1. Name of your national organization.

2. Page number and the total number of pages included in this report.  Example: Page 1 of 2.

3. Name and/or number of your reporting unit.

4. RRB code assigned to your type of unit. To obtain your unit code, contact your national organization.

5. Appropriate month or quarter and year. Example: Mar 2002 or 1st Q 2002.

6. Employee's last name followed by initials of first and middle names. Also, enter the employee's nine-digit social security number.

7. Employee's last daily pay rate for the report year exclusive of overtime and other allowances. Instructions for converting pay rates to daily rates are in Part C of these instructions.  Use the actual daily rate of pay if it is less than $100.  If the rate is equal or greater than $99.99, report $99.99. Do not report amounts in excess of $99.99. The last daily pay rate need be reported ONLY for the last month the employee worked in the year. This information is used, in certain situations, to determine the RUIA benefit rate.

8. Gross earnings and Tier I Medicare earnings both consist of all taxable compensation.  Include only amounts earned for services to your unit.

9. Employee Medicare tax withheld from the employee's earnings. Instructions for calculating withholding amounts are in Part B of these instructions.

10. Tier I creditable retirement compensation.

11. Tier I employee taxes withheld from the employee's earnings.

12. Tier II creditable retirement compensation.

13. Tier II employee taxes withheld from the employee's earnings.

14. Creditable RUIA compensation. Instructions for determining creditable RUIA compensation are in Part F of these instructions.

In October of each year, the RRB sends to each National Reporting Officer or National Secretary-Treasurer, notices of the earnings maximums and the Tier I, Tier II, Medicare tax, and RUIA contribution rates for the following year.

Enter the annual compensation maximums in the corresponding boxes on the OE-1. Compensation should not be taxed or reported in excess of the annual earnings maximums.  Tier I taxes are not assessed on earnings above the Tier I annual maximum limit and Tier II taxes are not assessed on earnings above the Tier II annual maximum limit.  There is no compensation maximum for Medicare tax.

An employee pays three payroll taxes, Tier I, Tier II, and Medicare tax.  Employees do not pay the RUIA contribution.  The employee and employer tax rates are the same for Tier I and Medicare, but are different for Tier II.  To calculate withholding, multiply the taxable earnings by:

1. The employee Tier I tax rate to obtain the Tier I tax.
2. The employee Tier II tax rate to obtain the Tier II tax.
3. The Medicare tax rate to obtain the Medicare tax.

To determine the daily rate of an employee paid on an:

HOURLY BASIS - Multiply the hourly rate by 8;
MONTHLY BASIS - Divide the monthly rate by 21.75;
ANNUAL BASIS - If the annual rate is adjusted for months employed, divide the annual rate by the months employed. Otherwise, divide the annual salary rate by 12. Divide the quotient by 21.75.

Form CT-1 is the IRS form used to report railroad retirement taxes. Form CT-1 is filed annually for taxes on earnings paid in a calendar year. If all employees' cumulative earnings are under the Tier II maximum, the cumulative gross earnings will also be the cumulative Tier I earnings and the cumulative Tier II earnings.

Enter the cumulative earnings totals and withholding totals in the appropriate spaces in the TAX CALCULATION WORKSHEET on the back of Form OE-1. The cumulative totals are the sums of the totals from all Forms OE-1 filed in the year. Enter the tax rates in Items A, B, and C on the worksheet and multiply by the earnings. The items from the TAX CALCULATION WORKSHEET are in the same order and directly correspond to items on Form CT-1. Transcribe the amounts from the worksheet to Form CT-1 using the "CT-1 references" column on the worksheet as a guide.

The cumulative yearly totals reported on the CT-1 should be equal to the totals of all four (4) OE-1's for the calendar year.

If an employee worked only for the system unit in a month, earnings are creditable under the RUIA up to the monthly RUIA maximum. If an employee of a system unit also worked for a railroad carrier in the same month, the employee's combined earnings are creditable up to the RUIA monthly maximum. If the combined earnings exceed the RUIA monthly maximum, the creditable RUIA compensation may be prorated or allocated between the two employers. The method of prorating is not set by the RRB but by agreement between the two employers. Any method which yields the correct total RUIA compensation is acceptable to the RRB.  If RUIA compensation is apportioned between the system unit and the railroad carrier, the system unit must retain, for the full payroll records retention period, the records of earnings paid by the carrier provided by the employee for determining the apportionment.

Method 1

One common method of apportioning RUIA compensation between two employers is for the system unit to report RUIA compensation only in the amount not reported by the primary employer. For example, the 2002 RUIA monthly maximum is $1,100. If both the system unit and the primary employer pay $1,000 in earnings for the month of January 2002, the primary employer reports RUIA compensation of $1,000 for January 2002 and the system unit reports $100. The sum of RUIA compensation reported by the two employers is $1,100 the maximum for the month.

Method 2