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              -  Home 
              -  Rail Employer Reporting Instructions (RERI) 
              -  Part III - Principles of Service and Compensation 
              -                   Chapter 02: Employment Relation              

## Topics

-  Part I - Prerequisite Knowledge for Rail Employer Reporting  
-  Part II - Establishment of Employee Records 
-  Part III - Principles of Service and Compensation    -  Chapter 01: Service Months 
  -  Chapter 02: Employment Relation 
  -  Chapter 03: Creditable Maximum Compensation Amounts 
  -  Chapter 04: Taxable Compensation under the Railroad Retirement Tax Act (RRTA) 
  -  Chapter 05: Taxation of Compensation under the Railroad Unemployment Insurance Act 
-  Part IV - Particular Types of Compensation Payments 
-  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 

 

RERI-Part III_CH 2
 

**Employment relation defined**

An employee generally has an employment relation beginning with the effective hire date and ending with the effective termination date. An employment relation is maintained during periods in which active service is not performed because of:
                        - furlough;
                        - authorized leave of absence; or
                        - continuous disability.

**Employment relation ends**

An employment relation ends when an employee:
                        - dies;
                        - retires or receives a company pension;
                        - is discharged;
                        - resigns; or
                        - relinquishes employment rights.

**Importance of employment relation**

An employment relation is important because service months may be credited only for months in which an employment relation is maintained. This is true for deemed service as well. That is why the RRB requests information about an employee's status on Form GL-99, Deemed Service Questionnaire.

**Common error**

Employers commonly report service months in error after an employment relation has ended if the employer is making a payment. Payments earned in a prior period may be credited when paid, but service months are always credited when the service was performed. An employment relation is an essential factor in crediting service months but is not a requirement in crediting compensation.

**Example of correctly reporting service months**

An employee retires in November. Earnings payments due are made in December and again in the following February. The payments made after November may be credited as compensation to November (or earlier months, if earned in earlier months) or to the months paid, but no service months are creditable after November. The employee is not entitled to service credit for December or February because the employment relation ended in November.

   

**‹** Chapter 01: Service Months
Up
Chapter 03: Creditable Maximum Compensation Amounts **›**

   

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								Last updated: 01/29/2019