223 
accuracy of any agreement or information which was 
previously made or provided. 
‘‘(c) BOND
AND INDEPENDENT FINANCIAL RE-
VIEW.— 
‘‘(1) IN GENERAL.—An organization meets the 
requirements of this paragraph if such organiza-
tion— 
‘‘(A) meets the bond requirements of para-
graph (2), and 
‘‘(B) meets the independent financial re-
view requirements of paragraph (3). 
‘‘(2) BOND.— 
‘‘(A) IN
GENERAL.—A certified profes-
sional employer organization meets the require-
ments of this paragraph if the organization has 
posted a bond for the payment of taxes under 
subtitle C (in a form acceptable to the Sec-
retary) that is in an amount at least equal to 
the amount specified in subparagraph (B). 
‘‘(B) AMOUNT OF BOND.— 
‘‘(i) IN
GENERAL.—For the period 
April 1 of any calendar year through 
March 31 of the following calendar year, 
the amount of the bond required is equal 
to the greater of— 
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‘‘(I) 5 percent of the organiza-
tion’s liability under section 3511 for 
taxes imposed by subtitle C during the 
preceding calendar year (but not to 
exceed $1,000,000), or 
‘‘(II) $50,000. 
‘‘(ii) SPECIAL RULE FOR NEWLY CRE-
ATED PROFESSIONAL EMPLOYER ORGANI-
ZATIONS.—During the first three full cal-
endar years that an organization is in ex-
istence, subclause (I) of clause (i) shall not 
apply. For this purpose— 
‘‘(I) under rules provided by the 
Secretary, an organization is treated 
as in existence as of the date that 
such organization began providing 
services to any customer which were 
comparable to the services being pro-
vided with respect to work site em-
ployees, regardless of whether such 
date occurred before or after the orga-
nization is certified under subsection 
(b), and 
‘‘(II) an organization with liabil-
ity under section 3511 for taxes im-
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posed by subtitle C during the pre-
ceding calendar year in excess of 
$5,000,000 shall no longer be de-
scribed in this clause (ii) as of April 
1 of the year following such calendar 
year. 
‘‘(3) INDEPENDENT
FINANCIAL
REVIEW
RE-
QUIREMENTS.—A certified professional employer or-
ganization meets the requirements of this paragraph 
if such organization— 
‘‘(A) has, as of the most recent audit date, 
caused to be prepared and provided to the Sec-
retary (in such manner as the Secretary may 
prescribe) an opinion of an independent cer-
tified public accountant as to whether the cer-
tified professional employer organization’s fi-
nancial statements are presented fairly in ac-
cordance with generally accepted accounting 
principles, and 
‘‘(B) provides to the Secretary an assertion 
regarding Federal employment tax payments 
and an examination level attestation on such 
assertion from an independent certified public 
accountant not later than the last day of the 
second month beginning after the end of each 
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226 
calendar quarter. Such assertion shall state 
that the organization has withheld and made 
deposits of all taxes imposed by chapters 21, 
22, and 24 of the Internal Revenue Code in ac-
cordance with regulations imposed by the Sec-
retary for such calendar quarter and such ex-
amination level attestation shall state that such 
assertion is fairly stated, in all material re-
spects. 
‘‘(4) CONTROLLED
GROUP
RULES.—For pur-
poses of the requirements of paragraphs (2) and (3), 
all professional employer organizations that are 
members of a controlled group within the meaning 
of sections 414(b) and (c) shall be treated as a sin-
gle organization. 
‘‘(5) FAILURE TO FILE ASSERTION AND ATTES-
TATION.—If the certified professional employer orga-
nization fails to file the assertion and attestation re-
quired by paragraph (3) with respect to any cal-
endar quarter, then the requirements of paragraph 
(3) with respect to such failure shall be treated as 
not satisfied for the period beginning on the due 
date for such attestation. 
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‘‘(6) AUDIT DATE.—For purposes of paragraph 
(3)(A), the audit date shall be six months after the 
completion of the organization’s fiscal year. 
