1. Short title
This Act may be cited as the “Guard and Military Reservist Pay Security Act”.
Guard and Military Reservist Pay Security Act
A BILL
To amend the Internal Revenue Code of 1986 to expand the employer wage credit for employees who are active duty members of the Uniformed Services.
2. Expansion of employer wage credit for employees who are active duty members of the Uniformed Services
Permanent extension— Section 45P of the Internal Revenue Code of 1986 is amended by striking subsection (f).
Expansion of credit—
Expansion to 100 percent of eligible differential wage payments— Subsection (a) of section 45P of the Internal Revenue Code of 1986 is amended by striking “20 percent of”.
Adjustment for inflation— Subsection (b) of section 45P of such Code is amended by adding at the end the following new paragraph:
“(4) Adjustment for inflation—In the case of any taxable year beginning after 2015, the $20,000 amount in paragraph (1) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 2014” for “calendar year 1992” in subparagraph (B) thereof.”
Applicability to all employers—
In general— Subsection (a) of section 45P of such Code, as amended by paragraph (1), is amended by striking “eligible small business employer” and inserting “eligible employer”.
Conforming amendments— Paragraph (3) of section 45P(b) of such Code is amended—
in subparagraph (A)—
by striking “eligible small business employer” and inserting “eligible employer”, and
by striking “any employer which” and all that follows and inserting “any employer which, under a written plan of the employer, provides eligible differential wage payments to every qualified employee of the employer.”, and
by striking “Eligible small business employer” in the heading and inserting “Eligible employer”.
Effective date— The amendments made by this section shall apply to payments made after December 31, 2014.