Department of the Treasury—Internal Revenue Service OMB No. 1545-0002 Form CT-2

(Rev. January 1996) Employee Representative’s Quarterly Railroad Tax Return

1 Total work-hours for which compensation was paid during this quarter × $0.34 1

2 Taxable compensation paid during this quarter subject to Tier I tax $ × 12.4% 2

3 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% 3

4 Taxable compensation paid during this quarter subject to Tier II tax $ × 14.75% 4

5 Credit (attach explanation in duplicate) 5

6 Total taxes for quarter (add lines 1 through 4, subtract line 5). Pay to the INTERNAL REVENUE SERVICE © 6

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.

DO NOT DETACH

Signature © Date © , 19

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With This

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T Employee representative’s name, address, and social security number, and name Return for Calendar Quarter

of organization represented. (If incorrect, please make any necessary changes.) (Months and year) ORIGINAL

For Paperwork Reduction Act Notice, see the back of this page. Cat. No. 16030S
Railroad Retirement Taxes.—The Railroad Retirement Tax Act

imposes two taxes on an employee representative. One is based on

compensation and the other is based on work-hours.

General Information

Paperwork Reduction Act Notice.—We ask for the information on

this form to carry out the Internal Revenue laws of the United States.

You are required to give us the information. We need it to ensure that

you are complying with these laws and to allow us to figure and

collect the right amount of tax.

Taxes based on compensation.—These taxes are divided into Tier I

and Tier II taxes. The amount of the compensation subject to each tax

is different.

The Tier I tax rate for 1996 is 12.4%. It applies only to the first

$62,700 paid during 1996 for services performed as an employee

representative. The Tier I Medicare tax is 2.9%. It applies to all

compensation paid during 1996 for services performed as an The time needed to complete and file this form will vary depending employee representative. on individual circumstances. The estimated average time is:

Recordkeeping, 26 min.; Learning about the law or the form, 13

min.; Preparing the form, 31 min.; Copying, assembling, and

sending the form to the IRS, 17 min.

The Tier II tax rate for 1996 is 14.75%. It applies only to the first

$46,500 paid during 1996 for services performed as an employee

representative.

If you have comments concerning the accuracy of these time

estimates or suggestions for making this form simpler, we would be

happy to hear from you. You can write to the Tax Forms Committee,

Western Area Distribution Center, Rancho Cordova, CA 95743-0001.

DO NOT send this form to this office. Instead, see Where To File on

the back of the TAXPAYER’S COPY.

Tax based on work-hours.—This supplemental tax is 34 cents for each

work-hour for which compensation is paid during the quarter.

Employee representatives will be told by the Railroad Retirement

Board the tax rate for each quarter before the quarter begins.

Definitions

1. Employee Representative.—The term “employee representative” is

defined in the Railroad Retirement Tax Act (section 3231(c) of the

Internal Revenue Code). It means:

(Continued on back of DUPLICATE)

Purpose of Form.—Use this form to report railroad retirement tax

imposed on employee representatives.
Department of the Treasury—Internal Revenue Service OMB No. 1545-0002 Form CT-2

(Rev. January 1996) Employee Representative’s Quarterly Railroad Tax Return

1 Total work-hours for which compensation was paid during this quarter × $0.34 1

2 Taxable compensation paid during this quarter subject to Tier I tax $ × 12.4% 2

3 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% 3

4 Taxable compensation paid during this quarter subject to Tier II tax $ × 14.75% 4

5 Credit (attach explanation in duplicate) 5

6 Total taxes for quarter (add lines 1 through 4, subtract line 5). Pay to the INTERNAL REVENUE SERVICE © 6

DO NOT DETACH

Employee representative’s name, address, and social security number, and name Return for Calendar Quarter

of organization represented, exactly as shown on original. (Months and year as on original)

File this duplicate copy with the original return.

DUPLICATE
General Information—(Continued from back of ORIGINAL)

(a) Any officer or official representative of a railway labor

organization that is not included as an employer as defined in section

3231(a) of the Code who (1) was in the service of an employer and (2)

is authorized and designated to represent employees in accordance

with the Railway Labor Act, as amended; and

If an individual performs services as both an employee

representative and as an employee and the total pay for these

services is more than the applicable maximum, subtract the pay as an

employee from the maximum to get the amount subject to the

employee representative tax.

