Title: Protecting Employees from Surprise Taxes Act of 2020
Policy area: Taxation

Summary:
Protecting Employees from Surprise Taxes Act of 2020
This bill prohibits employers from deferring payment of payroll taxes unless affected employees provide written consent to a deferral. Employers must also provide notice to their employees of the right to provide or withhold written consent and the future tax liability resulting from providing consent to the deferral of such taxes.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4810 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4810

     To require employee consent for any deferral of payroll taxes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 19, 2020

  Mr. Van Hollen (for himself, Mr. Wyden, Mr. Warner, Mr. Markey, Ms. 
 Warren, Mr. Bennet, Ms. Sinema, Mr. Cardin, Mr. Reed, Mr. Kaine, Mr. 
 Blumenthal, Mr. Whitehouse, Ms. Hirono, Mr. Durbin, Mr. Manchin, Mrs. 
Murray, Mrs. Feinstein, and Ms. Collins) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To require employee consent for any deferral of payroll taxes.

    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 ``Protecting Employees from Surprise 
Taxes Act of 2020''.

SEC. 2. REQUIREMENT OF EMPLOYEE CONSENT FOR ANY DEFERRAL OF PAYROLL 
              TAXES.

    (a) In General.--In the case of an employee of any employer, 
including any Federal Government employer, the withholding and payment 
of the tax imposed by section 3101(a) of the Internal Revenue Code of 
1986, and so much of the tax imposed by section 3201 of such Code as is 
attributable to the rate in effect under such section 3101(a), with 
respect to such employee shall not be deferred pursuant to section 
7508A of such Code for any pay period ending after the date of the 
enactment of this Act, unless the employee provides written consent to 
such deferral to the employer.
    (b) Liability for Failure To Remit Taxes.--In the case of any 
employee who does not provide the written consent required under 
subsection (a), the employer of such employee shall be solely liable 
according to the rules of the Internal Revenue Code of 1986 for any 
failure to withhold and remit the taxes described in such subsection.
    (c) Notice.--Each employer who participates in any deferral of the 
withholding and payment of the taxes imposed by sections 3101(a) and 
3201 of the Internal Revenue Code of 1986 pursuant to section 7508A of 
such Code shall provide notice, in such manner as the Secretary of the 
Treasury (or the Secretary's delegate) may prescribe as soon as 
possible after the date of the enactment of this Act, to each employee 
of the employer of the employee's right to provide or withhold written 
consent under this section, and of the future tax liability which would 
be incurred as a result of providing consent to the deferral of such 
taxes.
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