Skip to main content    

**2023 RUIA Tax Forms Available in myRRB - Read More...**

## Search

Search

**myRRB**

  

- Our Agency   - Agency Overview
  - Office of the Chairman     - Chairman
    - Chairman Staff Directory
  - Office of the Labor Member     - Labor Member of the Board
    - Labor Member Staff Directory
    - Pre-Retirement Seminars
    - Educational Materials
    - Questions and Answers
  - Office of the Management Member     - Management Member of the Board
    - Management Member Staff Directory
  - Office of Inspector General     - Office of Inspector General
    - Audit
    - Investigations
    - Hotline to Report Fraud, Waste and Abuse
    - Library
    - Whistleblower Protection Information
  - Organization Chart
- Benefits   - Retirement     - General Information
    - Downloadable Forms
    - myRRB
  - Survivor     - General Information 
    - Downloadable Forms
    - myRRB
  - Disability     - General Information
    - Downloadable Forms
    - myRRB
  - Unemployment     - General Information
    - Downloadable Forms
    - myRRB
  - Sickness     - General Information
    - Downloadable Forms
    - myRRB
  - Income Tax     - General Information
    - Downloadable Forms
    - myRRB
  - Medicare     - General Information
    - myRRB
  - En Español
  - myRRB
- Employers   - Employer Online Services     - ERSNet Login
    - EFTPS.gov
    - Pay.gov
  - Forms     - Rail 
    - Labor
  - Reporting Instructions     - Rail 
    - Labor 
    - Creditable Sickness
  - Publications     - Employer Exchange Newsletter
    - Program and Circular Letters 
    - Additional Information
- Resources   - Railroad Jobs
  - Legal Information     - Board Orders
    - The Federal Register 
    - Legal Opinions and Board Coverage Decisions
    - Partition of Railroad Retirement Annuities
    - Administrative Staff Manuals Index
  - Pay Debts Online
  - Office of Equal Opportunity     - Overview
    - EEO Policies
    - Filing A Complaint of Discrimination
    - No FEAR Act 
    - Frequently Asked Questions
  - RRBVision Video Library
  - Appeals
  - Railroad Retirement Handbook
  - FOIA Reading Room
  - Glossary of RRB Terms
- Financial & Reporting   - Agency Reports     - Inventories
    - Plans
    - Reports
  - Financial, Actuarial & Statistical     - Budget and Financial Reports: Current and Projected
    - Performance and Accountability Reports
    - Earnings Limits, Tax Rates and COLAs
    - Annual
    - Monthly & Quarterly RRA and RUIA Data
  - National Railroad Retirement Investment Trust     - NRRIT Introduction
    - Background Information
    - Reports
    - Correspondence
- Newsroom   - News Releases
  - Media Contact
- Field Office Locator
- FAQ

  

  

  

              -  Home 
              -  Labor Employer Reporting Instructions (LERI) 
              -  Part IV - Particular Types of Compensation Payments 
              -                   Chapter 10: Miscellaneous Compensation and Sick Pay               

## Topics

-  Part I - Prerequisite Knowledge for Labor Employer Reporting 
-  Part II - Establishment of Employee Records 
-  Part III - Principles of Service and Compensation 
-  Part IV - Particular Types of Compensation Payments    -  Chapter 01: Regular Earnings 
  -  Chapter 02: RUIA Compensation and Multiple Employers  
  -  Chapter 03: Delegate Service and Other Exclusions to Creditable Compensation  
  -  Chapter 04: Selected Fringe Benefits  
  -  Chapter 05: Vacation Pay 
  -  Chapter 06: Back Pay 
  -  Chapter 07: Pay for Time Lost  
  -  Chapter 08: Separation/Severance Payments and Dismissal Allowances  
  -  Chapter 09: Guarantee Payments  
  -  Chapter 10: Miscellaneous Compensation and Sick Pay  
  -  Chapter 11: Contract Services 
-  Part V - Reports of Creditable Service and Compensation 
-  Part VI - Reports Related to Service and Compensation 
-  Part VII - Additional Communications about Service and Compensation Reports  
-  Part VIII - Employer Reporting System (ERS) Internet User Instructions 
-  Appendices 

 

LERI-Part IV_CH 10
 

**Definition of Miscellaneous Compensation**

Miscellaneous compensation is any payment which is subject to Tier I taxes and is creditable as Tier I compensation, but cannot be credited as regular compensation. Miscellaneous compensation, as referred to in these instructions, must meet the following conditions:
                        - The payment is subject to railroad retirement tax;  	 
                        - The payment is remuneration for services rendered in an earlier year;  	 
                        - The payment cannot be credited to the earlier year because the employee already has maximum Tier I compensation credit in that year; and  	 
                        - The payment cannot be credited to the year when the payment is made because no service was performed in the year of payment and the employer reports compensation generally on an earned basis. See Chapter 1 of this Part, for an explanation of earned basis.

**Example of Miscellaneous Compensation**

An employee resigns on 12/31/03 and retires on 01/01/04. He earned and received payments totaling $83,000 in 2003, and received a payment of $6,000 in March 2004 for his last pay period in 2003, for vacation pay and other benefits earned but not paid in 2003. Because the employer generally reports on an earned basis, the employer filed an adjustment increasing 2003 compensation by an additional $4,000 bringing the total compensation for 2003 to the maximum of $87,000. The remaining $2,000 paid in 2004 is reported as miscellaneous compensation for 2004.

**Taxable and Creditable Miscellaneous Compensation**

In the example, you will note that the entire $6,000 paid in 2004 is subject to Tier I, Tier II, and Medicare taxes at the 2004 tax rate. While the taxable and creditable compensation are not always equal for each year, particularly for employers who report compensation on an earned basis, the amounts will usually be equal in the aggregate for all years. In the previous example, the creditable Tier I compensation (after the adjustment) for 2003 is $87,000 and $2,000 for 2004. The total creditable compensation for the two years is $89,000. The taxable compensation for 2003 is $83,000; and $6,000 for 2004 for a total of $89,000.

**Definition of Sick Pay Paid by the Labor Organization**

Sick pay is compensation paid under a plan or agreement available on the same basis to employees in a like class and payable for days not worked on account of injury, illness, sickness, disease, pregnancy, or childbirth. If an employee receives his or her regular earnings, wages, or salary while off sick, this is not sick pay but regular earnings.

If your organization pays sick pay to your employees, request a copy of The Reporting Instructions for Creditable Sickness Payments from the RRB's Quality reporting Service Center.

**Report Miscellaneous Compensation and Sick Pay on Form BA-3**

Because sick pay and miscellaneous pay are both creditable only as Tier I compensation, they are reported separately from regular earnings to help ensure the integrity of our records.

Employers should use Form BA-3, Annual Report of Creditable Compensation, to report this type of compensation. See Part V, Chapter 3 for information on how to complete Form BA-3.

   

**‹** Chapter 09: Guarantee Payments 
Up
Chapter 11: Contract Services  **›**

   

Acrobat ReaderAdobe's Access Website

**Railroad Jobs**

**Fraud Hotline**

**Field Office Locator**

 

(877) 772-5772
(312) 751-4701 
(312) 751-4300

 
Privacy PolicyPolicies & LinksSite MapContact UsRRB CareersWebsite Feedback

 
PlainLanguage.govData.govBenefits.govUSA.govRRB @ Data.govVote.gov

 
Freedom of Information ActNo FEAR Act DataOffice of Special CounselPlain Writing @ RRBOpen Gov @ RRBOffice of Inspector General

								Last updated: 06/16/2017