Pandemic Payroll Tax Suspension Act
Bill: H.R.6924 | Sponsor: Rep. Gosar, Paul A. (R-AZ)
Policy area: Taxation

Summary:
Pandemic Payroll Tax Suspension Act
This bill suspends payroll taxes (i.e., employment and self-employment taxes) in 2021 and 2022. The bill requires the transfer of funds from the Treasury to the Old-Age and Survivors Trust Fund, the Disability Trust Fund, and the Social Security Equivalent Benefit Account to compensate for the reduction in revenues resulting from the suspension of taxes under this bill.

To suspend payroll taxes for 2021 and 2022.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pandemic Payroll Tax Suspension 
Act''.

SEC. 2. SUSPENSION OF PAYROLL TAXES FOR 2021 AND 2022.

    (a) In General.--Notwithstanding any other provision of law--
            (1) with respect to any taxable year which begins in the 
        payroll tax suspension period, the rates of tax under section 
        1401 of the Internal Revenue Code of 1986 shall be 0 percent,
            (2) with respect to remuneration received for pay periods 
        ending during the payroll tax suspension period, the rates of 
        tax under 3101 of such Code shall be 0 percent (including for 
        purposes of determining the applicable percentage under 
        sections 3201(a) and 3211(a) of such Code), and
            (3) with respect to remuneration paid for pay periods 
        ending during the payroll tax suspension period, the rates of 
        tax under section 3111 of such Code shall be 0 percent 
        (including for purposes of determining the applicable 
        percentage under section 3221(a) of such Code).
    (b) Payroll Tax Suspension Period.--The term ``payroll tax 
suspension period'' means the period beginning on January 1, 2021, and 
ending on December 31, 2022.
    (c) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax suspension period in any manner the 
Secretary deems appropriate.
    (d) Transfers of Funds.--
            (1) 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) and the Federal Hospital 
        Insurance Trust Fund established under section 1817(a) of the 
        Social Security Act (42 U.S.C. 1395i(a)) amounts equal to the 
        reduction in revenues to the Treasury by reason of the 
        application of subsection (a). Amounts appropriated by the 
        preceding sentence shall be transferred from the general fund 
        at such times and in such manner as to replicate to the extent 
        possible the transfers which would have occurred to each such 
        Trust Fund had subsection (a) not been enacted.
            (2) 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)) 
        amounts equal to the reduction in revenues to the Treasury by 
        reason of the application of subsection (a). Amounts 
        appropriated by the preceding sentence shall be transferred 
        from the general fund at such times and in such manner as to 
        replicate to the extent possible the transfers which would have 
        occurred to such Account had subsection (a) not been enacted.
            (3) 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 rates of tax in 
        effect under section 3101 of such Code shall be determined 
        without regard to the reduction in such rate under this 
        section.
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