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Department of the Treasury
Internal Revenue Service
Instructions for Form CT-1
Employer’s Annual Railroad Retirement Tax Return
Section references are to the Internal Revenue Code unless
tax deposit rules, or obtaining an employer identification
Photographs of Missing Children
Changes to tax rates and compensation bases. For
The Internal Revenue Service is a proud partner with the
2007 tax rates and compensation bases, see Employer and
National Center for Missing and Exploited Children.
Employee Taxes — Tax Rates and Compensation Bases on
Photographs of missing children selected by the Center may
appear in instructions on pages that would otherwise be
blank. You can help bring these children home by looking at
Disregarded entities and qualified subchapter S
the photographs and calling 1-800-THE-LOST
subsidiaries. The IRS has published final regulations (T.D.
(1-800-843-5678) if you recognize a child.
9356) under which QSubs and eligible single-owner
disregarded entities are treated as separate entities for
employment tax and reporting purposes. For more
information, see Disregarded entities and qualified
subchapter S subsidiaries under Who Must File.
Purpose of Form
RRBLINK discontinued. December 31, 2007, is the last
Use Form CT-1 to report taxes imposed by the Railroad
day to make a payment using RRBLINK. Beginning January
Retirement Tax Act (RRTA). Use Form 941, Employer’s
1, 2008, make all of your electronic payments using the
QUARTERLY Federal Tax Return, or, if applicable, Form
Electronic Federal Tax Payment System (EFTPS). For more
944, Employer’s ANNUAL Federal Tax Return, to report
information on EFTPS, see Electronic payment below.
federal income taxes withheld from your employees’ wages.
Who Must File
File Form CT-1 if you paid one or more employees
Pub. 15 (Circular E), Employer’s Tax Guide, contains
compensation subject to tax under RRTA.
information for withholding, depositing, reporting, and paying
A payer of sick pay (including a third party) must file Form
CT-1 if the sick pay is subject to Tier I railroad retirement
Pub. 15-A, Employer’s Supplemental Tax Guide, contains
and Medicare taxes. Include sick pay payments on lines 7
specialized and detailed employment tax information
through 10 of Form CT-1. Follow the reporting procedures
supplementing the basic information provided in
for sick pay reporting in section 6 of Pub. 15-A, Employer’s
Pub. 15 (Circular E).
Supplemental Tax Guide.
Pub. 15-B, Employer’s Tax Guide to Fringe Benefits,
Disregarded entities and qualified subchapter S
contains information about the employment tax treatment of
subsidiaries. Under Notice 99-6, Form CT-1 taxes for
various types of noncash compensation.
employees of a qualified subchapter S subsidiary (QSub) or
Pub. 915, Social Security and Equivalent Railroad
an entity disregarded as an entity separate from its owner
Retirement Benefits, contains the federal income tax rules
under Regulations section 301.7701-2(c)(2) may be
for social security benefits and equivalent Tier I railroad
reported and paid either:
By its owner (as if the employees of the disregarded entity
The Railroad Retirement Board (RRB) website at
are employed directly by the owner) using the owner’s name
contains additional employer reporting
and taxpayer identification number (TIN), or
information and instructions.
By each entity recognized as a separate entity under state
You can order forms and publications by calling
law using the entity’s own name and TIN.
1-800-829-3676 or visiting the IRS website at
If the second method is chosen, the owner retains
Electronic payment. Now, more than ever before,
responsibility for the employment tax obligations of the
businesses can enjoy the benefits of paying their federal
disregarded entity on wages paid prior to January 1, 2009.
taxes and railroad retirement payments electronically.
You can find Notice 99-6 on page 12 of Internal Revenue
Whether you rely on a tax professional or handle your own
Bulletin 1999-3 at
taxes, the IRS offers you convenient programs to make it
The IRS has published final regulations (T.D. 9356)
easier. Spend less time on taxes and more time running
under which QSubs and eligible single-owner disregarded
your business. Use Electronic Federal Tax Payment System
entities are treated as separate entities for employment tax
(EFTPS) to your benefit. To learn more about EFTPS, visit
and reporting purposes. Under T.D. 9356, disregarded
or call EFTPS Customer Service at
entities, and the owners of such entities may continue to use
the first method permitted for wages paid prior to January 1,
Where can you get telephone help? You can call the IRS
2009. A taxpayer may switch to the second method with
toll free at 1-800-829-4933 on Monday through Friday from
respect to wages paid on or after August 16, 2007, and
7 a.m. to 10 p.m. local time (Alaska and Hawaii follow
before January 1, 2009, without seeking permission of the
Pacific time) to order tax deposit coupons (Form 8109) and
Commissioner. Taxpayers who switch from the first method
for answers to your questions about completing Form CT-1,
to the second method with respect to wages paid prior to
Cat. No. 16005H