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

UNITED STATES OF AMERICA

RAILROAD RETIREMENT BOARD

844 NORTH RUSH STREET

CHICAGO, ILLINOIS 60611-2092

Bureau of the Actuary

December 2010
REPORT OF GROSS EARNINGS FOR 2010

This circular letter is to inform you about the 2010 Gross Earnings report. The report is due
February 28, 2011.
Employers submitting Form BA-ll should follow the steps listed below under the section "How
to report". If you submit magnetic media, please confirm that your report is properly
formatted. The BA-ll record layout is 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.
Please note that 3Yz floppy diskettes will no longer be accepted.

Purpose of collecting gross earnings reports
The gross earnings information is essential in determining the tax amounts involved in 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 (RRB) 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-ll (dated 01-08) used to submit non-computer listings, is
available on our web site at www.rrb.gov/mep/er_forms.asp under "Labor Reporting Forms"
and "Employer Reporting Forms." However, we encourage paper filers to use the Employer
Reporting Program, which is available from the Quality Reporting Service Center. Also, all
reports of gross earnings, whether on paper, secure e-mail (Program Letter 2008-05), CD ROM,
magnetic cartridge or using File Transfer Protocol (FTP), are required to be accompanied by Form
G-440 (dated 01-08), Report Specifications Sheet.

{ ) Printed on recycled paper

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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
further information on exclusions to creditable compensation see Part IV, Chapter 12 of
the "Employer Reporting Instructions" or Part IV, 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-II 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 (dated 01-08), 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 60611-2092

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 ofJhe gross earnings information by means of computer prepared
CD ROM or secure e-mail takes an average of30 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-II takes
an average of 30 minutes per response to complete, including the time for reviewing the

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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-II, including suggestions for reducing completion time, to Chief of Information
Resources Management, Railroad Retirement Board, 844 N. Rush St., Chicago, Illinois 60611­
2092. Please do not send this form to this address.

Who do you contact with questions cortcerning gross earnings reports?
If you have any questions about this letter, please call Tim Hogueisson at (312) 751-4789.