Sec. 202. Temporary suspension of payroll taxes
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Notwithstanding any other provision of law— with respect to remuneration received for pay periods ending during the payroll tax suspension period, the rate of tax under 3101(a) of the Internal Revenue Code of 1986 shall be 0 percent, with respect to compensation received for pay periods ending during the payroll tax suspension period, the rate of tax under 3201(a) of such Code shall be 0 percent, with respect to remuneration paid for pay periods ending during the payroll tax suspension period, the rate of tax under section 3111(a) of such Code shall be 0 percent (including for purposes of determining the applicable percentage under section 3221(a) of such Code), and with respect to self-employment income derived by an individual during the payroll tax suspension period, the rate of tax under section 1401(a) of such Code shall be 0 percent.
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. In the case of the taxes imposed by section 1401 of such Code for any taxable year which begins in the payroll tax holiday period, the deduction under section 164(f) of such Code with respect to such taxes shall be determined without regard to the reduction in such rate under this section.
For purposes of this section, the term payroll tax suspension period means the period beginning on the day after the date of the enactment of this Act and ending on December 31, 2020. For purposes of this section, the term wages means wages (as defined in section 3121(a) of the Internal Revenue Code of 1986) and compensation (as defined in section 3231(e) of such Code). Any term used in this section which is also used in chapter 21 or 22 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such chapter.
The Secretary of the Treasury (or such Secretary's delegate) shall notify employers of the payroll tax suspension period in any manner the Secretary deems appropriate. Section 2302(d)(2) of the CARES Act ( Public Law 116–136 ) is amended by striking January 1, 2021 and inserting the date of the enactment of the . RECOVERY Act The Secretary of the Treasury (or such Secretary’s delegate) shall issue such regulations or other guidance as necessary to carry out the purposes of this section.
There are hereby appropriated to the Federal Old-Age and Survivors Insurance 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 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 this section (without regard to this subsection). 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 or Account had this section not been enacted.
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.
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- 45 USC 231n–1(a)
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Sec. 202
Temporary suspension of payroll taxes
Cite45 USC 231n–1(a)
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