I 

112TH CONGRESS 

1ST SESSION H. R. 2868 

To amend the Internal Revenue Code of 1986 to provide payroll tax relief 

to encourage the hiring of unemployed individuals, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 8, 2011 

Mr. DOLD 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 provide 

payroll tax relief to encourage the hiring of unemployed 

individuals, and for other purposes. 

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 ‘‘Unemployed Workers 

5 Hiring Act of 2011’’. 

6 SEC. 2. TEMPORARY PAYROLL TAX REDUCTION FOR NEWLY 

7 HIRED EMPLOYEES. 

8 (a) EMPLOYER.— 

9 (1) IN GENERAL.—Paragraph (1) of section 

10 3111(d) of the Internal Revenue Code of 1986 is 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•HR 2868 IH

1 amended by striking so much as precedes subpara2 graph (A) and inserting the following: 

3 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

4 apply to wages paid by a qualified employer with re5 spect to employment of any qualified individual dur6 ing the 1-year period beginning with the date the in7 dividual’s employment with the employer began for 

8 services performed—’’. 

9 (2) QUALIFIED INDIVIDUAL.—Paragraph (3) of 

10 section 3111(d) of such Code is amended— 

11 (A) by striking subparagraphs (A) and (B) 

12 and inserting the following new subparagraphs: 

13 ‘‘(A) begins employment with a qualified 

14 employer during the 2-year period beginning 

15 after the date of the enactment of the Unem16 ployed Workers Hiring Act of 2011, 

17 ‘‘(B) certifies by signed affidavit, under 

18 penalties of perjury, that such individual on the 

19 day before the date the employee begins work 

20 for the employer was in receipt of unemploy21 ment compensation under State or Federal law 

22 or was unemployed and had exhausted the right 

23 to such unemployment compensation,’’, and 

24 (B) by striking ‘‘and’’ at the end of sub25 paragraph (C), by striking the period at the end 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•HR 2868 IH

1 of subparagraph (D), and by adding at the end 

2 the following new subparagraphs: 

3 ‘‘(E) prior to the date the employment 

4 with the employer begins, has not been em5 ployed by the employer at any time, and 

6 ‘‘(F) is employed on average at least 30 

7 hours of service per week.’’. 

8 (3) RECAPTURE.—Subsection (d) of section 

9 3111 of such Code is amended by adding at the end 

10 the following new paragraph: 

11 ‘‘(6) RECAPTURE.— 

12 ‘‘(A) IN GENERAL.—In any case in which 

13 an individual ceases to be a qualified individual 

14 with respect to the employer during the 1-year 

15 period beginning with the date the individual’s 

16 employment with the employer began, the tax 

17 imposed under subsection (a) with respect to in18 dividuals in his employ shall be increased by the 

19 amount such tax was reduced with respect to 

20 such individual by reason of paragraph (1). 

21 ‘‘(B) DUE DATE.—The increase in tax 

22 under subparagraph (A) shall be paid over to 

23 the Secretary— 

24 ‘‘(i) not later than 30 days after the 

25 date such individual first ceases to be a 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•HR 2868 IH

1 qualified individual during such 1-year pe2 riod, and 

3 ‘‘(ii) in the same manner as deposits 

4 are made under section 6302 of taxes im5 posed on such employer under subsection 

6 (a) with respect to individuals in his em7 ploy.’’. 

8 (b) EMPLOYEE.—Section 3101 of such Code is 

9 amended by adding at the end the following new sub10 section: 

11 ‘‘(d) TEMPORARY EXEMPTION FOR NEWLY HIRED

12 UNEMPLOYED INDIVIDUALS.—In the case of a qualified 

13 individual (as defined in section 3111(d)(3)) of a qualified 

14 employer (as defined in section 3111(d)(2)), subsection (a) 

15 shall not apply with respect to the wages of such individual 

16 with respect to employment with such employer during the 

17 1-year period beginning with the date such employee 

18 began work for such employer.’’. 

19 (c) APPLICATION TO RAILROAD RETIREMENT

20 TAXES.— 

21 (1) EMPLOYERS.— 

22 (A) IN GENERAL.—Paragraph (1) of sec23 tion 3221(c) of such Code is amended to read 

24 as follows: 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•HR 2868 IH

1 ‘‘(1) IN GENERAL.—In the case of compensa2 tion paid by a qualified employer— 

3 ‘‘(A) with respect to having a qualified in4 dividual in the employer’s employ for services 

5 rendered to such qualified employer, and 

6 ‘‘(B) during the 1-year period beginning 

7 with the date any qualified individual’s employ8 ment with such employer began, 

9 the applicable percentage under subsection (a) shall 

10 be equal to the rate of tax in effect under section 

11 3111(b) for the calendar year.’’. 

