Program Letter |
United States |
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Quality Reporting Service Center E-mail: qrsc@rrb.gov |
Phone: (312) 751- 4992 |
Letter No. 2003-02 | Date: January 14, 2003 |
TO: | National Reporting Officers |
SUBJECT: | Reminder Notice: Impact of Railroad Retirement and Survivors' Improvement Act of 2001 on your Tax Payments |
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Reminder |
The Railroad Retirement and Survivors’ Improvement Act of 2001 (RRSIA) reduced the Tier II railroad retirement tax rates and repealed the railroad retirement supplemental annuity work-hour tax paid by all rail organizations.This notice is a reminder of the RRSIA effect on Tier II payroll taxes and the supplemental annuity tax. | ||
Effects
on Tier II payroll tax
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The Tier II tax rate on rail employers and rail labor organizations decreased from 16.1 percent to 15.6 percent in 2002 and to 14.2 percent in 2003. The Tier II earnings base and employee Tier II tax rate for 2002 and 2003 are unchanged. | ||
Effects on supplemental annuity tax | The RRSIA repeals section 26 USCS 3221(c) and 26 USCS 3221(d) of the Internal Revenue Code that covered the supplemental annuity taxes and benefits payable. Effective January 1, 2002, the work-hour tax is no longer payable. Supplemental annuities provided by section 2(b) the Railroad Retirement Act (RRA) will continue to be paid. | ||
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New forms | The Railroad Retirement Board previously released revised Forms OE-1 and OE-1a (01-02) with updated instructions. Paper copies of the revised forms and instructions were mailed to you on March 6, 2002. If you need additional forms or instructions, please contact us. The possibility exists that your organization may have used a previous version of the form(s) (01-94) which included the supplemental work-hour tax calculation. The new versions of the forms are now available on the Internet. To access the forms, click on the following link www.rrb.gov/employer.html, then scroll down to “Labor Employers.” To avoid any problems, please advise your filers to destroy all versions of the Forms OE-1/1a with a revision date prior to January 2002. |
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Instructions for persons who may have deposited taxes in excess of the amount due | Use the following questions and answers as a guide to reconcile the amount of taxes paid.
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Questions | Please share this reminder notice with the local offices of your organizations. If you have further questions concerning these tax changes or need to request new forms, please contact the Quality Reporting Service Center at (312) 751-4992 or by e-mail at the address shown above. | ||
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Page last updated June 14, 2004 |