Pandemic Payroll Tax Suspension Act

Bill: 117-hr-6924
Sponsor: full_name: Rep. Gosar, Paul A. [R-AZ-4]
Introduced: 2022-03-03
Policy area: Taxation
Subjects: Appropriations

Disability assistance

Employment taxes

Government trust funds

Social security and elderly assistance
Latest action: action_date: 2022-03-03
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2022-03-03
action_desc: Introduced in House
text: <p><strong>Pandemic Payroll Tax Suspension Act</strong></p> <p>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.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 6924 IN THE HOUSE OF REPRESENTATIVES March 3, 2022 Mr. Gosar introduced the following bill; which was referred to the Committee on Ways and Means A BILL To suspend payroll taxes for 2021 and 2022.

1. Short title This Act may be cited as the Pandemic Payroll Tax Suspension Act . 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.