BA-11 (electronic Report of Gross Earnings (electronic equivalents)

REPORT OF GROSS EARNINGS FOR 2007

T h s circular letter is to inform you about the 2007 Gross Earnings report. The report is due
February 29,2008.
Form BA-11 has been changed to be consistent with other RRl3 forms and processes as well as to
conform to data processing standards established in 2000. Employers who submit magnetic
media should confirm that your report is properly formatted. The new BA-11 record layout
is included as an attachment and is also available under "Appendices" in the "Employer
Reporting Instructions" or "Labor Employer Reporting Instructions" found on our web site
at www.rrb.gov/mep/er info.asp.

Changes made to Form BA-11
The year covered by the report (item 1) has been expanded from two to four positions to include
the century (e.g. the current year will be represented as "2007" rather than "07"). The employer's
name field now includes a separate line (item 5b) to report another name if applicable. T h s is for
paper Forms BA-11 only. The employee's name field (item 7) has been expanded to 20 characters
for the surname and 15 characters for the first name. The middle initial follows the first name and
remains at 1 character. The overall field size is now 36 characters.

Purpose of collecting gross earnings reports
The gross earnings information is essential in determining computation of the financial
interchange with the Social Security Administration and the Centers for Medicare and Medicaid
Services. In addition, cash-flow projections of the social security equivalent benefit account and
railroad retirement account and cost estimates made for proposed amendments to laws
administered by the Railroad Retirement Board (RRl3) are dependent upon input developed from
the information collected.

How to report
The instructions and formats for submitting the gross earnings reports are contained in the Office
of Programs' "Employer Reporting Instructions" or "Labor Employer Reporting Instructions." A
copy of the most recent Form BA-11 (dated XX-XX) used to submit non-computer listings, is
available on our web site at m~w.n-b.gov/nlep/erfonns.asp under "Labor Reporting Forms" and
"Employer Reporting Forms." However, we encourage paper filers to use the Employer Reporting
Program whlch you received from the Quality Reporting Service Center. Also, all reports of gross
earnings, whether on paper, secure e-mail (Progmin Lctter 2007-XX), diskette, magnetic cartridge
or using File Transfer Protocol (FTP), are required to be accompanied by Form G-440, Report
Specifications Sheet.
The collection of information is required under Section 7(b)(6) of the Railroad Retirement Act and
is authorized for collection under OMB Control number 3220-0132. Further, each employer is
required by section 209.13 of the RRB's Regulations to submit a report of gross earnings. The
report includes the gross compensation amount for each employee on the payroll whose social
security number ends with the digits "30". Failure to report or the making of a false or fraudulent
report can result in criminal prosecution or civil penalties, or both.
.

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. However, pre-taxable deductions for cafeteria plans (also
known as flexible benefit plans) should be excluded from creditable compensation. For
hrther information on exclusions to creditable compensation see Part N , Chapter 11 of
the "Employer Reporting Instructions" or Part N , Chapter 3 of the "Labor Employer
Reporting Instructions".
Gross earnings are to be reported for the same time periods as used in determining the
employer's annual report of creditable compensation. The reported earnings should match
the sum of the tier 1, miscellaneous and sick pay compensation amounts submitted on
Form BA-3 (Annual Report of Creditable Compensation) for employees with earnings at
or below the annual credible limit.
Employers with 5,000 or more employees must 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.

Form BA-11 is not required if you have no employees with social security numbers ending with
the digits "30." Instead, check the appropriate box on the Form G-440, Report Specifications
Sheet, submitted with your Form BA-3, Annual Report of Creditable Compensation.
Completed gross earnings reports should be mailed to:
Railroad Retirement Board
Bureau of the Actuary
844 N. Rush Street
Chicago, IL 6061 1-2092

Estimated completion time

We estimate that the reporting of the gross earnings information by means of computer prepared
tape or File Transfer Protocol (FTP) takes an average of 5 hours per response to complete. This
estimate includes the time needed for reviewing the instructions, and for conducting the complete
range of computer-related tasks required of employers to develop, set-up and run a data processing
program for producing gross earnings reports.
We estimate that the reporting of the gross earnings information by means of computer prepared
diskette or secure e-mail takes an average of 30 minutes per response to complete. This estimate
includes the time needed for reviewing the instructions, getting the needed data, and reviewing the
completed diskette.
We estimate that the reporting of the gross earnings information by means of Form BA-11 takes
an average of 30 minutes per response to complete, including the time for reviewing the
instructions, getting the needed data, and reviewing the completed form. Federal agencies may not
conduct or sponsor, and respondents are not required to respond to, a collection of information
unless it displays a valid OMB number.
If you wish, you may send comments regarding the accuracy of our estimates or any other aspects
of Form BA-11, including suggestions for reducing completion time, to Chief of Information
Resources Management, Railroad Retirement Board, 844 N. Rush St., Chicago, Illinois 606112092. Please do
send this form to this address.
Who do you contact with questions concerning gross earnings reports?
If you have any questions about this letter, please call Tim Hogueisson at (3 12) 75 1-4789.