Form CT-2

(Rev. October 2011)

Department of the Treasury 

Internal Revenue Service 

Employee Representative's Quarterly Railroad Tax Return

▶ Complete both copies of Form CT-2.

OMB No. 1545-0002

1 Taxable compensation paid during this quarter subject to Tier I tax . . $ × 10.4% (.104) 1 

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% (.029) 2 

3 Taxable compensation paid during this quarter subject to Tier II tax . . $ × 12.1% (.121) 3 

4 Credit (attach explanation in duplicate) . . . . . . . . . . . . . . . . . . . . . . . 4 

5 Total taxes for quarter (add lines 1 through 3, subtract line 4). See instructions for payment details . . . . . ▶ 5 

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is 

true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 

Signature ▶ Date ▶

Be Sure To 

Enclose 

Your 

Check or 

Money 

Order Employee representative’s name, address, and social security number, and name 

of organization represented. If incorrect, make any necessary changes. 

Return for Calendar Quarter 

(Months and year) 

T 

FF 

FP 

I 

T 

ORIGINAL 

Paid 

Preparer 

Use Only

Print/Type preparer’s name Preparer’s signature Date Check if 

self-employed 

PTIN

Firm’s name ▶

Firm’s address ▶

Firm's EIN ▶

Phone no. 

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 16030S Form CT-2 (Rev. 10-2011) 

Do not cut or separate the forms on this page. 

Form CT-2

(Rev. October 2011)

Department of the Treasury 

Internal Revenue Service 

Employee Representative's Quarterly Railroad Tax Return OMB No. 1545-0002

1 Taxable compensation paid during this quarter subject to Tier I tax . . $ × 10.4% (.104) 1 

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% (.029) 2 

3 Taxable compensation paid during this quarter subject to Tier II tax . . $ × 12.1% (.121) 3 

4 Credit (attach explanation in duplicate) . . . . . . . . . . . . . . . . . . . . . . . 4 

5 Total taxes for quarter (add lines 1 through 3, subtract line 4). See instructions for payment details . . . . . ▶ 5 

File this DUPLICATE copy with the ORIGINAL return. 

Employee representative’s name, address, and social security number, and name of 

organization represented exactly as shown on ORIGINAL, including any corrections. 

Return for Calendar Quarter 

(Months and year as on ORIGINAL) DUPLICATE

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 16030S Form CT-2 (Rev. 10-2011) 
Form CT-2 (Rev. 10-2011) Page 2 

Section references are to the Internal Revenue Code unless otherwise noted. 

What’s New 

Changes to tax rates and compensation bases. The Tier I tax rate is 10.4% and 

the Tier I compensation base remains at $106,800. The Tier I Medicare tax rate 

remains at 2.9% with an unlimited wage base. The Tier II tax rate on employee 

representatives remains at 12.1% and the Tier II compensation base remains at 

$79,200. 

General Instructions 

Purpose of Form 

Use this form to report railroad retirement taxes imposed on compensation 

received by employee representatives. 

Railroad retirement taxes. The Railroad Retirement Tax Act imposes a tax on an 

employee representative, which is based on compensation. 

These taxes are divided into Tier I and Tier II taxes. The amount of 

compensation subject to each tax is different. 

The Tier I tax rate for 2011 is 10.4%. It applies only to the first $106,800 paid to 

you during 2011 for services performed as an employee representative. The Tier I 

Medicare tax rate is 2.9%. It applies to all compensation paid to you during 2011 

for services performed as an employee representative. 

The Tier II tax rate for 2011 is 12.1%. It applies only to the first $79,200 paid to 

you during 2011 for services performed as an employee representative. 

Who Must File 

As an employee representative, you must file Form CT-2 for the first quarter in 

which you are paid taxable compensation for services you performed as a 

representative. Continue filing returns for each quarter, even if you are not paid 

taxable compensation. When your taxable compensation payments stop 

completely, file a return marked “Final Return.” 

When To File 

Due dates for filing Form CT-2 and paying the tax each quarter are as follows: 

Quarter covered: Due by: 

January, February, March May 31, 2011 

April, May, June August 31, 2011 

July, August, September November 30, 2011 

October, November, December February 29, 2012 

If any due date shown above falls on a Saturday, Sunday, or legal holiday, you 

may file your return and pay the tax on the next business day. 

Where To File 

Form CT-2 contains two copies. Be sure to make an additional copy of Form CT-2 

for your records. Send both the ORIGINAL and DUPLICATE to the Department of 

the Treasury, Internal Revenue Service Center, Cincinnati, OH 45999-0007. 

Penalties and Interest 

The law provides a penalty for late filing or late payment unless you can show 

reasonable cause for the delay. If you are late in filing a return or paying the taxes, 

send an explanation with the return. Interest is charged on taxes paid late. 

Records 

You must keep records relating to employee representative taxes for at least 4 

years after the taxes are due or were paid, whichever is later. 

Definitions 

Employee representative. An employee representative is: 

1. Any officer or official representative of a railway labor organization that is not 

an employer under section 3231(a) who (a) was in the service of an employer and 

(b) is authorized and designated to represent employees under the Railway Labor 

Act and 

2. Any individual who is regularly assigned to or regularly employed by an 

employee representative as defined above in connection with the duties of the 

employee representative’s office. 

