119-hr560

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 560 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 560

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

 January 20, 2025

 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 2025''.

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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