Page:United States Statutes at Large Volume 98 Part 3.djvu/775

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PUBLIC LAW 98-000—MMMM. DD, 1984

PUBLIC LAW 98-601—OCT. 30, 1984

98 STAT. 3147

Public Law 98-601 98th Congress An Act To amend the Tax Equity and Fiscal Responsibility Act of 1982 with respect to the effect of the 1985 increase in the Federal unemployment tax rate on certain snuall business provisions contained in State unemployment compensation laws.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the subsection (b) of section 271 of the Tax Equity and Fiscal Responsibility Act of 1982, relating to effective dates for such section, is redesignated as subsection (d) and is amended by adding at the end thereof the following new paragraph: "(4) TRANSITIONAL RULE FOR CERTAIN SMALL BUSINESSES.— "(A) IN GENERAL.—Notwithstanding section 3303 of the Internal Revenue Code of 1954, in the case of taxable years beginning after December 31, 1984, and before January 1, 1989, a taxpayer shall be allowed the additional credit under section 3302(b) of such Code with respect to any employee covered by a qualified small business provision if the requirements of subparagraph (B) are met with respect to such employee. "(B) REQUIREMENTS.—The requirements of this subparagraph are met for any taxable year with respect to any employee covered by a qualified small business provision if the amount of contributions required to be paid for the taxable year to the unemployment fund of the State with respect to such employee are not less than the product of the required rate multiplied by the wages paid by the employer during the taxable year. (C) REQUIRED RATE.—For purposes of subparagraph (B), the required rate for any taxable year is the sum of— (i) 3.1 percent, plus "(ii) the applicable percentage (as defined in paragraph (3)(D)) of the excess of 5.4 percent over the rate described in clause (i). "(D) QUALIFIED SMALL BUSINESS PROVISION.—For purposes of this paragraph, the term 'qualified small business provision' means a provision contained in a State unemployment compensation law (as in effect on the date of the enactment of this paragraph) which provides a maximum rate at which an employer is subject to contribution for wages paid during a calendar quarter if the total wages paid by such employer during such calendar quarter are less than $50,000. "(E) DEFINITION.—For purposes of this paragraph, the term 'wages' means the remuneration subject to contributions under the State unemployment compensation law, except that for purposes of subparagraph (D) the amount of

Q-X QQ ^004 ' [H.R. 6112]

26 USC 3301 note, 3302 note, 26 USC 3302 note. 26 USC 3303.