Rail Employer Reporting Instructions

Part V – Reports of Creditable Service and Compensation

Chapter 6: Filing Instructions for Form BA-9, Report of Separation Allowance or 

Severance Pay

1

Purpose of Form BA-9

Whenever you make separation allowance or severance payments to an employee, such 

payments are to be reported to the RRB on Form BA-9, Report of Separation Allowance or 

Severance Pay. This report is needed to establish a disqualification period for unemployment and 

sickness benefits and to calculate any Separation Allowance Lump Sum benefit due at 

retirement. Information on Form BA-9 may also be used to make deemed service month 

determinations.

Separation Allowance Paid With Other Payments

If both a separation allowance and some other payment are being paid at the same time, it is 

preferable if the two payments are issued separately. This will make clear to both the employee 

and the RRB, the amount of separation allowance which is subject to Tier II tax. If a separation 

payment and another payment are combined, the Tier II tax on the pay receipt may not agree 

with the amount reported on Form BA-9 as subject to Tier II tax. Any such differences must be 

resolved. Separate payments will help to prevent unnecessary inquiries to the employer for 

clarification.

Form BA-9 Filing Instructions

Form BA-9, Report of Separation Allowance or Severance Pay, is due at the RRB no later than 

the last day of the month following the end of the quarter in which the separation or severance 

was paid. For example, reports of payments made during April through June 2015 were due at 

the RRB no later than July 31, 2015. While the filing of quarterly reports is required, you may 

file more often. It may be more convenient to file the forms on a monthly basis or each time you 

make a separation or severance payment. 

Detailed instructions for completing Form BA-9 are located on the form.

Failure to File Form BA-9 Timely

It is important that you file Form BA-9 timely because benefits under both the RUIA and RRA 

may be affected. If you fail to file Form BA-9 timely:

 no disqualification period will be established; 

 RUIA benefits may be paid improperly; and 

 the employer's RUIA contribution rate will be erroneously inflated. 

Adjustments

Adjustments to reported severance pay are made on Form BA-9 also. Instructions on the reverse 

side of the paper form explain how to notate an entry is an adjustment.
Rail Employer Reporting Instructions

Part V – Reports of Creditable Service and Compensation

Chapter 6: Filing Instructions for Form BA-9, Report of Separation Allowance or 

Severance Pay

2

Incorrect Usage of Form BA-9

Do not use Form BA-9 to:

Update an employee's 

service and compensation 

record. 

The creditable compensation that results from a separation 

allowance or severance payment must be reported as regular 

compensation on Form BA-3, or on Form BA-4, as appropriate. 

Report miscellaneous 

compensation

Separation allowance or severance pay may become miscellaneous 

compensation if the payment meets all of the conditions of 

miscellaneous pay as described in Part IV, Chapter 2. 

Report a monthly dismissal 

allowance. See the explanation of dismissal allowance in Part IV, Chapter 7.

Form BA-9 Earned vs. Paid Reporting

There are no special instructions for completing Form BA-9 to report Severance Pay/Separation 

Allowances, based on whether you report compensation on an earned or paid basis. This is 

because it is assumed, prior to completing Form BA-9; that you have already correctly calculated 

the taxed and reported the separation allowance using the method (earned/paid) you have chosen. 

You then report on Form BA-9 the amount of the separation allowance that was already subject 

to tax and the amount that was already reported as compensation for the reporting period. If the 

separation allowance was paid out over a period, it may be necessary to file more than one Form 

BA-9.