Form Ct-2 - Employee Representative'S Quarterly Railroad Tax Return Page 2
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Form CT-2 (Rev. 1-2012)
Page
Specific Instructions
Section references are to the Internal Revenue Code unless otherwise noted.
What’s New
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
Changes to tax rates and compensation bases. The Tier I tax rate is 10.4%, but
and Line 3 below), then for lines 1 and 3 subtract your pay as an employee from
the Tier I compensation base for 2012 has been increased to $110,100. The Tier I
the maximum to determine the amount subject to the employee representative’s
Medicare tax rate remains at 2.9% with an unlimited wage base. The Tier II tax rate
tax.
on employee representatives remains at 12.1%, but the Tier II compensation base
for 2012 has been increased to $81,900.
Line 1. Multiply the compensation subject to Tier I tax by 10.4% (.104). This
applies only to the first $110,100 paid to you during 2012 for services performed
General Instructions
as an employee representative.
Purpose of Form
Line 2. Multiply the compensation subject to Tier I Medicare tax by 2.9% (.029).
This applies to all compensation paid to you during 2012 for services performed
Use this form to report railroad retirement taxes imposed on compensation
as an employee representative.
received by employee representatives.
Line 3. Multiply the compensation subject to Tier II tax by 12.1% (.121). This
Railroad retirement taxes. The Railroad Retirement Tax Act imposes a tax on an
applies only to the first $81,900 paid to you during 2012 for services performed as
employee representative, which is based on compensation.
an employee representative.
These taxes are divided into Tier I and Tier II taxes. The amount of
Line 4. Enter any credit for an overpayment of tax, penalty, or interest erroneously
compensation subject to each tax is different.
paid for an earlier quarter. Attach two copies of a detailed statement explaining the
credit claimed.
The Tier I tax rate for 2012 is 10.4%. It applies only to the first $110,100 paid to
you during 2012 for services performed as an employee representative. The Tier I
Line 5. Pay this amount to the “United States Treasury.” Enter on your check or
Medicare tax rate is 2.9%. It applies to all compensation paid to you during 2012
money order your social security number, “Form CT-2,” and the quarter (for
for services performed as an employee representative.
example, 201201 for the first quarter of 2012). Alternatively, you may pay your tax
using the Electronic Federal Tax Payment System (EFTPS). For more information,
The Tier II tax rate for 2012 is 12.1%. It applies only to the first $81,900 paid to
visit , call EFTPS Customer Service toll free at 1-800-555-4477, or
you during 2012 for services performed as an employee representative.
get Pub. 966, The Secure Way to Pay Your Federal Taxes.
Who Must File
Signature. You or your authorized agent must sign the ORIGINAL copy of Form
CT-2.
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
Name, address, etc. Type or print your name, address, social security number,
representative. Continue filing returns for each quarter, even if you are not paid
and the name of the labor organization for which you perform services. If the IRS
taxable compensation. When your taxable compensation payments stop
has preaddressed the form, check to be sure it is correct. If incorrect, make any
completely, file a return marked “Final Return.”
necessary changes.
When To File
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
Due dates for filing Form CT-2 and paying the tax each quarter are as follows:
quarter of 2012 as “Jan., Feb., Mar. 2012.”
Quarter covered:
Due by:
Paid preparer. A paid preparer must sign Form CT-2 and provide the information
January, February, March
May 31, 2012
in the “Paid Preparer Use Only” section if the preparer was paid to prepare Form
April, May, June
August 31, 2012
CT-2 and is not an employee of the filing entity. Paid preparers must sign paper
July, August, September
November 30, 2012
returns with a manual signature. The preparer must give you the original return to
October, November, December
February 28, 2013
be filed with the IRS and a copy of the return for your records.
If any due date shown above falls on a Saturday, Sunday, or legal holiday, you
If you are a paid preparer, enter your Preparer Tax Identification Number (PTIN)
may file your return and pay the tax on the next business day.
in the space provided. Include your complete address. If you work for a firm, write
Where To File
the firm’s name and the EIN of the firm. You can apply for a PTIN online or by filing
Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application. For
Form CT-2 contains two copies. Be sure to make an additional copy of Form CT-2
more information about applying for a PTIN online, visit the IRS website at
for your records. Send both the ORIGINAL and DUPLICATE to the Department of
You cannot use your PTIN in place of the EIN of the tax
the Treasury, Internal Revenue Service Center, Cincinnati, OH 45999-0007.
preparation firm.
Penalties and Interest
Generally, you are not required to complete this section if you are filing the
return as a reporting agent and have a valid Form 8655, Reporting Agent
The law provides a penalty for late filing or late payment unless you can show
Authorization, on file with the IRS. However, a reporting agent must complete this
reasonable cause for the delay. If you are late in filing a return or paying the taxes,
section if the reporting agent offered legal advice, for example, by advising the
send an explanation with the return. Interest is charged on taxes paid late.
client on determining whether its workers are employees or independent
Records
contractors for federal tax purposes.
You must keep records relating to employee representative taxes for at least 4
Privacy Act and Paperwork Reduction Act Notice. We ask for the information
years after the taxes are due or were paid, whichever is later.
on Form CT-2 to carry out the Internal Revenue laws of the United States. We
Definitions
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
Employee representative. An employee representative is:
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
1. Any officer or official representative of a railway labor organization that is not
6109 requires you to provide your identification numbers.
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
Routine uses include giving this information to the Railroad Retirement Board for
Act and
use in administering the Railroad Retirement Act, to the Department of Justice for
civil and criminal litigation, and to cities, states, the District of Columbia, and U.S.
2. Any individual who is regularly assigned to or regularly employed by an
commonwealths and possessions for use in administering their tax laws. We may
employee representative as defined above in connection with the duties of the
also disclose this information to other countries under a tax treaty, to federal and
employee representative’s office.
state agencies to enforce federal nontax criminal laws, or to federal law
Compensation. Compensation means payment in money, or in something that
enforcement agencies and intelligence agencies to combat terrorism. If you fail to
may be used instead of money, for services performed as an employee
provide this information in a timely manner, or provide false or fraudulent
representative. It does not include payments for medical or hospital expenses
information, you may be subject to penalties.
connected with disabilities. It also does not include payments made specifically for
You are not required to provide the information requested on a form that is
traveling or other bona fide and necessary expenses that meet the rules in the
subject to the Paperwork Reduction Act unless the form displays a valid OMB
regulations under section 62. For purposes of Tier I taxes, compensation does not
control number. Books or records relating to a form or its instructions must be
include sickness or accident disability payments received (a) under a workers’
retained as long as their contents may become material in the administration of
compensation law, (b) under section 2(a) of the Railroad Unemployment Insurance
any Internal Revenue law. Generally, tax returns and return information are
Act for days of sickness due to an on-the-job injury, (c) under the Railroad
confidential, as required by section 6103.
Retirement Act, or (d) more than 6 months after the month in which the employee
representative last worked for the railway labor organization.
The time needed to complete and file Form CT-2 will vary depending on
individual circumstances. The estimated average time is: Recordkeeping, 13
Compensation is considered paid when actually paid or when constructively
min.; Learning about the law or the form, 13 min.; Preparing the form, 24 min.;
paid. Constructively paid means that the pay (a) has been credited to the
Copying, assembling, and sending the form to the IRS, 16 min.
employee representative’s account or set apart with no substantial limit or
condition on how or when the payment will be made and (b) is available to draw on
If you have comments concerning the accuracy of these time estimates or
at any time and to control.
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:M:S, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Do not send Form CT-2 to this office. Instead, see Where
To File, earlier.
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