[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8194 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 8194

To amend the Internal Revenue Code of 1986 to exclude compensation from 
  secondary employment for certain taxpayers from the income tax and 
                             payroll taxes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 1, 2024

  Mr. Bacon 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 exclude compensation from 
  secondary employment for certain taxpayers from the income tax and 
                             payroll taxes.

    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 ``Second Job Tax Relief Act of 2024''.

SEC. 2. EXCLUSION OF COMPENSATION FOR CERTAIN SECONDARY EMPLOYMENT FROM 
              INCOME AND PAYROLL TAX.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139I the following new section:

``SEC. 139J. EARNED INCOME FROM ADDITIONAL EMPLOYMENT.

    ``(a) In General.--In the case of a qualifying taxpayer, gross 
income shall not include secondary employment compensation.
    ``(b) Phase-Out.--The amount of compensation excluded from gross 
income under subsection (a) (determined without regard to this 
subsection) shall be reduced (but not below zero) by the amount which 
bears the same ratio to the amount which is so excludable as--
            ``(1) the excess (if any) of--
                    ``(A) the taxpayer's modified adjusted gross income 
                (as defined in section 36(b)(2)(B)) for such taxable 
                year, over
                    ``(B) $100,000 ($150,000 in the case of a married 
                couple filing jointly), bears to
            ``(2) $50,000.
    ``(c) Secondary Employment Compensation.--
            ``(1) In general.--For purposes of this section, the term 
        `secondary employment compensation' means compensation received 
        for employment during a taxable year with respect to which an 
        individual has made an election under paragraph (2) for an 
        employer other than the primary employer of such individual.
            ``(2) Primary employer.--
                    ``(A) Election.--A taxpayer may elect to designate, 
                with respect to a taxable year, a primary employer if 
                such individual was compensated on an hourly basis for 
                not less than 2080 hours of work by such employer.
                    ``(B) Definition.--For purposes of this section, 
                the term `primary employer' means, with respect to a 
                taxable year, an employer designated by the taxpayer 
                under subparagraph (A).
    ``(d) Sunset.--Subsection (a) shall not apply to compensation 
earned in taxable years beginning after the date is that is 5 years 
after the date of the enactment of this section.''.
    (b) Application to Employment Taxes.--
            (1) Social security taxes.--
                    (A) In general.--Section 3121(a) of such Code is 
                amended by striking ``or'' at the end of paragraph 
                (22), by striking the period at the end of paragraph 
                (23) and inserting ``; or'', and by inserting after 
                paragraph (23) the following new paragraph:
            ``(24) any amount of compensation which is excludable from 
        gross income under section 139J.''.
                    (B) Trust funds held harmless.--There are hereby 
                appropriated to the Federal Old-Age and Survivors 
                Insurance Trust Fund, the Federal Disability Insurance 
                Trust Fund, and the Federal Hospital Insurance Trust 
                Fund amounts equivalent to the reduction in revenues to 
                each such Trust Fund, respectively, by reason of the 
                amendment made by subparagraph (A) (determined without 
                regard to this subparagraph). 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 this section 
                not been enacted.
            (2) Unemployment taxes.--Section 3306(b) of such Code is 
        amended by striking ``or'' at the end of paragraph (19), by 
        striking the period at the end of paragraph (20) and inserting 
        ``; or'', and by inserting after paragraph (20) the following 
        new paragraph:
            ``(21) any amount of compensation which is excludable from 
        gross income under section 139J.''.
            (3) Wage withholding.--Section 3401(a) of such Code is 
        amended by striking ``or'' at the end of paragraph (22), by 
        striking the period at the end of paragraph (23) and inserting 
        ``; or'', and by inserting after paragraph (23) the following 
        new paragraph:
            ``(24) any amount of compensation which is excludable from 
        gross income under section 139J.''.
    (c) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139I the following new item:

``Sec. 139J. Earned income from additional employment.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts received after the date of the enactment of this Act.
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