I
119THCONGRESS
1
STSESSION 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
JANUARY20, 2025
Mr. B
ACONintroduced 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Second Job Tax Relief 4
Act of 2025’’. 5
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SEC. 2. EXCLUSION OF COMPENSATION FOR CERTAIN SEC-1
ONDARY EMPLOYMENT FROM INCOME AND 2
PAYROLL TAX. 3
(a) I
NGENERAL.—Part III of subchapter B of chap-4
ter 1 of the Internal Revenue Code of 1986 is amended 5
by inserting after section 139I the following new section: 6
‘‘SEC. 139J. EARNED INCOME FROM ADDITIONAL EMPLOY-7
MENT. 8
‘‘(a) I
NGENERAL.—In the case of a qualifying tax-9
payer, gross income shall not include secondary employ-10
ment compensation. 11
‘‘(b) P
HASE-OUT.—The amount of compensation ex-12
cluded from gross income under subsection (a) (deter-13
mined without regard to this subsection) shall be reduced 14
(but not below zero) by the amount which bears the same 15
ratio to the amount which is so excludable as— 16
‘‘(1) the excess (if any) of— 17
‘‘(A) the taxpayer’s modified adjusted 18
gross income (as defined in section 19
36(b)(2)(B)) for such taxable year, over 20
‘‘(B) $100,000 ($150,000 in the case of a 21
married couple filing jointly), bears to 22
‘‘(2) $50,000. 23
‘‘(c) S
ECONDARYEMPLOYMENTCOMPENSATION.— 24
‘‘(1) I
N GENERAL.—For purposes of this sec-25
tion, the term ‘secondary employment compensation’ 26
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means compensation received for employment during 1
a taxable year with respect to which an individual 2
has made an election under paragraph (2) for an 3
employer other than the primary employer of such 4
individual. 5
‘‘(2) P
RIMARY EMPLOYER.— 6
‘‘(A) E
LECTION.—A taxpayer may elect to 7
designate, with respect to a taxable year, a pri-8
mary employer if such individual was com-9
pensated on an hourly basis for not less than 10
2080 hours of work by such employer. 11
‘‘(B) D
EFINITION.—For purposes of this 12
section, the term ‘primary employer’ means, 13
with respect to a taxable year, an employer des-14
ignated by the taxpayer under subparagraph 15
(A). 16
‘‘(d) S
UNSET.—Subsection (a) shall not apply to 17
compensation earned in taxable years beginning after the 18
date is that is 5 years after the date of the enactment 19
of this section.’’. 20
(b) A
PPLICATION TOEMPLOYMENTTAXES.— 21
(1) S
OCIAL SECURITY TAXES.— 22
(A) I
N GENERAL.—Section 3121(a) of 23
such Code is amended by striking ‘‘or’’ at the 24
end of paragraph (22), by striking the period at 25
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the end of paragraph (23) and inserting ‘‘; or’’, 1
and by inserting after paragraph (23) the fol-2
lowing new paragraph: 3
‘‘(24) any amount of compensation which is ex-4
cludable from gross income under section 139J.’’. 5
(B) T
RUST FUNDS HELD HARMLESS .— 6
There are hereby appropriated to the Federal 7
Old-Age and Survivors Insurance Trust Fund, 8
the Federal Disability Insurance Trust Fund, 9
and the Federal Hospital Insurance Trust 10
Fund amounts equivalent to the reduction in 11
revenues to each such Trust Fund, respectively, 12
by reason of the amendment made by subpara-13
graph (A) (determined without regard to this 14
subparagraph). Amounts appropriated by the 15
preceding sentence shall be transferred from the 16
general fund at such times and in such manner 17
as to replicate to the extent possible the trans-18
fers which would have occurred to such Trust 19
Fund had this section not been enacted. 20
(2) U
NEMPLOYMENT TAXES .—Section 3306(b) 21
of such Code is amended by striking ‘‘or’’ at the end 22
of paragraph (19), by striking the period at the end 23
of paragraph (20) and inserting ‘‘; or’’, and by in-24
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serting after paragraph (20) the following new para-1
graph: 2
‘‘(21) any amount of compensation which is ex-3
cludable from gross income under section 139J.’’. 4
(3) W
AGE WITHHOLDING .—Section 3401(a) of 5
such Code is amended by striking ‘‘or’’ at the end 6
of paragraph (22), by striking the period at the end 7
of paragraph (23) and inserting ‘‘; or’’, and by in-8
serting after paragraph (23) the following new para-9
graph: 10
‘‘(24) any amount of compensation which is ex-11
cludable from gross income under section 139J.’’. 12
(c) C
LERICALAMENDMENT.—The table of sections 13
for part III of subchapter B of chapter 1 of such Code 14
is amended by inserting after the item relating to section 15
139I the following new item: 16
‘‘Sec. 139J. Earned income from additional employment.’’.
(d) EFFECTIVEDATE.—The amendments made by 17
this section shall apply to amounts received after the date 18
of the enactment of this Act. 19
Æ
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