‘‘(b) WORK OPPORTUNITY CREDIT AMOUNT.—For
purposes of this section, the work opportunity credit
amount for any calendar quarter is the amount of the
credit determined under section 51 (relating to work op-
portunity credit) in accordance with the following:
‘‘(1) MINIMUM
EMPLOYMENT
PERIODS.—For
purposes of applying section 51(i)(3), in lieu of the
hours of services actually performed by an individual
during any of the first 3 quarters of a calendar year,
an employer may make an estimate of the hours of
services an individual is reasonably expected to per-
form for the employer in such calendar year. The
employer shall adjust the deemed payments in ac-
cordance with subsection (c) for the last quarter of
such calendar year to reflect the hours of services
actually performed by such individual in such cal-
endar year.
‘‘(2) ELIGIBLE TAX-EXEMPT EMPLOYER.—The
term ‘eligible tax-exempt employer’ means any orga-
nization described in section 501(c)(3) and exempt
from tax under section 501(a) but only with respect
to activities of such organization which do not con-
stitute an unrelated trade or business.
‘‘(c) COORDINATION WITH DEPOSITORY REQUIRE-
MENTS.—
‘‘(1) IN GENERAL.—Any employer who is enti-
tled to treat any amount as a payment under sub-
section (a) for any calendar quarter may reduce, in
such manner as the Secretary may by regulations
prescribe, by a like amount, the amount otherwise
required to be deposited during such quarter by rea-
son of the employment tax liability of such employer.
‘‘(2) 
QUARTERLY
DETERMINATIONS.—The
amount of reduction permitted under paragraph (1)
for any calendar quarter shall be based on a sepa-
rate estimate for such quarter of the amount of
deemed payments to which the employer reasonably
expects to be entitled under subsection (a) for the
calendar year which includes such quarter and shall
be properly adjusted (under regulations prescribed
by the Secretary) to reflect the amount by which
prior reductions under subsection (a) during such
calendar year were in excess of, or less than, the
amounts which would be proper under such esti-
mate.
‘‘(3) YEAR-END ADJUSTMENTS.—
‘‘(A) EXCESS OF DEEMED PAYMENTS AL-
LOWABLE
OVER
DEPOSITORY
BENEFIT
CLAIMED.—If the amount of deemed payments
to which an employer is entitled under sub-
section (a) for any calendar year exceeds the
amount claimed by the employer under para-
graph (1) during such year, such excess shall be
treated for purposes of this title as an overpay-
ment made by such employer. For purposes of
determining interest, such overpayment shall be
treated as made on January 31 of the following
calendar year.
‘‘(B) DEPOSITORY BENEFIT CLAIMED EX-
CEEDS DEEMED PAYMENT ALLOWABLE.—If the
amount claimed by the employer under para-
graph (1) during the calendar year exceeds the
amount of deemed payments to which such em-
ployer is entitled under subsection (a) for such
year, such excess shall be treated for purposes
of this title as an underpayment of the tax im-
posed by this chapter for such calendar year.
For purposes of determining interest, such un-
derpayment shall be allocated ratably among
the calendar quarters in such year (or in such
other manner as the Secretary may by regula-
tions prescribe).
‘‘(d) PAYMENT TREATED AS MADE ON DUE DATE.—
Notwithstanding subsection (c), for purposes of deter-
mining interest, any deemed payment under subsection (a)
for any calendar quarter shall be treated as made on the
due date for the return for such quarter.
‘‘(e) EMPLOYMENT TAX LIABILITY.—For purposes
of this section, the term ‘employment tax liability’ means
liability for the taxes imposed by chapters 21 and 24.
‘‘(f) SOCIAL SECURITY TRUST FUNDS.—This section
shall not be construed to affect amounts appropriated
under sections 201 and 1817(a) of the Social Security Act.
‘‘(g) TERMINATION.—This section shall not apply to
wages paid to an individual who begins work for the em-
ployer after December 31, 2002.’’
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 25 of such Code is amended by adding at the
end the following new item:
‘‘Sec. 3511. Treatment of work opportunity wages as payment of
employment tax liability.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to individuals who begin work for
the employer after December 31, 1999.
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