Title: Support for Workers, Families, and Social Security Act
Policy area: Taxation

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8201 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8201

          To provide a temporary employee payroll tax holiday.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 11, 2020

   Mr. Brady (for himself, Mr. Marchant, Mr. Scalise, Mr. Reed, Mr. 
    Steube, Mr. Flores, Mr. Kustoff of Tennessee, Mr. Rice of South 
Carolina, Mr. Kevin Hern of Oklahoma, Mr. Wenstrup, Mr. Arrington, Mrs. 
Miller, Mr. LaMalfa, Mr. Estes, Mr. Smucker, Mr. Smith of Nebraska, Mr. 
   Marshall, and Mr. Olson) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
          To provide a temporary employee payroll tax holiday.

    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 ``Support for Workers, Families, and 
Social Security Act''.

SEC. 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) of the Internal Revenue Code of 1986 
        shall be reduced by the applicable number of percentage points 
        determined under subsection (d), and
            (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) of 
        the Internal Revenue Code of 1986, the rate of tax imposed by 
        section 1401(a) of such Code shall be determined without regard 
        to the reduction in such rate under this section.
            (2) Individual deduction.--For purposes of determining the 
        deduction allowed under section 164(f) of the Internal Revenue 
        Code of 1986, the taxes imposed under section 1401 of such Code 
        shall be treated as being equal to the amount of such taxes 
        determined without regard to the reduction in the rate of tax 
        provided under subsection (a)(1).
    (c) Payroll Tax Holiday Period.--For purposes of this section, the 
term ``payroll tax holiday period'' means the period beginning on 
September 1, 2020, and ending on December 31, 2020.
    (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.

SEC. 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) amounts equal to the reduction in revenues to the Treasury by 
reason of the application of section 2(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 Trust Fund had such 
amendments not been enacted.
    (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)) amounts equal to the reduction in 
revenues to the Treasury by reason of the application of section 
2(a)(2). 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 such amendments not been enacted.

SEC. 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.
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