Jobs Momentum Act of 2010 - Allows a reduction in 2010 and 2011 of an employer's payroll taxes by a specified percentage of the amount by which such employer increases aggregate payroll over the preceding calendar year.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4680 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4680
To reduce the employer portion of payroll taxes in the case of
employers who expand payroll in 2010 and 2011.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 24, 2010
Mr. Ellsworth introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To reduce the employer portion of payroll taxes in the case of
employers who expand payroll in 2010 and 2011.
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 ``Jobs Momentum Act of 2010''.
SEC. 2. REDUCTION IN EMPLOYER PORTION OF PAYROLL TAX FOR CERTAIN
EMPLOYERS INCREASING PAYROLL.
(a) In General.--In the case of any calendar quarter beginning in
2010 or 2011, the aggregate amount of employer payroll tax deposits of
an employer shall be reduced (but not below zero) by an amount equal to
the applicable percentage of the payroll increase of such employer for
such calendar quarter.
(b) Definitions and Special Rules.--For purposes of this section--
(1) Employer payroll tax deposits.--The term ``employer
payroll tax deposits'' means deposits an employer is required
to make under section 6302 of the Internal Revenue Code of 1986
of taxes imposed on such employer under section 3111 of such
Code with respect to individuals in his employ.
(2) Applicable percentage.--The applicable percentage shall
be--
(A) in the case of any calendar quarter beginning
in 2010, 10 percent, and
(B) in the case of any calendar quarter beginning
in 2011, 5 percent.
(3) Payroll increase.--
(A) In general.--The term ``payroll increase''
means, with respect to an employer for a calendar
quarter, the excess (if any) of--
(i) the aggregate amount of qualified wages
(as defined in section 3121(a) of such Code)
paid by such employer to all employees for such
calendar quarter, over
(ii) aggregate amount of inflation adjusted
qualified wages paid by such employer to all
employees for the same calendar quarter in the
preceding calendar year.
(B) Qualified wages.--The term ``qualified wages''
means, with respect to an employee, so much of such
employee's wages (as defined in section 3121(a)) of
such Code) as does not exceed $32,000.
(C) Inflation adjusted qualified wages.--The term
``inflation adjusted qualified wages'' means an amount
equal to--
(i) qualified wages with respect to an
employee, multiplied by
(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year for which the reduction in
deposits under this section is being determined
occurs, determined by substituting `calendar
year 2009' for `calendar year 1992' in
subparagraph (B) thereof.
(4) Denial of double benefit.--The amount of any deduction
allowable to the employer under chapter 1 of such Code for
taxes paid under section 3111 of such Code with respect to
employment during any calendar quarter shall be reduced by the
amount by which the employer payroll tax deposits of such
employer are reduced under subsection (a) for such quarter.
(5) Wages must be for trade or business.--A rule similar to
the rule of section 51(f) of such Code shall apply.
(6) Adjustments for certain acquisitions, etc.--Under
regulations prescribed by the Secretary--
(A) Acquisitions.--If, after December 31, 2009, an
employer acquires the major portion of a trade or
business of another person (hereafter in this paragraph
referred to as the ``predecessor'') or the major
portion of a separate unit of a trade or business of a
predecessor, then, for purposes of applying this
section for any calendar quarter ending after such
acquisition, the amount of wages or compensation deemed
paid by the employer during periods before such
acquisition shall be increased by so much of such wages
or compensation paid by the predecessor with respect to
the acquired trade or business as is attributable to
the portion of such trade or business acquired by the
employer.
(B) Dispositions.--If, after December 31, 2009--
(i) an employer disposes of the major
portion of any trade or business of the
employer or the major portion of a separate
unit of a trade or business of the employer in
a transaction to which paragraph (1) applies,
and
(ii) the employer furnishes the acquiring
person such information as is necessary for the
application of subparagraph (A),
then, for purposes of applying this section for any
calendar quarter ending after such disposition, the
amount of wages or compensation deemed paid by the
employer during periods before such disposition shall
be reduced by so much of such wages as is attributable
to such trade or business or separate unit.
(7) Employers not on quarterly system.--The Secretary of
the Treasury shall prescribe rules for the application of this
section in the case of an eligible employer whose required
income tax deposits are not made on a quarterly basis.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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