Compensation. Compensation means payment in money, or in something that 

may be used instead of money, for services performed as an employee 

representative. It does not include payments for medical or hospital expenses 

connected with disabilities. It also does not include payments made specifically 

for traveling or other bona fide and necessary expenses that meet the rules in the 

regulations under section 62. For purposes of Tier I taxes, compensation does not 

include sickness or accident disability payments received (a) under a workers’ 

compensation law, (b) under section 2(a) of the Railroad Unemployment Insurance 

Act for days of sickness due to an on-the-job injury, (c) under the Railroad 

Retirement Act, or (d) more than 6 months after the month in which the employee 

representative last worked for the railway labor organization. 

Compensation is considered paid when actually paid or when constructively 

paid. Constructively paid means that the pay (a) has been credited to the 

employee representative’s account or set apart with no limit or condition on how 

or when the payment will be made and (b) is available to draw on at any time and 

to control. 

Specific Instructions 

If you perform services as both an employee representative and an employee and 

your total pay for these services is more than the applicable maximum (see Line 1

and Line 3 below), then for lines 1 and 3 subtract your pay as an employee from 

the maximum to determine the amount subject to the employee representative’s 

tax. 

Line 1. Multiply the compensation subject to Tier I tax by 10.4% (.104). This 

applies only to the first $106,800 paid to you during 2011 for services performed 

as an employee representative. 

Line 2. Multiply the compensation subject to Tier I Medicare tax by 2.9% (.029). 

This applies to all compensation paid to you during 2011 for services performed 

as an employee representative. 

Line 3. Multiply the compensation subject to Tier II tax by 12.1% (.121). This 

applies only to the first $79,200 paid to you during 2011 for services performed as 

an employee representative. 

Line 4. Enter any credit for an overpayment of tax, penalty, or interest erroneously 

paid for an earlier quarter. Attach two copies of a detailed statement explaining the 

credit claimed. 

Line 5. Pay this amount to the “United States Treasury.” Enter on your check or 

money order your social security number, “Form CT-2,” and the quarter (for 

example, 201101 for the first quarter of 2011). Alternatively, you may pay your tax 

using the Electronic Federal Tax Payment System (EFTPS). For more information, 

visit www.eftps.gov, call EFTPS Customer Service toll free at 1-800-555-4477, or 

get Pub. 966, The Secure Way to Pay Your Federal Taxes. 

Signature. You or your authorized agent must sign the ORIGINAL copy of Form 

CT-2. 

Name, address, etc. Type or print your name, address, social security number, 

and the name of the labor organization for which you perform services. If the IRS 

has preaddressed the form, check to be sure it is correct. If incorrect, make any 

necessary changes. 

Return for calendar quarter. The IRS usually fills in this space. If it is blank, enter 

the months of the quarter and the year of the return. For example, show the first 

quarter of 2011 as “Jan., Feb., Mar. 2011.” 

Paid preparer. A paid preparer must sign Form CT-2 and provide the information 

in the “Paid Preparer Use Only” section if the preparer was paid to prepare Form 

CT-2 and is not an employee of the filing entity. Paid preparers must sign paper 

returns with a manual signature. The preparer must give you the original return to 

be filed with the IRS and a copy of the return for your records. 

If you are a paid preparer, enter your Preparer Tax Identification Number (PTIN) 

in the space provided. Include your complete address. If you work for a firm, write 

the firm’s name and the EIN of the firm. You can apply for a PTIN online or by filing 

Form W-12, IRS Paid Preparer Tax Identification Number (PTIN) Application. For 

more information about applying for a PTIN online, visit the IRS website at 

www.irs.gov/ptin. You cannot use your PTIN in place of the EIN of the tax 

preparation firm. 

Generally, you are not required to complete this section if you are filing the 

return as a reporting agent and have a valid Form 8655, Reporting Agent 

Authorization, on file with the IRS. However, a reporting agent must complete this 

section if the reporting agent offered legal advice, for example, by advising the 

client on determining whether its workers are employees or independent 

contractors for federal tax purposes.

Privacy Act and Paperwork Reduction Act Notice. We ask for the information 

on Form CT-2 to carry out the Internal Revenue laws of the United States. We 

need it to figure and collect the right amount of tax. Section 3211 and section 

6011 and its regulations require employee representatives to report and pay over 

to the IRS railroad retirement taxes (Tier I and Tier II) and Tier I Medicare taxes. 

Form CT-2 is used to determine the amount of such taxes that you owe. Section 

6109 requires you to provide your identification numbers. 

Routine uses include giving this information to the Railroad Retirement Board for 

use in administering the Railroad Retirement Act, to the Department of Justice for 

civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. 

commonwealths and possessions for use in administering their tax laws. We may 

also disclose this information to other countries under a tax treaty, to federal and 

state agencies to enforce federal nontax criminal laws, or to federal law 

enforcement agencies and intelligence agencies to combat terrorism. If you fail to 

provide this information in a timely manner, or provide false or fraudulent 

information, you may be subject to penalties.

You are not required to provide the information requested on a form that is 

subject to the Paperwork Reduction Act unless the form displays a valid OMB 

control number. Books or records relating to a form or its instructions must be 

retained as long as their contents may become material in the administration of 

any Internal Revenue law. Generally, tax returns and return information are 

confidential, as required by section 6103. 

The time needed to complete and file Form CT-2 will vary depending on 

individual circumstances. The estimated average time is: Recordkeeping, 13 

min.; Learning about the law or the form, 13 min.; Preparing the form, 24 min.; 

Copying, assembling, and sending the form to the IRS, 16 min. 

If you have comments concerning the accuracy of these time estimates or 

suggestions for making Form CT-2 simpler, we would be happy to hear from you. 

You can write to the Internal Revenue Service, Tax Products Coordinating 

Committee, SE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW, IR-6526, 

Washington, DC 20224. Do not send Form CT-2 to this office. Instead, see Where 

To File, earlier.