I 112th CONGRESS 1st Session H. R. 477 IN THE HOUSE OF REPRESENTATIVES January 26, 2011 Mr. Braley of Iowa 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 extend the exemption from employer Social Security taxes with respect to previously unemployed individuals, and to extend the credit for the retention of such individuals.

1.

Short title

This Act may be cited as the Back to Work Extension Act of 2011.

2.

Payroll tax forgiveness for hiring unemployed workers

(a)

In general

Subsection (d) of section 3111 of the Internal Revenue Code of 1986 is amended— (1)by striking with respect to employment during the period beginning on the day after the date of the enactment of this subsection and ending on December 31, 2010, in paragraph (1) and inserting during the applicable period with respect to employment, (2)by striking January 1, 2011 in paragraph (3) and inserting January 1, 2012, (3)by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: (5)

Applicable period

For purposes of this subsection, the applicable period with respect to any qualified individual is the period beginning on the date the qualified individual begins employment with the employer and ending on the earlier of the day that is 1 year after such date or December 31, 2011. . (b)

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 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 Trust Fund had such amendments not been enacted. (c)

Application to Railroad Retirement Taxes

(1)

In general

Subsection (c) of section 3221 of the Internal Revenue Code of 1986 is amended— (A)by striking during the period beginning on the day after the date of the enactment of this subsection and ending on December 31, 2010, in paragraph (1) and inserting during the applicable period, (B)by striking January 1, 2011 in paragraph (3) and inserting January 1, 2012, and (C)by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: (5)

Applicable period

For purposes of subparagraph (A), the applicable period with respect to any qualified individual shall be the period beginning on the date the qualified individual begins employment with the employer and ending on the earlier of the day that is 1 year after such date or December 31, 2011. . (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 amendments made by paragraph (1). 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. (d)

Effective Dates

(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.