OMB No. 1545-0002

Form CT-2 Employee Representative’s Quarterly Railroad Tax Return (Rev. January 2009)

1 1

2

Taxable compensation paid during this quarter subject to Tier I tax 12.4% (.124)

2

$ ×

3 3

$ × 2.9% (.029)

4

$ × 12.1% (.121)

4

Taxable compensation paid during this quarter subject to Tier II tax 

5 5

Credit (attach explanation in duplicate) 

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

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 ©

T

Be Sure To

Enclose

Your

Check or 

Money

Order

FF

FP

I

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

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

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 16030S Form CT-2 (Rev. 1-2009)

Taxable compensation paid during this quarter subject to Tier I Medicare tax

Department of the Treasury

Internal Revenue Service

Do not cut or separate the forms on this page.

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

1 1

2

Taxable compensation paid during this quarter subject to Tier I tax 12.4% (.124)

2

$ ×

3 3

$ × 2.9% (.029)

4

$ × 12.1% (.121)

4

Taxable compensation paid during this quarter subject to Tier II tax 

5 5

Credit (attach explanation in duplicate) 

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

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

organization represented exactly as shown on ORIGINAL, including any corrections. DUPLICATE (Months and year as on ORIGINAL)

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 16030S Form CT-2 (Rev. 1-2009)

Taxable compensation paid during this quarter subject to Tier I Medicare tax

File this DUPLICATE copy with the ORIGINAL return.

© Complete both copies of Form CT-2.

Date Preparer’s SSN or PTIN

Preparer’s Paid signature

Preparer’s

Use Only

Firm’s name (or

yours if self-employed),

address, and ZIP code Phone no. ( )

©

© EIN

Check

if selfemployed

Form CT-2

(Rev. January 2009)

Department of the Treasury

Internal Revenue Service
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 2009 is 12.4%. It applies only to the first $106,800 paid

to you during 2009 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 2009 for services performed as an employee representative.

The Tier II tax rate for 2009 is 12.1%. It applies only to the first $79,200 paid

to you during 2009 for services performed as an employee representative.

Use this form to report railroad retirement taxes imposed on compensation

received by employee representatives.

General Instructions

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

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.”

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.

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, 2009

April, May, June August 31, 2009

July, August, September November 30, 2009

October, November, December February 28, 2010

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.

Changes to tax rates and payment bases. The Tier I tax rate remains

unchanged at 12.4% but the payment base for 2009 increased to $106,800. The

Tier I Medicare tax rate remains unchanged at 2.9% with an unlimited wage

base. The Tier II tax rate on employee representatives remains unchanged at

12.1% but the Tier II payment base for 2009 increased to $79,200.

Form CT-2 (Rev. 1-2009) Page 2

What’s New

Purpose of Form

Who Must File

When To File

Where To File

Penalties and Interest

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

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.

Employee representative. An employee representative is:

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.

Line 1. Multiply the compensation subject to Tier I tax by 12.4% (.124). This

applies only to the first $106,800 paid during 2009 for services you 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 2009 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 2009 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, 200903 for the first quarter of 2009). 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 2009 as “Jan., Feb., Mar. 2009.”

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:T:SP, 1111 Constitution Ave. NW, IR-6526,

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

Where To File above.

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.

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 filers and paid preparers to provide their 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, and the District of

Columbia 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, you may be subject to penalties and interest.

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

information in the “Paid Preparer’s Use Only” section if the preparer was paid to

prepare Form CT-2. Paid preparers must sign paper returns with a manual

signature. The preparer must give you a copy of the return in addition to the

copy to be filed with the IRS.

If you are a paid preparer, write your SSN or 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 using Form W-7P, Application for Preparer Tax Identification Number.

You cannot use your PTIN in place of the EIN of the tax preparation firm.

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.

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.