12 (2) QUALIFIED INDIVIDUAL.—Paragraph (3) of 

13 section 3221(c) of such Code is amended— 

14 (A) by striking subparagraphs (A) and (B) 

15 and inserting the following new subparagraphs: 

16 ‘‘(A) begins employment with a qualified 

17 employer during the 2-year period beginning 

18 after the date of the enactment of the Unem19 ployed Workers Hiring Act of 2011, 

20 ‘‘(B) certifies by signed affidavit, under 

21 penalties of perjury, that such individual on the 

22 day before the date the employee begins work 

23 for the employer was in receipt of unemploy24 ment compensation under State or Federal law 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

•HR 2868 IH

1 or was unemployed and had exhausted the right 

2 to such unemployment compensation,’’, and 

3 (B) by striking ‘‘and’’ at the end of sub4 paragraph (C), by striking the period at the end 

5 of subparagraph (D), and by adding at the end 

6 the following new subparagraphs: 

7 ‘‘(E) prior to the date the employment 

8 with the employer begins, has not been em9 ployed by the employer at any time, and 

10 ‘‘(F) is employed on average at least 30 

11 hours of service per week.’’. 

12 (3) RECAPTURE.—Subsection (c) of section 

13 3221 of such Code is amended by adding at the end 

14 the following new paragraph: 

15 ‘‘(6) RECAPTURE.— 

16 ‘‘(A) IN GENERAL.—In any case in which 

17 an individual ceases to be a qualified individual 

18 with respect to the employer during the 1-year 

19 period beginning with the date the individual’s 

20 employment with the employer began, the tax 

21 imposed under subsection (a) with respect to in22 dividuals in his employ shall be increased by the 

23 amount such tax was reduced with respect to 

24 such individual by reason of paragraph (1). 


rfrederick on DSK6VPTVN1PROD with BILLS
7 

•HR 2868 IH

1 ‘‘(B) DUE DATE.—The increase in tax 

2 under subparagraph (A) shall be paid over to 

3 the Secretary— 

4 ‘‘(i) not later than 30 days after the 

5 date such individual first ceases to be a 

6 qualified individual during such 1-year pe7 riod, and 

8 ‘‘(ii) in the same manner as deposits 

9 are made under section 6302 of taxes im10 posed on such employer under subsection 

11 (a) with respect to individuals in his em12 ploy.’’. 

13 (4) EMPLOYEE.—Section 3201 of such Code is 

14 amended by redesignating subsection (c) as sub15 section (d) and by inserting after subsection (b) the 

16 following new subsection: 

17 ‘‘(c) TEMPORARY EXEMPTION FOR NEWLY HIRED

18 UNEMPLOYED INDIVIDUALS.—In the case of a qualified 

19 individual (as defined in section 3221(c)(3)) employed by 

20 a qualified employer (as defined in section 3221(c)(2), the 

21 applicable percentage with respect to compensation re22 ceived during the 1-year period beginning with the date 

23 such qualified individual’s employment with such employer 

24 began shall be equal to the rate of tax in effect under sec25 tion 3101(b) for the calendar year.’’. 


rfrederick on DSK6VPTVN1PROD with BILLS
8 

•HR 2868 IH

1 (d) GUIDANCE.—The Secretary of the Treasury shall 

2 provide such guidance as is necessary or appropriate to 

3 carry out the purposes of the amendments made by this 

4 section. 

5 (e) TRANSFERS TO FEDERAL OLD-AGE AND SUR6 VIVORS INSURANCE TRUST FUND.—There are hereby ap7 propriated to the Federal Old-Age and Survivors Trust 

8 Fund and the Federal Disability Insurance Trust Fund 

9 established under section 201 of the Social Security Act 

10 (42 U.S.C. 401) amounts equal to the reduction in reve11 nues to the Treasury by reason of the amendments made 

12 by subsections (a) and (b). Amounts appropriated by the 

13 preceding sentence shall be transferred from the general 

14 fund at such times and in such manner as to replicate 

15 to the extent possible the transfers which would have oc16 curred to such Trust Fund had such amendments not 

17 been enacted. 

18 (f) TRANSFERS TO SOCIAL SECURITY EQUIVALENT

19 BENEFIT ACCOUNT.—There are hereby appropriated to 

20 the Social Security Equivalent Benefit Account estab21 lished under section 15A(a) of the Railroad Retirement 

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

23 reduction in revenues to the Treasury by reason of the 

24 amendments made by subsection (c). Amounts appro25 priated by the preceding sentence shall be transferred 


rfrederick on DSK6VPTVN1PROD with BILLS
9 

•HR 2868 IH

1 from the general fund at such times and in such manner 

2 as to replicate to the extent possible the transfers which 

3 would have occurred to such Account had such amend4 ments not been enacted. 

5 (g) EFFECTIVE DATE.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by this subsection 

8 shall apply to wages paid after the date of the enact9 ment of this Act. 

10 (2) RAILROAD RETIREMENT TAXES.—The 

11 amendments made by subsection (c) shall apply to 

12 compensation paid after the date of the enactment 

13 of this Act. 

Æ 


rfrederick on DSK6VPTVN1PROD with BILLS