‘‘(d) SUSPENSION AND REVOCATION AUTHORITY.— 
The Secretary may suspend or revoke a certification of 
any person under subsection (b) for purposes of section 
3511 if the Secretary determines that such person is not 
satisfying the agreements or requirements of subsections 
(b) or (c), or fails to satisfy applicable accounting, report-
ing, payment, or deposit requirements. 
‘‘(e) WORK SITE EMPLOYEE.—For purposes of this 
title— 
‘‘(1) IN GENERAL.—The term ‘work site em-
ployee’ means, with respect to a certified profes-
sional employer organization, an individual who— 
‘‘(A) performs services for a customer pur-
suant to a contract which is between such cus-
tomer and the certified professional employer 
organization and which meets the requirements 
of paragraph (2), and 
‘‘(B) performs services at a work site 
meeting the requirements of paragraph (3). 
‘‘(2) SERVICE
CONTRACT
REQUIREMENTS.—A 
contract meets the requirements of this paragraph 
with respect to an individual performing services for 
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a customer if such contract is in writing and pro-
vides that the certified professional employer organi-
zation shall— 
‘‘(A) assume responsibility for payment of 
wages to the individual, without regard to the 
receipt or adequacy of payment from the cus-
tomer for such services, 
‘‘(B) assume responsibility for reporting, 
withholding, and paying any applicable taxes 
under subtitle C, with respect to the individ-
ual’s wages, without regard to the receipt or 
adequacy of payment from the customer for 
such services, 
‘‘(C) assume responsibility for any em-
ployee benefits which the service contract may 
require the certified professional employer orga-
nization to provide, without regard to the re-
ceipt or adequacy of payment from the cus-
tomer for such services, 
‘‘(D) assume responsibility for hiring, fir-
ing and for recruiting workers in addition to 
the customer’s responsibility for recruiting, hir-
ing, and firing workers, 
‘‘(E) maintain employee records relating to 
the individual, and 
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‘‘(F) agree to be treated as a certified pro-
fessional employer organization for purposes of 
section 3511 with respect to such individual. 
‘‘(3) WORK SITE COVERAGE REQUIREMENT.— 
The requirements of this paragraph are met with re-
spect to an individual if at least 85 percent of the 
individuals performing services for the customer at 
the work site where such individual performs serv-
ices are subject to 1 or more contracts with the cer-
tified professional employer organization which meet 
the requirements of paragraph (2) (but not taking 
into account those individuals who are excluded em-
ployees within the meaning of section 414(q)(5)). 
‘‘(f) DETERMINATION OF EMPLOYMENT STATUS.— 
Except to the extent necessary for purposes of section 
3511, nothing in this section shall be construed to affect 
the determination of who is an employee or employer for 
purposes of this title. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 3302 is amended by adding at the 
end the following new subsection: 
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‘‘(h) TREATMENT OF CERTIFIED PROFESSIONAL EM-
PLOYER ORGANIZATIONS.—If a certified professional em-
ployer organization (as defined in section 7706), or a cus-
tomer of such organization, makes a contribution to the 
State’s unemployment fund with respect to a work site 
employee, such organization shall be eligible for the credits 
available under this section with respect to such contribu-
tion.’’. 
(2) Section 3303(a) is amended— 
(A) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’ and by in-
serting after paragraph (3) the following new 
paragraph: 
‘‘(4) if the taxpayer is a certified professional 
employer organization (as defined in section 7706) 
that is treated as the employer under section 3511, 
such certified professional employer organization is 
permitted to collect and remit, in accordance with 
paragraphs (1), (2), and (3), contributions during 
the taxable year to the State unemployment fund 
with respect to a work site employee.’’, and 
(B) in the last sentence— 
(i) by striking ‘‘paragraphs (1), (2), and 
(3)’’ and inserting ‘‘paragraphs (1), (2), (3), 
and (4)’’, and 
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(ii) by striking ‘‘paragraph (1), (2), or 
(3)’’ and inserting ‘‘paragraph (1), (2), (3), or 
(4)’’. 
