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 Chapter 01: Regular Earnings
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          Labor Employer Reporting Instructions (LERI)
          Part IV - Particular Types of Compensation Payments
          Chapter 01: Regular Earnings
 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 Chapter 01: Regular Earnings
							 
							
							
            pdf iconLERI-Part IV_CH 1 (20.04 KB)
      
            **Regular Earnings Definition**

Regular earnings are payments made for services rendered as an employee. This includes payments to part-time and seasonal employees, as well as regular earning paid to employees who are not working due to illness, injury, or pregnancy. Any payment made through the regular payroll system is presumed to be regular earnings. Regular earnings are creditable as follows:



National or System Unit
			Tier I, Tier II, RUIA compensation and service month credit.Local Lodge
			Tier I and Tier II compensation for payments of $25 or more per month and service month credit.

**Non-Monetary Earnings**

Earnings may be paid as a commodity, a service, or a privilege. If an employee is to be paid in any form other than money, the employee and employer must agree upon the arrangement and the value of the commodity, service, or privilege being provided. Non-monetary earnings will result in creditable compensation. Non-monetary earnings are creditable in the amount of ascertainable or agreed upon value. For example, a local lodge may pay earnings in the form of union dues.

The language in the Railroad Retirement Act (RRA) and the Railroad Retirement Tax Act (RRTA) differ with respect to non-monetary earnings. Under the RRTA, the value of non-monetary earnings is taxable whether or not there is an agreement as to the value or that the earnings will not be paid in cash.

Note: The value of the union dues is creditable compensation and therefore, taxable. The value would be the amount of the dues plus a factor to represent the employee share of the taxes which the labor organization would have to pay. See IRS Publication 15-A if an employee is receiving free union dues is lieu of wages.



**Reporting Compensation on a Paid or Earning Basis**

Regular earnings may be reported as compensation for the period the payment was earned, referred to as "earned basis," or when the payment was made, referred to as "paid basis."

*Earned Basis*: Compensation is credited with respect to the payroll period in which it was earned even though paid and reported at a later date.

*Paid Basis*: Compensation is credited with respect to the period in which compensation is paid, actually or constructively, regardless of when the services which generated the compensation were performed.

**Employee Requests Compensation to be Reported When Earned**

Employers choosing to report compensation on a paid basis are subject to the proviso that an employee, within four years after the report, may request to have the compensation reported, by way of an adjustment, for the year in which it was earned. This provision is found in the Railroad Retirement Board's regulations 20 CFR 209.15 (a). Employee requests to have compensation adjusted to an earned basis may be made to the employer directly or to the RRB who will notify the employer to file an adjustment report. Requests made under this proviso must be honored.
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 Last updated: 03/20/2019