Sec. 101. EXTENSION OF PAYROLL TAX HOLIDAY
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## SEC. 101 EXTENSION OF PAYROLL TAX HOLIDAY ###
(a)In General Subsection
(c)of section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (26 U.S.C. 1401 note) is amended to read as follows: > > ### “(c) Payroll Tax Holiday Period > > The term ‘payroll tax holiday period’ means— > > > #### “(1) > > in the case of the tax described in subsection (a)(1), calendar years 2011 and 2012, and > > > #### “(2) > > in the case of the taxes described in subsection (a)(2), the period beginning January 1, 2011, and ending February 29, 2012.” > . ###
(b)Special Rules for 2012 Section 601 of such Act (26 U.S.C. 1401 note) is amended by adding at the end the following new subsection: > > ### “(f) Special Rules for 2012 > > > #### “(1) Limitation on self-employment income > > In the case of any taxable year beginning in 2012, subsection (a)(1) shall only apply with respect to so much of the taxpayer’s self-employment income (as defined in section 1402(b) of the Internal Revenue Code of 1986) as does not exceed the excess (if any) of— > > > ##### “(A) > > $18,350, over > > > ##### “(B) > > the amount of wages and compensation received during the portion of the payroll tax holiday period occurring during 2012 subject to tax under section 3101(a) of such Code or section 3201(a) of such Code. > > > #### “(2) Coordination with deduction for employment taxes > > In the case of a taxable year beginning in 2012, subparagraph
(A)of subsection (b)(2) shall be applied as if it read as follows: > > > > > ##### ‘(A) > > > > the sum of— > > > > > > ###### ‘(i) > > > > 59.6 percent of the portion of such taxes attributable to the tax imposed by section 1401(a) of such Code (determined after the application of this section) on so much of self-employment income (as defined in section 1402(b) of such Code) as does not exceed the amount of self-employment income described in paragraph (1), plus > > > > > > ###### ‘(ii) > > > > one-half of the portion of such taxes attributable to the tax imposed by section 1401(a) of such Code (determined without regard to this section) on self-employment income (as so defined) in excess of such amount, plus’.’’ > > > > > ### “(c) Recapture of Excess Benefit > > Section 601 of such Act (26 U.S.C. 1401 note), as amended by subsection (b), is further amended by adding at the end the following new subsection: > > > ### “(g) Recapture of Excess Benefit > > > #### “(1) In general > > There is hereby imposed on the income of every individual a tax equal to 2 percent of the sum of wages (within the meaning of section 3121(a)(1) of the Internal Revenue Code of 1986) and compensation (to which section 3201(a) of such Code applies) received during the period beginning January 1, 2012, and ending February 29, 2012, to the extent the amount of such sum exceeds $18,350. > > > #### “(2) Regulations > > The Secretary of the Treasury or the Secretary’s delegate shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out this subsection, including guidance for payment by the employee of the tax imposed by paragraph (1).” > . ###
(d)Technical Amendments Paragraph
(2)of section 601(b) of such Act (26 U.S.C. 1401 note) is amended— ####
(1)by inserting “of such Code” after “164(f)”; ####
(2)by inserting “of such Code” after “1401(a)” in subparagraph (A); and ####
(3)by inserting “of such Code” after “1401(b)” in subparagraph (B). ###
(e)Effective Dates **[**[26 U.S.C. 1401 note](/us/usc/t26/s1401)**]** ####
(1)In general Except as provided in paragraph (2), the amendments made by this section shall apply to remuneration received, and taxable years beginning, after December 31, 2011. ####
(2)Technical amendments The amendments made by subsection
(d)shall take effect as if included in the enactment of section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. # TITLE II TEMPORARY EXTENSION OF UNEMPLOYMENT COMPENSATION PROVISIONS
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Sec. 101
EXTENSION OF PAYROLL TAX HOLIDAY
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