A bill to amend the extension of the temporary employee payroll tax holiday to give individuals the choice of whether to participate.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Preservation through 
Individual Choice Enhancement Act''.

SEC. 2. ELECTION TO TAKE EMPLOYEE PAYROLL TAX CUT.

    (a) In General.--Section 601 of the Tax Relief, Unemployment 
Insurance Reauthorization, and Job Creation Act of 2010 is amended by 
redesignating subsections (b) through (g) as subsections (c) through 
(i), respectively, and by inserting after subsection (a) the following 
new subsection:
    ``(b) Election To Take Employee Payroll Tax Cut.--
            ``(1) In general.--Subsection (a) shall apply with respect 
        to remuneration received by any individual for services 
        rendered in a calendar year (or taxable year beginning in the 
        calendar year) in the payroll tax holiday period only if a tax 
        holiday election under paragraph (2) is in effect with respect 
        to such calendar year.
            ``(2) Tax holiday election.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `tax holiday election' 
                means, with respect to the individual, an election to 
                have subsection (a) apply to a calendar year (or 
                taxable year beginning in such calendar year) in the 
                payroll tax holiday period beginning in or after 2012. 
                Any such election shall remain in effect until such 
                election is revoked.
                    ``(B) When made.--An election with respect to a 
                calendar year (and a taxable year beginning in the 
                taxable year) may be made before July 1 of the calendar 
                year for which such remuneration is received.
                    ``(C) Revocation of election.--Subject to such 
                conditions as the Secretary deems necessary, an 
                individual may revoke an election to have subsection 
                (a) apply with respect to a calendar year (and taxable 
                year beginning in the calendar year) if such revocation 
                is made before July 1 of the calendar year.
                    ``(D) Time and manner of election and revocation.--
                Any election and revocation under this subsection shall 
                be made at such time and in such manner as the 
                Secretary may prescribe.
            ``(3) Special rules.--
                    ``(A) 1st employment or self-employment after 
                beginning of year.--In the case of an individual whose 
                employment or self-employment first commences after the 
                beginning of the calendar year or taxable year (as the 
                case may be), the election under paragraph (2)(A) shall 
                be made before or with the beginning of such 
                employment.
                    ``(B) Multiple employers.--In the case that an 
                individual is employed by more than 1 employer 
                (including self-employment) for a period, an election 
                or revocation made under this subsection made with 
                respect to remuneration from 1 employer shall apply to 
                all employers. For purposes of the preceding sentence, 
                the most recent valid election or revocation for a 
                period shall be the only election or revocation (as the 
                case may be) in effect for that period.
            ``(4) Overpayment and underpayment of tax.--
                    ``(A) Credit for overpayment.--See sections 6402 
                and 6413 of such Code for provisions relating to 
                overpayments of employment taxes.
                    ``(B) Underpayment of taxes.--If, by reason of an 
                election or revocation under this subsection for a 
                calendar year or taxable year, an individual has a 
                liability for tax under section 1401(a), 3101(a), 
                3201(a), or 3211(a)(1) of such Code for the taxable 
                year beginning with or in the calendar year, for 
                purposes of subtitle F of such Code, such liability, 
                together with interest on such liability at the 
                underpayment rate established under section 6621, shall 
                be assessed and collected in the manner prescribed by 
                the Secretary.
            ``(5) Regulations.--The Secretary, in consultation with the 
        Commissioner of Social Security, shall prescribe such 
        regulations or other guidance as may be necessary to carry out 
        this subsection. Such regulations or other guidance shall 
        include procedures providing for the exchange of information 
        between the Secretary and the Commissioner of Social Security 
        for purposes of this subsection.''.
    (b) Extension of Retirement Age in Connection With Election To Take 
Payroll Tax Cut.--Section 216(l) of the Social Security Act (42 U.S.C 
416(l)) is amended by adding at the end the following new paragraph:
    ``(4)(A) For each calendar year beginning with or after 2012 for 
which section 601(a) of the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010 applies with respect to 
the wages received by an individual for services rendered in such year, 
the retirement age (as defined in paragraph (1)) of such individual 
shall be increased by 1 month.
    ``(B) In the case of any taxable year for which such section 601(a) 
applies (with respect to remuneration received by an individual as 
self-employment income for services rendered in such taxable year), any 
calendar year in which such taxable year commences shall be treated as 
a calendar year for which such section 601(a) applies as described in 
subparagraph (A).''.

Summary: Social Security Preservation through Individual Choice Enhancement Act - Amends the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 to allow individual taxpayers an election to claim the 2 reduction in employment taxes under such Act in any calendar year beginning in or after 2012. Amends title II of the Social Security Act to increase the applicable social security retirement age by one month for each calendar year that a taxpayer elects a reduction in employment taxes under this Act.