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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Jobs Momentum Act 
of 2010’’. 
SEC. 2. REDUCTION IN EMPLOYER PORTION OF PAYROLL 
TAX FOR CERTAIN EMPLOYERS INCREASING 
PAYROLL. 
(a) IN GENERAL.—In the case of any calendar quar-
ter beginning in 2010 or 2011, the aggregate amount of 
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employer payroll tax deposits of an employer shall be re-
duced (but not below zero) by an amount equal to the ap-
plicable percentage of the payroll increase of such em-
ployer for such calendar quarter. 
(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
(1) EMPLOYER PAYROLL TAX DEPOSITS.—The 
term ‘‘employer payroll tax deposits’’ means deposits 
an employer is required to make under section 6302 
of the Internal Revenue Code of 1986 of taxes im-
posed on such employer under section 3111 of such 
Code with respect to individuals in his employ. 
(2) APPLICABLE PERCENTAGE.—The applicable 
percentage shall be— 
(A) in the case of any calendar quarter be-
ginning in 2010, 10 percent, and 
(B) in the case of any calendar quarter be-
ginning in 2011, 5 percent. 
(3) PAYROLL INCREASE.— 
(A) IN GENERAL.—The term ‘‘payroll in-
crease’’ means, with respect to an employer for 
a calendar quarter, the excess (if any) of— 
(i) the aggregate amount of qualified 
wages (as defined in section 3121(a) of 
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such Code) paid by such employer to all 
employees for such calendar quarter, over 
(ii) aggregate amount of inflation ad-
justed qualified wages paid by such em-
ployer to all employees for the same cal-
endar quarter in the preceding calendar 
year. 
(B) QUALIFIED WAGES.—The term ‘‘quali-
fied wages’’ means, with respect to an em-
ployee, so much of such employee’s wages (as 
defined in section 3121(a)) of such Code) as 
does not exceed $32,000. 
(C) 
INFLATION
ADJUSTED
QUALIFIED 
WAGES.—The term ‘‘inflation adjusted qualified 
wages’’ means an amount equal to— 
(i) qualified wages with respect to an 
employee, multiplied by 
(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year for which the reduction in de-
posits under this section is being deter-
mined occurs, determined by substituting 
‘calendar year 2009’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
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(4) 
DENIAL
OF
DOUBLE
BENEFIT.—The 
amount of any deduction allowable to the employer 
under chapter 1 of such Code for taxes paid under 
section 3111 of such Code with respect to employ-
ment during any calendar quarter shall be reduced 
by the amount by which the employer payroll tax de-
posits of such employer are reduced under sub-
section (a) for such quarter. 
(5) WAGES
MUST
BE
FOR
TRADE
OR
BUSI-
NESS.—A rule similar to the rule of section 51(f) of 
such Code shall apply. 
(6) ADJUSTMENTS FOR CERTAIN ACQUISITIONS, 
ETC.—Under regulations prescribed by the Sec-
retary— 
(A) ACQUISITIONS.—If, after December 
31, 2009, an employer acquires the major por-
tion of a trade or business of another person 
(hereafter in this paragraph referred to as the 
‘‘predecessor’’) or the major portion of a sepa-
rate unit of a trade or business of a prede-
cessor, then, for purposes of applying this sec-
tion for any calendar quarter ending after such 
acquisition, the amount of wages or compensa-
tion deemed paid by the employer during peri-
ods before such acquisition shall be increased by 
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so much of such wages or compensation paid by 
the predecessor with respect to the acquired 
trade or business as is attributable to the por-
tion of such trade or business acquired by the 
employer. 
(B) DISPOSITIONS.—If, after December 
31, 2009— 
(i) an employer disposes of the major 
portion of any trade or business of the em-
ployer or the major portion of a separate 
unit of a trade or business of the employer 
in a transaction to which paragraph (1) 
applies, and 
(ii) the employer furnishes the acquir-
ing person such information as is nec-
essary for the application of subparagraph 
(A), 
then, for purposes of applying this section for 
any calendar quarter ending after such disposi-
tion, the amount of wages or compensation 
deemed paid by the employer during periods be-
fore such disposition shall be reduced by so 
much of such wages as is attributable to such 
trade or business or separate unit. 
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(7) EMPLOYERS
NOT
ON
QUARTERLY
SYS-
TEM.—The Secretary of the Treasury shall prescribe 
rules for the application of this section in the case 
of an eligible employer whose required income tax 
deposits are not made on a quarterly basis. 
Æ 
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