An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Taxable Year

The annual accounting period used by a business or individual to calculate their income and taxes, usually coinciding with the calendar year.

Payroll Tax Deduction

A reduction in the amount of income subject to taxes that a business pays, specifically related to the wages and salaries paid to its employees.

Qualified Small Business

A business that meets specific criteria, such as having a limited number of employees (e.g., 15 or fewer full-time staff) and certain gross revenue levels, to be eligible for particular tax benefits.

Gross Receipts Test

A financial rule used to determine if a business's total income from sales, services, and other sources over a specific period is below a certain threshold, often used for tax purposes to classify small businesses.

Highly Compensated Employee

An employee who earns above a certain income level or owns a significant percentage of a company, as defined by IRS rules, and is often subject to different rules for employee benefits and deductions.

Internal Revenue Code of 1986

The main body of federal tax law in the United States, which outlines all the rules and regulations for taxation.