(3) Section 6053(c) is amended by adding at 
the end the following new paragraph: 
‘‘(8) CERTIFIED PROFESSIONAL EMPLOYER OR-
GANIZATIONS.—For purposes of any report required 
by this subsection, in the case of a certified profes-
sional employer organization that is treated, under 
section 3511, as the employer of a work site em-
ployee, the customer with respect to whom a work 
site employee performs services shall be the employer 
for purposes of reporting under this section and the 
certified professional employer organization shall 
furnish to the customer any information necessary 
to complete such reporting no later than such time 
as the Secretary shall prescribe.’’. 
(d) CLERICAL AMENDMENTS.— 
(1) The table of sections for chapter 25 is 
amended by adding at the end the following new 
item: 
‘‘Sec. 3511. Certified professional employer organizations.’’. 
(2) The table of sections for chapter 79, as 
amended by the preceding provisions of this Act, is 
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amended by adding at the end the following new 
item: 
‘‘Sec. 7706. Certified professional employer organizations.’’. 
(e) REPORTING
REQUIREMENTS
AND
OBLIGA-
TIONS.—The Secretary of the Treasury shall develop such 
reporting and recordkeeping rules, regulations, and proce-
dures as the Secretary determines necessary or appro-
priate to ensure compliance with the amendments made 
by this section with respect to entities applying for certifi-
cation as certified professional employer organizations or 
entities that have been so certified. Such rules shall be 
designed in a manner which streamlines, to the extent pos-
sible, the application of requirements of such amendments, 
the exchange of information between a certified profes-
sional employer organization and its customers, and the 
reporting and recordkeeping obligations of the certified 
professional employer organization. 
(f) USER FEES.—Subsection (b) of section 7528 is 
amended by adding at the end thereof the following new 
paragraph: 
‘‘(4) CERTIFIED PROFESSIONAL EMPLOYER OR-
GANIZATIONS.—The fee charged under the program 
in connection with the certification by the Secretary 
of a professional employer organization under sec-
tion 7706 shall be an annual fee not to exceed 
$1,000 per year.’’. 
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(g) EFFECTIVE DATES.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to wages for 
services performed on or after January 1 of the first 
calendar year beginning more than 12 months after 
the date of the enactment of this Act. 
(2) CERTIFICATION PROGRAM.—The Secretary 
of the Treasury shall establish the certification pro-
gram described in section 7706(b) of the Internal 
Revenue Code of 1986, as added by this section, not 
later than 6 months before the effective date deter-
mined under paragraph (1). 
(h) NO INFERENCE.—Nothing contained in this sec-
tion or the amendments made by this section shall be con-
strued to create any inference with respect to the deter-
mination of who is an employee or employer— 
(1) for Federal tax purposes (other than the 
purposes set forth in the amendments made by this 
section), or 
(2) for purposes of any other provision of law. 
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Subtitle G—Pensions and 
Retirement 
PART 1—INDIVIDUAL RETIREMENT PLANS 
SEC. 1601. ELIMINATION OF INCOME LIMITS ON CONTRIBU-
TIONS TO ROTH IRAs. 
(a) IN GENERAL.—Subsection (c) of section 408A is 
amended by striking paragraph (3). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 1602. NO NEW CONTRIBUTIONS TO TRADITIONAL IRAs. 
(a) IN GENERAL.— 
(1) INDIVIDUAL
RETIREMENT
ACCOUNTS.— 
Paragraph (1) of section 408(a) is amended by 
striking ‘‘in excess of the amount’’ and all that fol-
lows through the end and inserting the following: 
‘‘unless it is a contribution under a simplified em-
ployee pension described in subsection (k) not in ex-
cess of the amount of the limitation in effect for 
such taxable year under section 415(c)(1)(A), a con-
tribution to a simple retirement account described in 
subsection (p) not in excess of the amount described 
in section 408(p)(8) for such taxable year, or a con-
tribution to a Roth IRA described in section 408A 
not in excess of the amount in effect for the taxable 
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