Form CT-2

(Rev. January 2020)

Department of the Treasury 

Internal Revenue Service 

Employee Representative’s Quarterly Railroad Tax Return

▶ Go to www.irs.gov/CT2 for the latest information.

▶ Complete both copies of Form CT-2. 

OMB No. 1545-0002

1 Taxable compensation paid during this quarter subject to Tier 1 tax $ × 12.4% (0.124) 1 

2 Taxable compensation paid during this quarter subject to Tier 1 

Medicare tax . . . . . . . . . . . . . . . . . $ × 2.9% (0.029) 2 

3 Taxable compensation paid during this quarter subject to Tier 1 

Additional Medicare Tax . . . . . . . . . . . . . . $ × 0.9% (0.009) 3 

4 Taxable compensation paid during this quarter subject to Tier 2 tax . $ × 13.1% (0.131) 4 

5 Credit (attach explanation in duplicate) . . . . . . . . . . . . . . . . . . . . . . . 5

6 Total taxes for quarter (add lines 1 through 4; subtract line 5). See instructions for payment details . . . . ▶ 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. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. 

Signature ▶ Date ▶

Pay by 

EFTPS or 

Enclose 

Your 

Check or 

Money 

Order 

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

of organization represented. 

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 EIN ▶

Firm’s address ▶ Phone no. 

For Privacy Act and Paperwork Reduction Act Notice, see page 3. Cat. No. 16030S Form CT-2 (Rev. 1-2020) 

Don’t cut or separate the forms on this page. 

Form CT-2

(Rev. January 2020)

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 1 tax $ × 12.4% (0.124) 1 

2 Taxable compensation paid during this quarter subject to Tier 1 

Medicare tax . . . . . . . . . . . . . . . . . $ × 2.9% (0.029) 2 

3 Taxable compensation paid during this quarter subject to Tier 1 

Additional Medicare Tax . . . . . . . . . . . . . . $ × 0.9% (0.009) 3 

4 Taxable compensation paid during this quarter subject to Tier 2 tax . $ × 13.1% (0.131) 4 

5 Credit (attach explanation in duplicate) . . . . . . . . . . . . . . . . . . . . . . . 5 

6 Total taxes for quarter (add lines 1 through 4; subtract line 5). See instructions for payment details . . . . ▶ 6 

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 above.

Return for Calendar Quarter 

(Months and year) DUPLICATE

For Privacy Act and Paperwork Reduction Act Notice, see page 3. Cat. No. 16030S Form CT-2 (Rev. 1-2020) 
Form CT-2 (Rev. 1-2020) Page 2 

Section references are to the Internal Revenue Code unless 

otherwise noted. 

Future Developments

For the latest information about developments related to Form 

CT-2 and its instructions, such as legislation enacted after they 

were published, go to www.irs.gov/CT2.

What’s New 

Tax rates and compensation bases for 2020. The Tier 1 tax 

rate is 12.4%. The Tier 1 compensation base is $137,700. The 

Tier 1 Medicare tax rate is 2.9%. There is no compensation 

base limit for Tier 1 Medicare tax. The Tier 2 tax rate on 

employee representatives is 13.1%. The Tier 2 compensation 

base is $102,300.

Reminders

Tier 1 Additional Medicare Tax. In addition to the Tier 1 

Medicare tax of 2.9%, employee representatives are subject to 

0.9% Additional Medicare Tax on compensation in excess of 

$200,000, beginning in the pay period in which your 

compensation for the calendar year exceeds $200,000. If you 

pay any Additional Medicare Tax during the year, you must 

complete and file Form 8959, Additional Medicare Tax, with 

your federal income tax return. See the Instructions for Form 

8959. For more information on Additional Medicare Tax, go to 

www.irs.gov/ADMT.

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 taxes on an employee representative, which are based 

on compensation. 

These taxes are comprised of Tier 1 and Tier 2 taxes. The 

amount of compensation subject to each tax is different. 

The Tier 1 tax rate is 12.4%. It applies only to the first 

$137,700 paid to you during 2020 for services performed as an 

employee representative. The Tier 1 Medicare tax rate is 2.9%. 

It applies to all compensation paid to you during 2020 for 

services performed as an employee representative. The Tier 1 

Additional Medicare Tax is 0.9%. It applies to compensation 

paid to you during 2020 that exceeds $200,000 for services 

performed as an employee representative.

The Tier 2 tax rate on employee representatives is 13.1%. It 

applies only to the first $102,300 paid to you during 2020 for 

services performed as an employee representative.

Who Must File 

You must file Form CT-2 for the first quarter in which you’re 

paid taxable compensation for services you performed as an 

employee representative. Continue filing returns for each 

quarter, even if you’re not paid taxable compensation. When 

your taxable compensation payments stop completely, you 

must file a final return. Write “Final Return” at the top of Form 

CT-2 and on the duplicate copy.

