The data collected on the gross earnings report is used to estimate future tax income and to compute taxes owed for the financial interchange between the railroad retirement and social security/Medicare programs.

Each employer is required by law (20 CFR 209.13) to report the gross earnings for each employee on the payroll whose social security number ends with the digits "30".

Gross earnings consist of all earnings taxable under the hospital insurance portion of the Tier I tax rate, including earnings above the annual creditable limit, sick pay, and miscellaneous compensation.

All employers are to submit their reports annually with monthly, quarterly, or annual breakdowns. Employers with 5,000 or more employees on their payroll during the year are required to provide a monthly or quarterly breakdown of the year's earnings. Employers with fewer than 5,000 employees may submit only an annual amount, although a monthly or quarterly breakdown is preferable.

Employers who have no employees with social security numbers ending with the digits "30" should either submit Form BA-11 stating "no employees to report", or e-mail us at actuary@rrb.gov. The e-mail subject line should state "Form BA-11" and the message should include your BA number, name, the statement "No employees to report on Form BA-11", and a contact official name and phone number.

• 3480 or 3490 compatible cartridge (preferably);

• Conventional magnetic tape;

• CD ROM in ASCII format;

• 31/2 floppy diskette in ASCII format; or

• Form BA-11, Report of Gross Earnings

Employers who are not able to submit their reports on magnetic tape or tape cartridge, or who have few employees to report, may submit a paper Form BA-11. However, we encourage the use of the Employer Reporting Program that you received from the Quality Reporting Service Center.

• Do not limit the amounts in the gross earnings report to the annual Tier I or Tier II creditable maximum amounts for the year.

• Ensure that the gross earnings amount reported for an employee is not less than the Tier I amount reported for the employee for the same year.

• Gross earnings reported on Form BA-11 and creditable compensation reported on Form BA-3a must both be reported on the same basis, either "paid" or "earned."

• Be sure to include in the gross earnings report any new employees hired in a year with a "30" social security number.

• Be sure to list all subsidiary BA numbers included in the gross earnings report on Form G-440, even if one or more BA numbers have no employees with a "30" social security number.

Employers who have difficulty with any of the reporting instructions for gross earnings reports should contact the Division of Benefit and Employment Analysis in the Bureau of the Actuary for assistance. See the Jurisdiction Referral Guide in Appendices.