Bill > S3459

This bill, the Support Small Business Growth Act of 2025, amends the Internal Revenue Code to allow certain qualified small businesses to claim a payroll tax deduction. A qualified small business is defined as a business with no more than 15 full-time employees and that meets a gross receipts test, which is a measure of a business's total sales. The deduction is for amounts paid to designated full-time employees who are not highly compensated employees (meaning they earn above a certain threshold) and are among the lowest-paid workers in the company. The number of employees that can be designated for this deduction decreases over time, starting with 10 in 2026 and phasing out entirely after 2033. The deduction amount is limited to either 12% of the employee's wages or a specific dollar amount, which also decreases for additional employees designated, with a maximum of $8,000 for the first set of designated employees, $6,000 for one more, and $4,000 for another, if applicable. This provision aims to provide tax relief for small businesses by reducing their payroll tax burden.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3459/all-info