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, 2020 

April, May, June August 31, 2020 

July, August, September November 30, 2020 

October, November, December February 28, 2021 

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. The term “legal holiday” means any legal 

holiday in the District of Columbia. If we receive Form CT-2 after 

the due date, we will treat Form CT-2 as filed on time if the 

envelope containing Form CT-2 is properly addressed, contains 

sufficient postage, and is postmarked by the U.S. Postal Service 

on or before the due date, or sent by an IRS-designated private 

delivery service (PDS) on or before the due date. If you don’t 

follow these guidelines, we will consider Form CT-2 filed when it 

is actually received. See Pub. 15 for more information on legal 

holidays. Go to www.irs.gov/PDS for the current list of PDSs. 

For the IRS mailing address to use if you’re using a PDS, go to 

www.irs.gov/PDSstreetAddresses.

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, Kansas City, MO 64999-0049. 

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’re late in 

filing a return or paying the taxes, send an explanation with the 

return. Interest is charged on taxes paid late at the rate set by 

law. 

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 isn’t 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, or

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, 

meaning currency issued by a recognized authority as a 

medium of exchange, for services performed as an employee

representative. It doesn’t 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 1 taxes, compensation doesn’t 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. For purposes of Tier 2 

taxes, compensation doesn’t include payments made under a 

sickness or accident disability plan or a medical or 

hospitalization plan in connection with sickness or accident 

disability. 
Form CT-2 (Rev. 1-2020) Page 3 

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 substantial 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 4, later), then for 

lines 1 and 4 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 1 tax by 

12.4% (0.124). This tax applies only to the first $137,700 paid to 

you during 2020 for services performed as an employee 

representative. 

Line 2. Multiply the compensation subject to Tier 1 Medicare 

tax by 2.9% (0.029). This tax applies to all compensation paid 

to you during 2020 for services performed as an employee 

representative. 

Line 3. Multiply the compensation subject to Tier 1 Additional 

Medicare Tax by 0.9% (0.009). This tax applies only to 

compensation that exceeds $200,000.

Line 4. Multiply the compensation subject to Tier 2 tax by 

13.1% (0.131). This tax applies only to the first $102,300 paid to 

you during 2020 for services performed as an employee 

representative. 

Line 5. Enter a credit for an overpayment of tax, penalty, or 

interest you overpaid for an earlier quarter. Attach two copies of 

a detailed statement explaining the credit claimed. However, 

don’t include a credit for an overpayment of Additional Medicare 

Tax for an earlier year. Any Additional Medicare Tax paid will be 

credited against the total tax liability shown on your Form 1040, 

U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax 

Return for Seniors. If you have filed Form 1040 or 1040-SR for 

the earlier year, you should make a claim for refund for 

Additional Medicare Tax paid using Form 1040-X, Amended 

U.S. Individual Income Tax Return.

Line 6. You may pay the amount shown on line 6 using the 

Electronic Federal Tax Payment System (EFTPS) or by check or 

money order. To get more information about EFTPS or to enroll 

in EFTPS, visit www.eftps.gov, or call 800-555-4477 or 

800-733-4829 (TDD). Additional information about EFTPS is also 

available in Pub. 966.

If you pay by check or money order, make it payable to 

“United States Treasury.” Enter on your check or money order 

your social security number (SSN), “Form CT-2,” and the 

quarter (for example, “1Q 2020” for the first quarter of 2020).

Signature. You or your authorized agent must sign the 

ORIGINAL copy of Form CT-2. 

Name, address, etc. Type or print your name, address, SSN, 

and the name of the labor organization for which you perform 

services.

Return for calendar quarter. Enter the months of the quarter 

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

2020 as “Jan., Feb., Mar. 2020.” 

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 isn’t an 

employee of the filing entity. Paid preparers must sign paper 

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

original return and duplicate copy to be filed with the IRS and 

another copy of the return for your records.

 If you’re 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. For more information about applying for a 

PTIN online, go to www.irs.gov/PTIN. You can’t use your PTIN 

in place of the EIN of the tax preparation firm. 

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 their 

regulations require employee representatives to report and pay 

over to the IRS railroad retirement taxes (Tier 1, Tier 2, Tier 1 

Medicare tax, and Additional Medicare Tax). Form CT-2 is used 

to determine the amount of such taxes that you owe. Section 

6109 requires you to provide your identification numbers. If you 

fail to provide this information in a timely manner, or provide 

false or fraudulent information, you may be subject to penalties. 

You’re 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 and 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. However, section 6103 allows or 

requires the IRS to disclose or give the information shown on 

your tax return to others as described in the Code. For example, 

we disclose your tax information to the Railroad Retirement 

Board for use in administering the Railroad Retirement Act, and 

we may disclose your tax information 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.

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, 26 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 send us comments 

from www.irs.gov/FormComments. You may also mail your 

comments to Internal Revenue Service, Tax Forms and 

Publications Division, 1111 Constitution Ave. NW, IR-6526, 

Washington, DC 20224. Don’t send Form CT-2 to this address. 

Instead, see Where To File, earlier.