[Congressional Record (Bound Edition), Volume 160 (2014), Part 13]
[Extensions of Remarks]
[Page 18862]
[From the U.S. Government Publishing Office, www.gpo.gov]




            SUPPORTING SECTION 206 OF H.R. 647, THE ABLE ACT

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                          HON. PETER J. ROSKAM

                              of illinois

                    in the house of representatives

                      Thursday, December 11, 2014

  Mr. ROSKAM. Mr. Speaker, I was pleased to advocate for and support 
the recently passed H.R. 647, the ABLE Act, for the important benefits 
it offers to the disabled, and because of the additional clarity and 
equity it will provide for employers dealing with the IRS.
  Section 206 addresses an issue under current law and the 
interpretation of the IRS for employers that use the services of 
professional employer organizations (PEOs). For example, any PEO that 
qualifies as a statutory employer under the Internal Revenue Code is 
eligible to claim the Tip Tax Credit, instead of the restaurant for 
which the wait staff who directly perform the services and therefore 
earned the qualification for it.
  Under this system, some PEOs claim the credit themselves as the 
statutory employer, others administer the credit for the restaurants 
which they serve, and some restaurants claim the credit directly--only 
to be challenged in IRS audits.
  This provision of the ABLE Act provides important tax clarity for 
small businesses working with PEOs. I am pleased to have been able to 
help secure the passage of this legislation in the House of 
Representatives, and I urge its prompt consideration in the Senate.

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