, the rate of the taxes imposed by sections 3101(a) and 3111(a) shall be zero with respect to remuneration paid during the payroll tax holiday period, including for purposes of determining the rates of tax under sections 3201(a) and 3221(a) with respect to compensation paid during such period.CommentsClose CommentsPermalink
‘(1) IN GENERAL- For purposes of the tax imposed by section 1401(a), the self-employment income of the taxpayer for the taxable year (determined without regard to this subsection) shall be reduced by the payroll tax holiday period income for such taxable year.CommentsClose CommentsPermalink
‘(2) TAX ON EMPLOYEE REPRESENTATIVES UNDER THE RAILROAD RETIREMENT TAX ACT- For purposes of the tax imposed by section 3211(a), the compensation of the taxpayer subject to tax under such section for the taxable year (determined without regard to this subsection) shall be reduced by the payroll tax holiday period income for such taxable year for purposes of applying so much of the rate of such tax as is determined by reference to the taxes imposed by sections 3101(a) and 3111(a).CommentsClose CommentsPermalink
‘(3) PAYROLL TAX HOLIDAY PERIOD INCOME- For purposes of this subsection, the payroll tax holiday period income for any taxable year is the amount equal to the applicable percentage of--CommentsClose CommentsPermalink
‘(A) IN GENERAL- The term ‘eligible small business’ means any person engaged in a trade or business if such person employed no more than 50 employees on the first day of the payroll tax holiday period.CommentsClose CommentsPermalink
‘(B) the aggregate increase in employee compensation or capital expenditures during the payroll tax holiday period as compared to the comparable period ending on the day before the payroll tax holiday period,CommentsClose CommentsPermalink
then the applicable employer tax (determined without regard to this subsection) for the first payroll period beginning after the payroll tax holiday period shall be increased by such excess.CommentsClose CommentsPermalink
‘(e) Trust Funds Held Harmless- There are hereby appropriated (out of any money in the Treasury not otherwise appropriated) for each fiscal year to the trust funds under section 201 of the Social Security Act and the Social Security Equivalent Benefit Account under section 15A of the Railroad Retirement Act of 1974 (
45 U.S.C. 231n-1) an amount equal to the reduction in the transfers to such fund for such fiscal year by reason of this section.CommentsClose CommentsPermalink
(b) Conforming Amendment- The table of sections for such subchapter C is amended by redesignating the item relating to section 3128 as relating to section 3129 and by inserting after the item relating to section 3127 the following new item:CommentsClose CommentsPermalink
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to remuneration paid after the last day of the month which includes the date of the enactment of this Act.CommentsClose CommentsPermalink
(2) SELF-EMPLOYMENT TAXES- So much of section 3128 of the Internal Revenue Code of 1986 (as added by this section) as relates to the taxes imposed by sections 1401(a) and 3211(a) shall apply to taxable years ending after such last day.CommentsClose CommentsPermalink