Instructions For Form Ct-1 - 2011 (Page 6 of 8) in pdf

Accuracy of Deposits Rule. You are required to deposit

information showing the last date on which you paid

100% of your railroad retirement taxes on or before the

compensation you reported on Form CT-1.

deposit due date. However, penalties will not be applied for

The final return should be accompanied by a statement

depositing less than 100% if both of the following conditions

providing the address at which the records for your Forms

are met:

CT-1 are kept and the name of the person keeping the

1. Any deposit shortfall does not exceed the greater of

records. If the business has been transferred to another

$100 or 2% of the amount of taxes otherwise required to be

person, the statement should include the name and address

deposited, and

of the transferee and the date of the transfer. If the business

2. The deposit shortfall is paid or deposited by the

was not transferred or the transferee is not known, the

shortfall makeup date for each type of depositor as

statement should so state. The statement should be

described below.

furnished in duplicate.

•

Monthly schedule depositor. Deposit the shortfall or

Processing of your return may be delayed if you do

pay it with your return by the due date of Form CT-1. You

not provide the required amounts in the

may pay the shortfall with Form CT-1 even if the amount is

Compensation and Tax columns.

$2,500 or more.

CAUTION

•

Semiweekly schedule depositor. Deposit the shortfall

Line 1—Tier I Employer Tax

by the earlier of the first Wednesday or Friday that comes on

or after the 15th of the month following the month in which

Enter the compensation (other than tips and sick pay)

the shortfall occurred or the due date of Form CT-1. For

subject to Tier I employer tax in the Compensation column.

example, if a semiweekly schedule depositor has a deposit

Multiply by 6.2% and enter the result in the Tax column. Do

shortfall during January 2012, the shortfall makeup date is

not enter more than $106,800 per employee in the

February 15, 2012 (Wednesday).

Compensation column on lines 1 and 7 combined.

Penalties and Interest

Line 2—Tier I Employer Medicare Tax

The law provides penalties for failure to file a return, late

Enter the compensation (other than tips and sick pay)

filing of a return, late payment of taxes, failure to make

subject to Tier I employer Medicare tax in the Compensation

deposits, or late deposits unless reasonable cause is

column. Multiply by 1.45% and enter the result in the

shown. Interest is charged on taxes paid late at the rate set

Tax column.

by law. For more information, see Pub. 15 (Circular E).

Line 3—Tier II Employer Tax

If you receive a notice about penalties and interest after

you file this return, send us an explanation and we will

Enter the compensation (other than tips) subject to Tier II

determine if you meet reasonable-cause criteria. Do not

employer tax in the Compensation column. Do not enter

attach an explanation when you file your return.

more than $79,200 per employee. Multiply by 12.1% and

enter the result in the Tax column.

Use Form 843, Claim for Refund and Request for

Abatement, to request abatement of assessed penalties or

Line 4—Tier I Employee Tax

interest. Do not request abatement of assessed penalties or

interest on Form CT-1 or Form CT-1 X.

Enter the compensation, including tips reported, subject to

Tier I employee tax in the Compensation column. Multiply by

Order in which deposits are applied. Generally, tax

4.2% and enter the result in the Tax column. Do not enter

deposits are applied first to the most recent tax liability

more than $106,800 per employee in the Compensation

within the specified tax period to which the deposit relates. If

column on lines 4 and 9 combined.

you receive a failure-to-deposit penalty notice, you may

designate how your payment is to be applied in order to

Stop collecting the 4.2% Tier I employee tax when the

minimize the amount of the penalty. You must respond

employee’s wages (including sick pay) and tips reach the

within 90 days of the date of the notice. Follow the

maximum for the year ($106,800 for 2011). However, your

instructions on the notice you received. See Rev. Proc.

liability for Tier I employer tax on compensation continues

2001-58 for more information. You can find Rev. Proc.

until the compensation, not including tips, totals $106,800

2001-58 on page 579 of Internal Revenue Bulletin 2001-50

for the year.

Line 5—Tier I Employee Medicare Tax

Trust fund recovery penalty. If taxes that must be

withheld are not withheld or are not deposited or paid to the

Enter the compensation, including tips reported, subject to

United States Treasury, the trust fund recovery penalty may

Tier I employee Medicare tax in the Compensation column.

apply. The penalty is 100% of the unpaid taxes. This penalty

Multiply by 1.45% and enter the result in the Tax column.

may apply to you if these unpaid taxes cannot be

For information on reporting tips, see Tips, earlier.

immediately collected from the employer or business. The

Line 6—Tier II Employee Tax

trust fund recovery penalty may be imposed on all persons

who are determined by the IRS to be responsible for

Enter the compensation, including tips reported, subject to

collecting, accounting for, and paying over these taxes, and

Tier II employee tax in the Compensation column. Only the

who acted willfully in not doing so. For more information, see

first $79,200 of the employee’s compensation for 2011 is

Trust fund recovery penalty in section 11 of Pub. 15

subject to this tax. Multiply by 3.9% and enter the result in

(Circular E).

the Tax column. For information on reporting tips, see Tips,

earlier.

Specific Instructions

Any compensation paid during the current year that

was earned in prior years (reported to the Railroad

Final return. If you stop paying taxable compensation and

Retirement Board on Form BA-4, Report of

CAUTION

will not have to file Form CT-1 in the future, you must file a

Creditable Compensation Adjustments) is taxable at the

final return and check the Final return box at the top of Form

current year tax rates, unless special timing rules for

CT-1 under “2011.” This final return should furnish

nonqualified deferred compensation apply. See Publication

-5-

Instructions for Form CT-1 (2011)

Instructions For Form Ct-1 - 2011 Page 6

Related Articles

Related forms

Related Categories