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. 

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 ‘‘Support for Workers, 

5 Families, and Social Security Act’’. 

6 SEC. 2. TEMPORARY EMPLOYEE PAYROLL TAX HOLIDAY. 

7 (a) IN GENERAL.—Notwithstanding any other provi8 sion of law— 

9 (1) with respect to any taxable year which in10 cludes any portion of the payroll tax holiday period, 


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1 the rate of tax under section 1401(a) of the Internal 

2 Revenue Code of 1986 shall be reduced by the appli3 cable number of percentage points determined under 

4 subsection (d), and 

5 (2) with respect to remuneration received dur6 ing the payroll tax holiday period, the rate of tax 

7 under 3101(a) of such Code shall be 0 percent (in8 cluding for purposes of determining the applicable 

9 percentage under sections 3201(a) and 3211(a)(1) 

10 of such Code). 

11 (b) COORDINATION WITH DEDUCTIONS FOR EM12 PLOYMENT TAXES.— 

13 (1) DEDUCTION IN COMPUTING NET EARNINGS

14 FROM SELF-EMPLOYMENT.—For purposes of apply15 ing section 1402(a)(12) of the Internal Revenue 

16 Code of 1986, the rate of tax imposed by section 

17 1401(a) of such Code shall be determined without 

18 regard to the reduction in such rate under this sec19 tion. 

20 (2) INDIVIDUAL DEDUCTION.—For purposes of 

21 determining the deduction allowed under section 

22 164(f) of the Internal Revenue Code of 1986, the 

23 taxes imposed under section 1401 of such Code shall 

24 be treated as being equal to the amount of such 


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1 taxes determined without regard to the reduction in 

2 the rate of tax provided under subsection (a)(1). 

3 (c) PAYROLL TAX HOLIDAY PERIOD.—For purposes 

4 of this section, the term ‘‘payroll tax holiday period’’ 

5 means the period beginning on September 1, 2020, and 

6 ending on December 31, 2020. 

7 (d) APPLICABLE NUMBER OF PERCENTAGE

8 POINTS.— 

9 (1) IN GENERAL.—For purposes of subsection 

10 (a)(1), the applicable number of percentage points 

11 with respect to any individual for any taxable year 

12 is the number of percentage points that bears the 

13 same ratio to 6.2 percent as— 

14 (A) the number of days of the payroll tax 

15 holiday period which are in such taxable year, 

16 bears to 

17 (B) the number of days in such taxable 

18 year. 

19 (2) PHASEOUT BASED ON SELF-EMPLOYMENT

20 INCOME.—In the case of any individual whose self21 employment income for any taxable year exceeds an 

22 amount equal to the contribution and benefit base 

23 for calendar year 2020 (as determined under section 

24 230 of the Social Security Act), the applicable num25 ber of percentage points with respect to such indiVerDate Sep 11 2014 01:47 Sep 12, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8201.IH H8201

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1 vidual for such taxable year (determined without re2 gard to this paragraph) shall be reduced by an 

3 amount which bears the same ratio to such applica4 ble number of percentage points as— 

5 (A) such excess, bears to 

6 (B) $68,850. 

7 (e) EMPLOYER NOTIFICATION.—The Secretary of the 

8 Treasury shall notify employers of the payroll tax holiday 

9 period in any manner the Secretary deems appropriate. 

10 (f) COORDINATION WITH OTHER FEDERAL LAWS.— 

11 For purposes of applying any provision of Federal law 

12 other than the provisions of the Internal Revenue Code 

13 of 1986, the rate of tax in effect under section 3101(a) 

14 of such Code shall be determined without regard to the 

15 reduction in such rate under this section. 

16 SEC. 3. PROTECTION OF SOCIAL SECURITY TRUST FUNDS. 

17 (a) TRANSFERS TO FEDERAL OLD-AGE AND SUR18 VIVORS INSURANCE TRUST FUND.—There are hereby ap19 propriated to the Federal Old-Age and Survivors Trust 

20 Fund and the Federal Disability Insurance Trust Fund 

21 established under section 201 of the Social Security Act 

22 (42 U.S.C. 401) amounts equal to the reduction in reve23 nues to the Treasury by reason of the application of sec24 tion 2(a). Amounts appropriated by the preceding sen25 tence shall be transferred from the general fund at such 


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1 times and in such manner as to replicate to the extent 

2 possible the transfers which would have occurred to such 

3 Trust Fund had such amendments not been enacted. 

4 (b) TRANSFERS TO SOCIAL SECURITY EQUIVALENT

5 BENEFIT ACCOUNT.—There are hereby appropriated to 

6 the Social Security Equivalent Benefit Account estab7 lished under section 15A(a) of the Railroad Retirement 

8 Act of 1974 (45 U.S.C. 231n–1(a)) amounts equal to the 

9 reduction in revenues to the Treasury by reason of the 

10 application of section 2(a)(2). Amounts appropriated by 

11 the preceding sentence shall be transferred from the gen12 eral fund at such times and in such manner as to replicate 

13 to the extent possible the transfers which would have oc14 curred to such Account had such amendments not been 

15 enacted. 

16 SEC. 4. NO EFFECT ON SOCIAL SECURITY BENEFITS. 

17 Nothing in this Act shall have any effect on the deter18 mination of any benefit under title II of the Social Secu19 rity Act. 

Æ 


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