Page:United States Statutes at Large Volume 124.djvu/3335

 124 STAT. 3309 PUBLIC LAW 111–312—DEC. 17, 2010 unemployment benefits provided under such section 2(c)(2)(D) by reason of the amendments made by subsection (a) as well as to cover the cost of such benefits provided under such section 2(c)(2)(D), as in effect on the day before the date of the enactment of this Act. TITLE VI—TEMPORARY EMPLOYEE PAYROLL TAX CUT SEC. 601. TEMPORARY EMPLOYEE PAYROLL TAX CUT. (a) IN GENERAL.—Notwithstanding any other provision of law— (1) with respect to any taxable year which begins in the payroll tax holiday period, the rate of tax under section 1401(a) of the Internal Revenue Code of 1986 shall be 10.40 percent, and (2) with respect to remuneration received during the payroll tax holiday period, the rate of tax under 3101(a) of such Code shall be 4.2 percent (including for purposes of determining the applicable percentage under sections 3201(a) and 3211(a)(1) of such Code). (b) COORDINATION WITH DEDUCTIONS FOR EMPLOYMENT TAXES.— (1) DEDUCTION IN COMPUTING NET EARNINGS FROM SELF- EMPLOYMENT.—For purposes of applying section 1402(a)(12) of the Internal Revenue Code of 1986, the rate of tax imposed by subsection 1401(a) of such Code shall be determined without regard to the reduction in such rate under this section. (2) INDIVIDUAL DEDUCTION.—In the case of the taxes imposed by section 1401 of such Code for any taxable year which begins in the payroll tax holiday period, the deduction under section 164(f) with respect to such taxes shall be equal to the sum of— (A) 59.6 percent of the portion of such taxes attrib- utable to the tax imposed by section 1401(a) (determined after the application of this section), plus (B) one-half of the portion of such taxes attributable to the tax imposed by section 1401(b). (c) PAYROLL TAX HOLIDAY PERIOD.—The term ‘‘payroll tax holi- day period’’ means calendar year 2011. (d) EMPLOYER NOTIFICATION.—The Secretary of the Treasury shall notify employers of the payroll tax holiday period in any manner the Secretary deems appropriate. (e) TRANSFERS OF FUNDS.— (1) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSUR- ANCE TRUST FUND.—There are hereby appropriated to the Fed- eral Old-Age and Survivors Trust Fund and the Federal Dis- ability 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 application of subsection (a). Amounts appropriated by the pre- ceding 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. (2) TRANSFERS TO SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT.—There are hereby appropriated to the Social Security Appropriation authorization. Definition. 26 USC 1401 note.