(b) Any individual who is regularly assigned to or regularly employed

by an employee representative as defined in (a) above in connection

with the duties of the employee representative’s office.

Compensation is considered paid when actually paid or when

constructively paid.

2. Compensation.—The term “compensation” means payment in

money, or in something that may be used instead of money, for

services rendered as an employee representative. It does not include

sickness or accident disability payments received (a) under a

workmen’s compensation law, (b) under section 2(a) of the Railroad

Unemployment Insurance Act for days of sickness due to on-the-job

injury, (c) under the Railroad Retirement Act, or (d) more than 6

months after the calendar month the employee representative last

worked for the railway labor organization.

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.

3. Work-hours.—For an explanation of work-hours, see Supplemental

Tax in the Instructions for Form CT-1.

Nor does it include payments for medical or hospital expenses

connected with such disabilities. It also does not include payments for

traveling or other necessary expenses made separately or designated

specifically as travel or business expenses when combined in a

payment for services rendered.

Who Must File.—As an employee representative, you must file a

return for the first quarter in which you are paid taxable compensation

for services you rendered 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." Attach to the final return a statement giving the

name of the person keeping your records and the address where they

will be kept.

(Continued on back of TAXPAYER’S COPY)
Department of the Treasury—Internal Revenue Service OMB No. 1545-0002 Form CT-2

(Rev. January 1996) Employee Representative’s Quarterly Railroad Tax Return

1 Total work-hours for which compensation was paid during this quarter × $0.34 1

2 Taxable compensation paid during this quarter subject to Tier I tax $ × 12.4% 2

3 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% 3

4 Taxable compensation paid during this quarter subject to Tier II tax $ × 14.75% 4

5 Credit (attach explanation in duplicate) 5

6 Total taxes for quarter (add lines 1 through 4, subtract line 5). Pay to the INTERNAL REVENUE SERVICE © 6

DETACH AND KEEP THIS COPY

Employee representative’s name, address, and social security number, and name Return for Calendar Quarter

of organization represented, exactly as shown on original. (Months and year as on original)

Before filing return, examine each copy in order to be certain that the period for which the return is filed

is shown, and that correct entries are made on lines 1 through 6, in accordance with the instructions.

TAXPAYER’S

COPY
Signature.—You or your authorized agent must sign each return.

Where To File.—This return contains three copies of Form CT-2. Send

both the ORIGINAL and DUPLICATE to the Internal Revenue Service

Center, Kansas City, MO 64999. Keep the TAXPAYER’S COPY for

your records.

When To File.—Due dates for filing the return and paying the tax each

quarter are as follows:

Quarter covered: Due by:

January, February, March May 31

April, May, June August 31

July, August, September November 30

October, November, December Last day of February

If you stop being paid taxable compensation, send a return marked

“Final Return,” as explained under Who Must File.

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 unavoidably late in filing a return or paying the taxes, send an

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

Line 5. Credit.—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.

Name, address, etc.—Type or print your name, address, and social

security number, and the name of the labor organization for which you

render services. If the IRS has preaddressed the form, check to be

sure it is correct. If incorrect, please make any necessary changes.

Records.—You must keep records pertaining to employee

representative taxes for at least 4 years after the taxes they pertain to

become due or the date the taxes were paid, whichever is later.

Privacy Act Information.—See the Instructions for Form 1040, 1040A,

or 1040EZ for the Privacy Act Notice.

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 1996 as “Jan., Feb., Mar.

1996.”

(Continued from back of DUPLICATE)

Instructions

Line 1. Multiply the work-hours for which compensation was paid by

$0.34.

Line 2. Multiply the compensation subject to Tier I tax by 12.4%. This

applies to only the first $62,700 paid during 1996 for services

performed as an employee representative.

Line 3. Multiply the compensation subject to Tier I Medicare tax by

2.9%. This applies to all compensation paid during 1996 for services

performed as an employee representative.

Line 4. Multiply the compensation subject to Tier II tax by 14.75%.

This applies to only the first $46,500 paid during 1996 for services

performed as an employee representative.

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