This legislation introduces a new payroll tax deduction for qualified small businesses , defined as those with no more than 15 full-time employees that also meet the gross receipts test. This deduction supplements existing wage deductions and applies to a designated number of the lowest-wage, non-highly compensated full-time employees. Businesses must certify their eligibility to the Secretary. The deduction for each designated employee is the lesser of 12 percent of their wages or a specific dollar amount, ranging from $4,000 to $8,000. The maximum number of employees eligible for this deduction starts at 10 in 2026 and gradually decreases annually, terminating for taxable years beginning after December 31, 2033. The provisions of this act are effective for taxable years beginning after December 31, 2025.