Support for Workers, Families, and Social Security Act

To provide a temporary employee payroll tax holiday. 1. Short title This Act may be cited as the Support for Workers, Families, and Social Security Act 2. Temporary employee payroll tax holiday (a) In general Notwithstanding any other provision of law— (1) with respect to any taxable year which includes any portion of the payroll tax holiday period, the rate of tax under section 1401(a) (2) with respect to remuneration received during the payroll tax holiday period, the rate of tax under 3101(a) of such Code shall be 0 percent (including for purposes of determining the applicable percentage under sections 3201(a) and 3211(a)(1) of such Code). (b) Coordination with deductions for employment taxes (1) Deduction in computing net earnings from self-employment For purposes of applying section 1402(a)(12) (2) Individual deduction For purposes of determining the deduction allowed under section 164(f) (c) Payroll tax holiday period For purposes of this section, the term payroll tax holiday period (d) Applicable number of percentage points (1) In general For purposes of subsection (a)(1), the applicable number of percentage points with respect to any individual for any taxable year is the number of percentage points that bears the same ratio to 6.2 percent as— (A) the number of days of the payroll tax holiday period which are in such taxable year, bears to (B) the number of days in such taxable year. (2) Phaseout based on self-employment income In the case of any individual whose self-employment income for any taxable year exceeds an amount equal to the contribution and benefit base for calendar year 2020 (as determined under section 230 of the Social Security Act), the applicable number of percentage points with respect to such individual for such taxable year (determined without regard to this paragraph) shall be reduced by an amount which bears the same ratio to such applicable number of percentage points as— (A) such excess, bears to (B) $68,850. (e) Employer notification The Secretary of the Treasury shall notify employers of the payroll tax holiday period in any manner the Secretary deems appropriate. (f) Coordination with other Federal laws For purposes of applying any provision of Federal law other than the provisions of the Internal Revenue Code of 1986, the rate of tax in effect under section 3101(a) of such Code shall be determined without regard to the reduction in such rate under this section. 3. Protection of Social Security Trust Funds (a) Transfers to Federal Old-Age and Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 (b) Transfers to social security equivalent benefit account There are hereby appropriated to the Social Security Equivalent Benefit Account established under section 15A(a) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231n–1(a) 4. No effect on Social Security benefits Nothing in this Act shall have any effect on the determination of any benefit under title II of the Social Security Act.

Summary: Support for Workers, Families, and Social Security Act This bill exempts employees from the payment of employment taxes for the period beginning on September 1, 2020, and ending on December 31, 2020. This exemption does not affect the determination of Social Security retirement benefits.