I 

111TH CONGRESS 

2D SESSION H. R. 4680 

To reduce the employer portion of payroll taxes in the case of employers 

who expand payroll in 2010 and 2011. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 24, 2010 

Mr. ELLSWORTH introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To reduce the employer portion of payroll taxes in the case 

of employers who expand payroll in 2010 and 2011. 

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 ‘‘Jobs Momentum Act 

5 of 2010’’. 

6 SEC. 2. REDUCTION IN EMPLOYER PORTION OF PAYROLL 

7 TAX FOR CERTAIN EMPLOYERS INCREASING 

8 PAYROLL. 

9 (a) IN GENERAL.—In the case of any calendar quar10 ter beginning in 2010 or 2011, the aggregate amount of 


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1 employer payroll tax deposits of an employer shall be re2 duced (but not below zero) by an amount equal to the ap3 plicable percentage of the payroll increase of such em4 ployer for such calendar quarter. 

5 (b) DEFINITIONS AND SPECIAL RULES.—For pur6 poses of this section— 

7 (1) EMPLOYER PAYROLL TAX DEPOSITS.—The 

8 term ‘‘employer payroll tax deposits’’ means deposits 

9 an employer is required to make under section 6302 

10 of the Internal Revenue Code of 1986 of taxes im11 posed on such employer under section 3111 of such 

12 Code with respect to individuals in his employ. 

13 (2) APPLICABLE PERCENTAGE.—The applicable 

14 percentage shall be— 

15 (A) in the case of any calendar quarter be16 ginning in 2010, 10 percent, and 

17 (B) in the case of any calendar quarter be18 ginning in 2011, 5 percent. 

19 (3) PAYROLL INCREASE.— 

20 (A) IN GENERAL.—The term ‘‘payroll in21 crease’’ means, with respect to an employer for 

22 a calendar quarter, the excess (if any) of— 

23 (i) the aggregate amount of qualified 

24 wages (as defined in section 3121(a) of 


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1 such Code) paid by such employer to all 

2 employees for such calendar quarter, over 

3 (ii) aggregate amount of inflation ad4 justed qualified wages paid by such em5 ployer to all employees for the same cal6 endar quarter in the preceding calendar 

7 year. 

8 (B) QUALIFIED WAGES.—The term ‘‘quali9 fied wages’’ means, with respect to an em10 ployee, so much of such employee’s wages (as 

11 defined in section 3121(a)) of such Code) as 

12 does not exceed $32,000. 

13 (C) INFLATION ADJUSTED QUALIFIED

14 WAGES.—The term ‘‘inflation adjusted qualified 

15 wages’’ means an amount equal to— 

16 (i) qualified wages with respect to an 

17 employee, multiplied by 

18 (ii) the cost-of-living adjustment de19 termined under section 1(f)(3) for the cal20 endar year for which the reduction in de21 posits under this section is being deter22 mined occurs, determined by substituting 

23 ‘calendar year 2009’ for ‘calendar year 

24 1992’ in subparagraph (B) thereof. 


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1 (4) DENIAL OF DOUBLE BENEFIT.—The 

2 amount of any deduction allowable to the employer 

3 under chapter 1 of such Code for taxes paid under 

4 section 3111 of such Code with respect to employ5 ment during any calendar quarter shall be reduced 

6 by the amount by which the employer payroll tax de7 posits of such employer are reduced under sub8 section (a) for such quarter. 

9 (5) WAGES MUST BE FOR TRADE OR BUSI10 NESS.—A rule similar to the rule of section 51(f) of 

11 such Code shall apply. 

12 (6) ADJUSTMENTS FOR CERTAIN ACQUISITIONS, 

13 ETC.—Under regulations prescribed by the Sec14 retary— 

15 (A) ACQUISITIONS.—If, after December 

16 31, 2009, an employer acquires the major por17 tion of a trade or business of another person 

18 (hereafter in this paragraph referred to as the 

19 ‘‘predecessor’’) or the major portion of a sepa20 rate unit of a trade or business of a prede21 cessor, then, for purposes of applying this sec22 tion for any calendar quarter ending after such 

23 acquisition, the amount of wages or compensa24 tion deemed paid by the employer during peri25 ods before such acquisition shall be increased by 


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1 so much of such wages or compensation paid by 

2 the predecessor with respect to the acquired 

3 trade or business as is attributable to the por4 tion of such trade or business acquired by the 

5 employer. 

6 (B) DISPOSITIONS.—If, after December 

7 31, 2009— 

8 (i) an employer disposes of the major 

9 portion of any trade or business of the em10 ployer or the major portion of a separate 

11 unit of a trade or business of the employer 

12 in a transaction to which paragraph (1) 

13 applies, and 

14 (ii) the employer furnishes the acquir15 ing person such information as is nec16 essary for the application of subparagraph 

17 (A), 

18 then, for purposes of applying this section for 

19 any calendar quarter ending after such disposi20 tion, the amount of wages or compensation 

21 deemed paid by the employer during periods be22 fore such disposition shall be reduced by so 

23 much of such wages as is attributable to such 

24 trade or business or separate unit. 


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1 (7) EMPLOYERS NOT ON QUARTERLY SYS2 TEM.—The Secretary of the Treasury shall prescribe 

3 rules for the application of this section in the case 

4 of an eligible employer whose required income tax 

5 deposits are not made on a quarterly basis. 

Æ 


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