Who must file |
All employers covered under the Railroad Retirement
Act are subject to taxation under the Railroad
Retirement Tax Act (RRTA) and must file an annual
tax return, Form CT-1, Employer's Annual Railroad
Retirement Tax Return, with the Internal Revenue
Service (IRS). In addition,
any non-covered employer who pays compensation
subject to RRTA must file Form CT-1.
|
| Where to file |
All
Forms CT-1 are filed at:
Internal Revenue Service Center
Kansas City, MO 64999
|
| Due date |
Form
CT-1 for a calendar year is due at the IRS by
the last day of February of the following year.
|
| Obtaining Form
CT-1 |
Form
CT-1 is an IRS form, not a RRB form. The IRS
releases Form CT-1, and its separate instructions,
to employers in December. Form CT-1 is also
available on the IRS Internet site at www.irs.gov
. If you do not receive a Form CT-1 by December
31, contact the IRS. If you are still unable
to obtain Form CT-1, contact QRSC
at the number shown on the title page.
|
| Tax rates and
compensation bases |
The
RRB notifies employers in October each year
of the tax rates and compensation bases applicable
for the following year. This information is
also available on the RRB
website.
|
| How to make
tax deposits |
Railroad
retirement taxes are deposited with an authorized
financial institution or a Federal Reserve bank
or branch, either electronically or by using Form
8109. Taxes may not be paid to the IRS directly
nor to the RRB.
All employers are encouraged to make electronic
deposits. Depending on your tax liability in
the previous year, you may be required to make
your tax deposits electronically. See Form CT-1
for deposit requirements. Electronic deposits
are made using RRBLINK system or EFTPS system.
Contact RRB Budget and Fiscal section at (312)
751-4668 for more information on electronic
deposit systems.
Do not use
Form CT-2, Employee Representative's Quarterly
Railroad Retirement Tax Return, to make deposits.
Only Employee Representatives use Form CT-2.
|
| When to make
tax deposits |
In
general, your total RRTA tax liability in the
previous year determines the frequency of your
tax deposits. Each November, the IRS will notify
employers of their deposit frequency for the
coming calendar year. If you do not receive
a notification, you must determine your own
deposit status. See the deposit rules in the
Form CT-1 instructions.
|
| Supplemental
tax |
The Railroad Retirement
and Survivor's Improvement Act of 2001 (RRSIA)
repealed the Railroad Retirement Supplemental
Annuity Tax effective January 1, 2002.
Supplemental annuities provided under the Railroad
Retirement Act were not eliminated by the RRSIA,
but are now funded through the National Railroad
Retirement Investment Trust. |
| Medicare tax |
Form
CT-1 is also used to report the amount of SSA
Medicare tax paid. There is no corresponding
employee earnings report that must be filed
with the RRB for payment of the Medicare tax.
|
| Penalties and
interest |
The
law provides penalties for failure to file and
late filing of a Form CT-1 and failure to pay
taxes or late payment or deposit of taxes. Interest
is also charged on taxes deposited late at the
rate set by law. If you are unavoidably late
in filing or paying taxes, send an explanation
with Form CT-1. If taxes, which must be withheld,
are not withheld and paid, you may be subject
to a penalty of 100% of the unpaid taxes.
|
| RRB/IRS coordination |
The
IRS and the RRB have coordination procedures for
their respective functions concerning railroad
retirement. Form CT-1
information is sent to the RRB for tax reconciliation
with that employer's reported creditable compensation
for the year.
Representatives from the RRB have no authority
to give definitive answers to railroad retirement
tax questions. Questions about railroad retirement
taxes or completion of Form CT-1 may be directed
to a Quality Reporting Service
Center reporting specialist at the RRB.
However, it may be necessary for them to refer
you to an IRS railroad retirement tax specialist
for the answers to some questions about railroad
retirement taxes.
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