I 

118TH CONGRESS 

2D SESSION H. R. 8194 

To amend the Internal Revenue Code of 1986 to exclude compensation from 

secondary employment for certain taxpayers from the income tax and 

payroll taxes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 1, 2024 

Mr. BACON introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

compensation from secondary employment for certain 

taxpayers from the income tax and payroll taxes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Second Job Tax Relief 

5 Act of 2024’’. 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•HR 8194 IH

1 SEC. 2. EXCLUSION OF COMPENSATION FOR CERTAIN SEC2 ONDARY EMPLOYMENT FROM INCOME AND 

3 PAYROLL TAX. 

4 (a) IN GENERAL.—Part III of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 is amended 

6 by inserting after section 139I the following new section: 

7 ‘‘SEC. 139J. EARNED INCOME FROM ADDITIONAL EMPLOY8 MENT. 

9 ‘‘(a) IN GENERAL.—In the case of a qualifying tax10 payer, gross income shall not include secondary employ11 ment compensation. 

12 ‘‘(b) PHASE-OUT.—The amount of compensation ex13 cluded from gross income under subsection (a) (deter14 mined without regard to this subsection) shall be reduced 

15 (but not below zero) by the amount which bears the same 

16 ratio to the amount which is so excludable as— 

17 ‘‘(1) the excess (if any) of— 

18 ‘‘(A) the taxpayer’s modified adjusted 

19 gross income (as defined in section 

20 36(b)(2)(B)) for such taxable year, over 

21 ‘‘(B) $100,000 ($150,000 in the case of a 

22 married couple filing jointly), bears to 

23 ‘‘(2) $50,000. 

24 ‘‘(c) SECONDARY EMPLOYMENT COMPENSATION.— 

25 ‘‘(1) IN GENERAL.—For purposes of this sec26 tion, the term ‘secondary employment compensation’ 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•HR 8194 IH

1 means compensation received for employment during 

2 a taxable year with respect to which an individual 

3 has made an election under paragraph (2) for an 

4 employer other than the primary employer of such 

5 individual. 

6 ‘‘(2) PRIMARY EMPLOYER.— 

7 ‘‘(A) ELECTION.—A taxpayer may elect to 

8 designate, with respect to a taxable year, a pri9 mary employer if such individual was com10 pensated on an hourly basis for not less than 

11 2080 hours of work by such employer. 

12 ‘‘(B) DEFINITION.—For purposes of this 

13 section, the term ‘primary employer’ means, 

14 with respect to a taxable year, an employer des15 ignated by the taxpayer under subparagraph 

16 (A). 

17 ‘‘(d) SUNSET.—Subsection (a) shall not apply to 

18 compensation earned in taxable years beginning after the 

19 date is that is 5 years after the date of the enactment 

20 of this section.’’. 

21 (b) APPLICATION TO EMPLOYMENT TAXES.— 

22 (1) SOCIAL SECURITY TAXES.— 

23 (A) IN GENERAL.—Section 3121(a) of 

24 such Code is amended by striking ‘‘or’’ at the 

25 end of paragraph (22), by striking the period at 


ssavage on LAPJG3WLY3PROD with BILLS
4 

•HR 8194 IH

1 the end of paragraph (23) and inserting ‘‘; or’’, 

2 and by inserting after paragraph (23) the fol3 lowing new paragraph: 

4 ‘‘(24) any amount of compensation which is ex5 cludable from gross income under section 139J.’’. 

6 (B) TRUST FUNDS HELD HARMLESS.— 

7 There are hereby appropriated to the Federal 

8 Old-Age and Survivors Insurance Trust Fund, 

9 the Federal Disability Insurance Trust Fund, 

10 and the Federal Hospital Insurance Trust 

11 Fund amounts equivalent to the reduction in 

12 revenues to each such Trust Fund, respectively, 

13 by reason of the amendment made by subpara14 graph (A) (determined without regard to this 

15 subparagraph). Amounts appropriated by the 

16 preceding sentence shall be transferred from the 

17 general fund at such times and in such manner 

18 as to replicate to the extent possible the trans19 fers which would have occurred to such Trust 

20 Fund had this section not been enacted. 

21 (2) UNEMPLOYMENT TAXES.—Section 3306(b) 

22 of such Code is amended by striking ‘‘or’’ at the end 

23 of paragraph (19), by striking the period at the end 

24 of paragraph (20) and inserting ‘‘; or’’, and by inVerDate Sep 11 2014 20:39 May 29, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8194.IH H8194

ssavage on LAPJG3WLY3PROD with BILLS
5 

•HR 8194 IH

1 serting after paragraph (20) the following new para2 graph: 

3 ‘‘(21) any amount of compensation which is ex4 cludable from gross income under section 139J.’’. 

5 (3) WAGE WITHHOLDING.—Section 3401(a) of 

6 such Code is amended by striking ‘‘or’’ at the end 

7 of paragraph (22), by striking the period at the end 

8 of paragraph (23) and inserting ‘‘; or’’, and by in9 serting after paragraph (23) the following new para10 graph: 

11 ‘‘(24) any amount of compensation which is ex12 cludable from gross income under section 139J.’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

14 for part III of subchapter B of chapter 1 of such Code 

15 is amended by inserting after the item relating to section 

16 139I the following new item: 

‘‘Sec. 139J. Earned income from additional employment.’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to amounts received after the date 

19 of the enactment of this Act. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS