OMB No. 1545-0002

Department of the Treasury—Internal Revenue Service Form CT-2

(Rev. January 1997) Employee Representative’s Quarterly Railroad Tax Return

1 Total work-hours for which compensation was paid during this quarter × $0.35 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

Please T

Be Sure To

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Payment

With This

Return

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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.

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 1997 is 12.4%. It applies only to the first

$65,400 paid to you during 1997 for services performed as an

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

all compensation paid to you during 1997 for services performed as

an employee representative.

The time needed to complete and file this form will vary depending

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 1997 is 14.75%. It applies only to the first

$48,600 paid to you during 1997 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.

Tax based on work-hours.—This supplemental annuity work-hour tax

is 35 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.

(Continued on back of DUPLICATE)

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

imposed on compensation received by employee representatives.

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.

Instructions

(Section references are to the Internal Revenue Code unless otherwise

noted.)

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

the back of the TAXPAYER’S COPY.

Page 1
OMB No. 1545-0002

Department of the Treasury—Internal Revenue Service Form CT-2

(Rev. January 1997) Employee Representative’s Quarterly Railroad Tax Return

1 Total work-hours for which compensation was paid during this quarter × $0.35 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
(a) Any officer or official representative of a railway labor

organization that is not an employer under section 3231(a) who (1)

was in the service of an employer and (2) is authorized and designated

to represent employees under the Railway Labor Act, and

(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.

2. 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

(Continued on back of TAXPAYER’S COPY)

Definitions

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

means:

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 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.” Attach to the final return a statement giving the

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

will be kept.

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 June 2, 1997

April, May, June September 2, 1997

July, August, September December 1, 1997

October, November, December March 2, 1998

If you will not receive taxable compensation in the future, 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.

Records.—You must keep records pertaining to employee

representative taxes for at least 4 years after the taxes are due or

were paid, whichever is later.

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

or 1040EZ for the Privacy Act Notice.

Page 2
OMB No. 1545-0002

Department of the Treasury—Internal Revenue Service Form CT-2

(Rev. January 1997) Employee Representative’s Quarterly Railroad Tax Return

1 Total work-hours for which compensation was paid during this quarter × $0.35 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 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.

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

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

sure it is correct. If incorrect, please 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 1997 as “Jan., Feb., Mar.

1997.”

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

you by $0.35.

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

applies to only the first $65,400 paid during 1997 for services you

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 to you during 1997 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 $48,600 paid to you during 1997 for

services performed as an employee representative.

If you perform 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.

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.

3. Work-hours.—For an explanation of work-hours, see Line 1.

Supplemental Annuity Work-Hour Tax in the Instructions for Form

CT-1.

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.

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