Form CT-2 Employee Representative's Quarterly Railroad Tax Return

CT-2

Form
(Rev. January 2009)
Department of the Treasury
Internal Revenue Service

Employee Representative’s Quarterly Railroad Tax Return

OMB No. 1545-0002

 Complete both copies of Form CT-2.
× 12.4% (.124)

1

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $

×

2.9% (.029)

2

3 Taxable compensation paid during this quarter subject to Tier II tax

× 12.1% (.121)

3

1 Taxable compensation paid during this quarter subject to Tier I tax

$

$

4

4 Credit (attach explanation in duplicate)
5 Total taxes for quarter (add lines 1 through 3, subtract line 4). See instructions for payment details



5

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief,
it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Signature



Date



T
Be Sure To
Enclose
Your
Check or
Money
Employee representative’s name, address, and social security number, and name
Order
of organization represented. If incorrect, make any necessary changes.

Paid
Preparer’s
Use Only



Date

Preparer’s
signature
Firm’s name (or
yours if self-employed),
address, and ZIP code



FF
FP
I
Return for Calendar Quarter
(Months and year)
Check
if selfemployed

T
ORIGINAL
Preparer’s SSN or PTIN

EIN
Phone no. (

For Privacy Act and Paperwork Reduction Act Notice, see page 2.

Cat. No. 16030S

Form

)

CT-2

(Rev. 1-2009)

Do not cut or separate the forms on this page.

CT-2

Form
(Rev. January 2009)
Department of the Treasury
Internal Revenue Service

Employee Representative’s Quarterly Railroad Tax Return

OMB No. 1545-0002

× 12.4% (.124)

1

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $

×

2.9% (.029)

2

3 Taxable compensation paid during this quarter subject to Tier II tax

× 12.1% (.121)

3

1 Taxable compensation paid during this quarter subject to Tier I tax

$

$

4

4 Credit (attach explanation in duplicate)
5 Total taxes for quarter (add lines 1 through 3, subtract line 4). See instructions for payment details



5

File this DUPLICATE copy with the ORIGINAL return.

Employee representative’s name, address, and social security number, and name of
organization represented exactly as shown on ORIGINAL, including any corrections.
For Privacy Act and Paperwork Reduction Act Notice, see page 2.

Return for Calendar Quarter
(Months and year as on ORIGINAL)
Cat. No. 16030S

DUPLICATE
Form

CT-2

(Rev. 1-2009)

Page

Form CT-2 (Rev. 1-2009)
Section references are to the Internal Revenue Code unless otherwise noted.

What’s New
Changes to tax rates and payment bases. The Tier I tax rate remains
unchanged at 12.4% but the payment base for 2009 increased to $106,800. The
Tier I Medicare tax rate remains unchanged at 2.9% with an unlimited wage
base. The Tier II tax rate on employee representatives remains unchanged at
12.1% but the Tier II payment base for 2009 increased to $79,200.

General Instructions
Purpose of Form
Use this form to report railroad retirement taxes imposed on compensation
received by employee representatives.
Railroad retirement taxes. The Railroad Retirement Tax Act imposes a tax on
an employee representative, which is based on compensation.
These taxes are divided into Tier I and Tier II taxes. The amount of
compensation subject to each tax is different.
The Tier I tax rate for 2009 is 12.4%. It applies only to the first $106,800 paid
to you during 2009 for services performed as an employee representative. The
Tier I Medicare tax rate is 2.9%. It applies to all compensation paid to you
during 2009 for services performed as an employee representative.
The Tier II tax rate for 2009 is 12.1%. It applies only to the first $79,200 paid
to you during 2009 for services performed as an employee representative.

Who Must File
As an employee representative, you must file Form CT-2 for the first quarter in
which you are paid taxable compensation for services you performed as a
representative. Continue filing returns for each quarter, even if you are not paid
taxable compensation. When your taxable compensation payments stop
completely, file a return marked “Final Return.”

When To File
Due dates for filing Form CT-2 and paying the tax each quarter are as follows:
Quarter covered:
Due by:
January, February, March
May 31, 2009
April, May, June
August 31, 2009
July, August, September
November 30, 2009
October, November, December
February 28, 2010
If any due date shown above falls on a Saturday, Sunday, or legal holiday, you
may file your return and pay the tax on the next business day.

Where To File
Form CT-2 contains two copies. Be sure to make an additional copy of Form
CT-2 for your records. Send both the ORIGINAL and DUPLICATE to the
Department of the Treasury, Internal Revenue Service Center, Cincinnati, OH
45999-0007.

Penalties and Interest
The law provides a penalty for late filing or late payment unless you can show
reasonable cause for the delay. If you are late in filing a return or paying the
taxes, send an explanation with the return. Interest is charged on taxes paid late.

Records
You must keep records relating to employee representative taxes for at least 4
years after the taxes are due or were paid, whichever is later.

Definitions
Employee representative. An employee representative is:
1. Any officer or official representative of a railway labor organization that is
not an employer under section 3231(a) who (a) was in the service of an employer
and (b) is authorized and designated to represent employees under the Railway
Labor Act and
2. Any individual who is regularly assigned to or regularly employed by an
employee representative as defined above in connection with the duties of the
employee representative’s office.
Compensation. Compensation means payment in money, or in something that
may be used instead of money, for services performed as an employee
representative. It does not include payments for medical or hospital expenses
connected with disabilities. It also does not include payments made specifically
for traveling or other bona fide and necessary expenses that meet the rules in
the regulations under section 62. For purposes of Tier I taxes, compensation
does not include sickness or accident disability payments received (a) under a
workers’ compensation law, (b) under section 2(a) of the Railroad Unemployment
Insurance Act for days of sickness due to an on-the-job injury, (c) under the
Railroad Retirement Act, or (d) more than 6 months after the month in which the
employee representative last worked for the railway labor organization.
Compensation is considered paid when actually paid or when constructively
paid. Constructively paid means that the pay (a) has been credited to the
employee representative’s account or set apart with no limit or condition on how
or when the payment will be made and (b) is available to draw on at any time
and to control.

2

Specific Instructions
If you perform services as both an employee representative and an employee
and your total pay for these services is more than the applicable maximum (see
Line 1 and Line 3 below), then for lines 1 and 3 subtract your pay as an
employee from the maximum to determine the amount subject to the employee
representative’s tax.
Line 1. Multiply the compensation subject to Tier I tax by 12.4% (.124). This
applies only to the first $106,800 paid during 2009 for services you performed as
an employee representative.
Line 2. Multiply the compensation subject to Tier I Medicare tax by 2.9% (.029).
This applies to all compensation paid to you during 2009 for services performed
as an employee representative.
Line 3. Multiply the compensation subject to Tier II tax by 12.1% (.121). This
applies only to the first $79,200 paid to you during 2009 for services performed
as an employee representative.
Line 4. Enter any credit for an overpayment of tax, penalty, or interest
erroneously paid for an earlier quarter. Attach two copies of a detailed statement
explaining the credit claimed.
Line 5. Pay this amount to the “United States Treasury.” Enter on your check or
money order your social security number, “Form CT-2,” and the quarter (for
example, 200903 for the first quarter of 2009). Alternatively, you may pay your
tax using the Electronic Federal Tax Payment System (EFTPS). For more
information, visit www.eftps.gov, call EFTPS Customer Service toll free at
1-800-555-4477, or get Pub. 966, The Secure Way to Pay Your Federal Taxes.
Signature. You or your authorized agent must sign the ORIGINAL copy of Form
CT-2.
Paid preparer. A paid preparer must sign Form CT-2 and provide the
information in the “Paid Preparer’s Use Only” section if the preparer was paid to
prepare Form CT-2. Paid preparers must sign paper returns with a manual
signature. The preparer must give you a copy of the return in addition to the
copy to be filed with the IRS.
If you are a paid preparer, write your SSN or your Preparer Tax Identification
Number (PTIN) in the space provided. Include your complete address. If you
work for a firm, write the firm’s name and the EIN of the firm. You can apply for
a PTIN using Form W-7P, Application for Preparer Tax Identification Number.
You cannot use your PTIN in place of the EIN of the tax preparation firm.
Name, address, etc. Type or print your name, address, social security number,
and the name of the labor organization for which you perform services. If the IRS
has preaddressed the form, check to be sure it is correct. If incorrect, make any
necessary changes.
Return for calendar quarter. The IRS usually fills in this space. If it is blank,
enter the months of the quarter and the year of the return. For example, show
the first quarter of 2009 as “Jan., Feb., Mar. 2009.”
Privacy Act and Paperwork Reduction Act Notice. We ask for the information
on Form CT-2 to carry out the Internal Revenue laws of the United States. We
need it to figure and collect the right amount of tax. Section 3211 and section
6011 and its regulations require employee representatives to report and pay over
to the IRS railroad retirement taxes (Tier I and Tier II) and Tier I Medicare taxes.
Form CT-2 is used to determine the amount of such taxes that you owe. Section
6109 requires filers and paid preparers to provide their identification numbers.
Routine uses include giving this information to the Railroad Retirement Board
for use in administering the Railroad Retirement Act, to the Department of
Justice for civil and criminal litigation, and to cities, states, and the District of
Columbia for use in administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal and state agencies to
enforce federal nontax criminal laws, or to federal law enforcement agencies and
intelligence agencies to combat terrorism. If you fail to provide this information in
a timely manner, you may be subject to penalties and interest.
You are not required to provide the information requested on a form that is
subject to the Paperwork Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its instructions must be
retained as long as their contents may become material in the administration of
any Internal Revenue law. Generally, tax returns and return information are
confidential, as required by section 6103.
The time needed to complete and file Form CT-2 will vary depending on
individual circumstances. The estimated average time is: Recordkeeping, 13
min.; Learning about the law or the form, 13 min.; Preparing the form, 24
min.; Copying, assembling, and sending the form to the IRS, 16 min.
If you have comments concerning the accuracy of these time estimates or
suggestions for making Form CT-2 simpler, we would be happy to hear from
you. You can write to the Internal Revenue Service, Tax Products Coordinating
Committee, SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send Form CT-2 to this office. Instead, see
Where To File above.