I 112th CONGRESS 1st Session H. R. 2868 IN THE HOUSE OF REPRESENTATIVES September 8, 2011 Mr. Dold introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide payroll tax relief to encourage the hiring of unemployed individuals, and for other purposes.

1.

Short title

This Act may be cited as the Unemployed Workers Hiring Act of 2011.

2.

Temporary payroll tax reduction for newly hired employees

(a)

Employer

(1)

In general

Paragraph (1) of section 3111(d) of the Internal Revenue Code of 1986 is amended by striking so much as precedes subparagraph (A) and inserting the following: (1)

In general

Subsection (a) shall not apply to wages paid by a qualified employer with respect to employment of any qualified individual during the 1-year period beginning with the date the individual’s employment with the employer began for services performed— . (2)

Qualified individual

Paragraph (3) of section 3111(d) of such Code is amended— (A)by striking subparagraphs (A) and (B) and inserting the following new subparagraphs: (A)begins employment with a qualified employer during the 2-year period beginning after the date of the enactment of the Unemployed Workers Hiring Act of 2011, (B)certifies by signed affidavit, under penalties of perjury, that such individual on the day before the date the employee begins work for the employer was in receipt of unemployment compensation under State or Federal law or was unemployed and had exhausted the right to such unemployment compensation, , and (B)by striking and at the end of subparagraph (C), by striking the period at the end of subparagraph (D), and by adding at the end the following new subparagraphs: (E)prior to the date the employment with the employer begins, has not been employed by the employer at any time, and (F)is employed on average at least 30 hours of service per week. . (3)

Recapture

Subsection (d) of section 3111 of such Code is amended by adding at the end the following new paragraph: (6)

Recapture

(A)

In general

In any case in which an individual ceases to be a qualified individual with respect to the employer during the 1-year period beginning with the date the individual’s employment with the employer began, the tax imposed under subsection (a) with respect to individuals in his employ shall be increased by the amount such tax was reduced with respect to such individual by reason of paragraph (1). (B)

Due date

The increase in tax under subparagraph (A) shall be paid over to the Secretary— (i)not later than 30 days after the date such individual first ceases to be a qualified individual during such 1-year period, and (ii)in the same manner as deposits are made under section 6302 of taxes imposed on such employer under subsection (a) with respect to individuals in his employ. . (b)

Employee

Section 3101 of such Code is amended by adding at the end the following new subsection: (d)

Temporary exemption for newly hired unemployed individuals

In the case of a qualified individual (as defined in section 3111(d)(3)) of a qualified employer (as defined in section 3111(d)(2)), subsection (a) shall not apply with respect to the wages of such individual with respect to employment with such employer during the 1-year period beginning with the date such employee began work for such employer. . (c)

Application to railroad retirement taxes

(1)

Employers

(A)

In general

Paragraph (1) of section 3221(c) of such Code is amended to read as follows: (1)

In general

In the case of compensation paid by a qualified employer— (A)with respect to having a qualified individual in the employer’s employ for services rendered to such qualified employer, and (B)during the 1-year period beginning with the date any qualified individual’s employment with such employer began, the applicable percentage under subsection (a) shall be equal to the rate of tax in effect under section 3111(b) for the calendar year.. (2)

Qualified individual

Paragraph (3) of section 3221(c) of such Code is amended— (A)by striking subparagraphs (A) and (B) and inserting the following new subparagraphs: (A)begins employment with a qualified employer during the 2-year period beginning after the date of the enactment of the Unemployed Workers Hiring Act of 2011, (B)certifies by signed affidavit, under penalties of perjury, that such individual on the day before the date the employee begins work for the employer was in receipt of unemployment compensation under State or Federal law or was unemployed and had exhausted the right to such unemployment compensation, , and (B)by striking and at the end of subparagraph (C), by striking the period at the end of subparagraph (D), and by adding at the end the following new subparagraphs: (E)prior to the date the employment with the employer begins, has not been employed by the employer at any time, and (F)is employed on average at least 30 hours of service per week. . (3)

Recapture

Subsection (c) of section 3221 of such Code is amended by adding at the end the following new paragraph: (6)

Recapture

(A)

In general

In any case in which an individual ceases to be a qualified individual with respect to the employer during the 1-year period beginning with the date the individual’s employment with the employer began, the tax imposed under subsection (a) with respect to individuals in his employ shall be increased by the amount such tax was reduced with respect to such individual by reason of paragraph (1). (B)

Due date

The increase in tax under subparagraph (A) shall be paid over to the Secretary— (i)not later than 30 days after the date such individual first ceases to be a qualified individual during such 1-year period, and (ii)in the same manner as deposits are made under section 6302 of taxes imposed on such employer under subsection (a) with respect to individuals in his employ. . (4)

Employee

Section 3201 of such Code is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: (c)

Temporary exemption for newly hired unemployed individuals

In the case of a qualified individual (as defined in section 3221(c)(3)) employed by a qualified employer (as defined in section 3221(c)(2), the applicable percentage with respect to compensation received during the 1-year period beginning with the date such qualified individual’s employment with such employer began shall be equal to the rate of tax in effect under section 3101(b) for the calendar year. . (d)

Guidance

The Secretary of the Treasury shall provide such guidance as is necessary or appropriate to carry out the purposes of the amendments made by this section. (e)

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) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by subsections (a) and (b). 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 had such amendments not been enacted. (f)

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 amendments made by subsection (c). 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 such amendments not been enacted. (g)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this subsection shall apply to wages paid after the date of the enactment of this Act. (2)

Railroad retirement taxes

The amendments made by subsection (c) shall apply to compensation paid after the date of the enactment of this Act.