Purpose of Form BA-15, Report of Stock Options and Other Payments

Form BA-15, Report of Stock Options and Other Payments, is used to obtain information 

regarding the total Medicare wages, non-qualified stock options (NQSOs), and other payments 

paid to employees. The payroll information collected with Form BA-15 is essential for the 

calculation of payroll taxes and benefits used by the Financial Interchange (FI). Failure to collect 

this payroll information would result in understating the payroll taxes that should have been 

collected under the Federal Insurance Contributions Act (FICA). 

Accurate compensation file tabulations are an integral part of the data needed to determine tax 

revenues and corresponding FI amounts. Without collecting information on NQSOs and other 

payments that the railroad did not report as part of the employee’s RRTA compensation, the 

transfer of funds between the Railroad Retirement Board (RRB), Social Security Administration 

(SSA) and Centers for Medicare & Medicaid Services (CMS) cannot be accurately determined. 

Types of Compensation

Medicare wages and tips consist of all earnings that would be taxable under the hospital 

insurance portion of FICA. Please note that Medicare wages should exclude pre-taxable 

deductions for cafeteria plans (also known as flexible benefit plans). See General Instructions for 

Forms W-2 and W-3 (https://www.irs.gov/pub/irs-pdf/iw2w3.pdf) for definition of Medicare wages 

and tips. 

RRTA Gross compensation consists of all earnings taxable under the hospital insurance 

portion of the Tier I tax. This includes but is not limited to: 

x Earnings above the taxable limit, 

x Sick pay, and 

x Miscellaneous compensation. 

However, RRTA gross compensation may exclude: 

x NQSOs, 

x Other payments made to railroad employees that the railroad did not report as part of the 

employee’s RRTA compensation, and 

x Pre-taxable deductions for cafeteria plans (also known as flexible benefit plans). 

Reporting Requirements 

Each employer is required by law to report the Medicare wages for each employee who has 

received either NQSOs or other payments. This information is an essential part of the data 

needed to compute the benefit and tax calculations required in the financial interchange. 

Due Dates and Frequency of Reports

The BA-15 forms are to be reported for the same periods as used in determining the employer's 

annual report of creditable service and compensation (Form BA-3). Form BA-15 for the 

preceding calendar year is due the last day of February of the following year and must be 

accompanied by Form G-440, Report Specifications Sheet. 

Employers with No Employees Receiving Either a NQSOs or Other Payments 

If you have no employees receiving either NQSOs or other payments, you must file Form G440 with the appropriate box on the Form G-440 indicating no employees to report. 

Report Media Options

Employers have the option of reporting by one of the following methods: 

x CD ROM in ASCII format, 

x Secure E-mail, or 
x File Transfer Protocol (FTP). 

Please see Part V. Chapter 1 for more information on filing options. 

Common Errors to Avoid 

Below are some helpful hints on how to avoid errors on Form BA-15: 

x Do not limit the amounts on Form BA-15 to the annual Tier I or Tier II creditable 

maximum amounts for the year. 

x Ensure that the RRTA gross compensation reported for an employee is not less than the 

Tier I amount reported for the employee for the same year as reported to the RRB on 

Form BA-3, Report of Creditable Compensation. 

x Amounts reported on Form BA-15 and creditable compensation reported on Form BA-3 

must both be reported on the same basis, either "paid" or "earned". 

x Be sure to list all subsidiary BA numbers included on Form BA-15 on Form G-440, even if 

one or more BA numbers have no employees to report. 

To Correct an Error on a Previous Report

x Enter 'R' (indicating a replacement) in column item 1 on Form BA-15. 

x Fill out all data items in the replacement record with the most accurate amounts for that 

reported year. 

x Submit Form BA-15 to the RRB. 

x Multiple years, initial and replacement data records can be included on the same BA-15 

form. 

Time Limits for Adjustments

The Railroad Retirement Act imposes a four-year statute of limitations for adjusting a report of 

creditable compensation. 

Help with Form BA-15, Report of Stock Options and Other Payments

Employers who have difficulty with any of the reporting instructions for Form BA-15, Report of 

Stock Options and Other Payments, should contact the address below for assistance. 

Bureau of the Actuary and Research 

Financial Interchange Division 

Railroad Retirement Board 

844 North Rush Street 

Chicago, Illinois 60611-1275 

Phone: (312) 469-2286 

Email: BA15@rrb.gov