DETACH AND RETAIN THIS COPY

rom CT-2 Department of the Treasury—Internal Revenue Service OMB No. 1545-0002
(Rev. January 1988) Employee Representative’s Quarterly Railroad Tax Return Expires 12-31-89
1 Total work-hours for which compensation was paid duringthis quarter. . . . _..............------ x $0.26

2 Taxable compensation paid during this quarter subject to Tier | tax. x 15.02%

3 Taxable compensation paid during this quarter subject to Tier Il tax x 14.75%

4 Taxable rail wages paid during this quarter subject to RURT. i i x 6.0 %

5 Credit (attach explanation in duplicate) woe Cee woe wee .

6 Total taxes for quarter (add lines 1 through 4 minus line 5). Pay to INTERNAL REVENUE SERVICE. _ >

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 in lines 1 to 6, inclusive, in accordance with the instructions.

YOUR 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 onginal)

TAXPAYER'S:
coPY



General Information—Continued

2. Compensation and rail wages.—The term ‘‘compensation”’
means payment in money, or in something that may be used
instead of money, paid 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

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.

If an individual performs services as both an employee
representative and as an employee, and if the total pay for these
services is more than the annual maximum, subtract the pay as an
employee from the maximum to get the amount subject to the
employee representative tax.

Compensation and rail wages are considered paid when they
are actually paid or when they are constructively paid.

“‘Constructively paid’’ means (a) that the pay 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) that it
is available to draw on at any time and to control.

3. Work-hours.—For an explanation of work-hours, see the
discussion under “Supplemental Tax” in the Instructions for Form
CT-1.

Instructions

Who must file. —As an employee representative, you must file a
return for the first quarter in which you are paid taxable
compensation and rail wages for services you rendered as a
representative. Continue filing returns for each later quarter, even
though you are not paid taxable compensation or rail wages. When
your taxable compensation or rail wage 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.

How to complete and file the return.—This return contains three
copies of Form CT-2. Send the “‘original”’ and the ‘‘duplicate’’ to IRS.
Keep the ‘‘taxpayer's copy" for your records.

Lines 1-4.—Complete these lines as explained on the form itself.


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 IRS has preaddressed the form,
check to be sure it is correct. Correct any entries necessary.
“Return for Calendar Quarter.” —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 1988 as ‘‘Jan., Feb.,
Mar. 1988.”
Signature.—You or your authorized agent must sign each return.
Where to file.—Send both copies of Form CT-2 to the Internal
Revenue Service Center, Kansas City, MO 64999.
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 a reasonable cause for the delay.
If you are unavoidably late in filing a return or paying the taxes, send
a full written explanation with the return.

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 tax is paid, whichever is later.
Privacy Act information.—See the Instructions for preparing Form
1040 or the Instructions for preparing Form 1040EZ and 1040A for
Privacy Act information.

WULS, G.P.O. 1988-199-491 E,1. 43-0787287


DO NOT DETACH

rom CT-

(Rev. January 1988)

Department of the Treasury—Internal Revenue Service

Employee Representative’s Quarterly Railroad Tax Return

OMB No. 1545-0002
Expires 12-31-89

1 Total work-hours for which compensation was paid during this quarter.
2 Taxable compensation paid during this quarter subject to Tier | tax.

3 Taxable compensation paid during this quarter subject to Tier Il tax

4 Taxable rail wages paid during this quarter subject to RURT.

5 Credit (attach explanation in duplicate)
6 Total taxes for quarter (add lines 1 through 4 minus line 5). Pay to INTERNAL REVENUE SERVICE

x
x
x
x

$0.26
15.02%
14.75%
6.0 %

>

Under penalties of perjury, declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, is
true, correct, and complete.

Signature > Date > 19
T
Please FF
Be Sure To FP
Enclose 1
Your T
Payment
With This
Return | employee representative's name, address, and social security number, and name Return for Calendar Quarter ORIGINAL
of organization represented. (If incorrect, please make any necessary changes.) (Months and year)

For Paperwork Reduction Act Notice, see the back of this page.


General Information
Paperwork Reduction Act Notice. —We ask for this information
to carry out the Internal Revenue laws of the United States. We
need it to ensure that taxpayers are complying with these laws and
to allow us to figure and collect the right amount of tax. You are
required to give us this information
Changes you should note.—All Forms CT-2 will now be filed with
the Kansas City Service Center. The Tier | and work-hour tax rates,
as well as the Tier | and Tier Il tax bases, have increased. See
“Railroad retirement taxes” below.
Purpose of form.—Use this form to report railroad retirement
and railroad unemployment repayment taxes imposed on
employee representatives
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.
Taxes based on compensation. —These taxes are divided into Tier
1 and Tier II taxes. The amount of the compensation subject to
each tax is different.

The Tier | tax rate for 1988 is 15.02%. It applies to only the first
$45,000 paid during 1988 for services performed as an employee
representative.

The Tier Il tax rate for 1988 is 14.75%. It applies to only the first
$33,600 paid during 1988 for services performed as an employee
representative,

Tax based on work-hours.—This supplemental tax is 26 cents
for each work-hour for which compensation is paid during the
quarter. Employee representatives will be told the tax rate for each
quarter before the quarter begins.

Railroad unemployment repayment tax.— For 1988, the rate is
6% on the first $7,000 of rail wages paid

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

(a) Any officer or official representative of a railway labor
organization that is not included as an ‘‘employer’’ as defined in
section 323 1(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

(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.

(Continued on back of Duplicate)


DO NOT DETACH

‘OMB No. 1545-0002

Form CT-2 Department of the Treasury—internal Revenue Service
(Rev. January 1988) Employee Representative’s Quarterly Railroad Tax Return Expires 12-31-89
1 Total work-hours for which compensation was paid during this quarter. x $0.26
2 Taxable compensation paid during this quarter subject to Tier | tax. x 15.02%
3 Taxable compensation paid during this quarter subject to Tier Il tax x 14.75%
4 Taxable rail wages paid during this quarter subject to RURT. x 6.0 %
5 Credit (attach explanation induplicatey 2 2. we rr
6 Total taxes for quarter (add lines 1 through 4 minus line 5). Payto INTERNAL REVENUE SERVICE...
File this duplicate copy with the original return.
Employee representative's name, address, and social security number, and name Return for Calendar Quarter DUPLICATE

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