Form CT-2

(Rev. January 2013)

Department of the Treasury 

Internal Revenue Service 

Employee Representative's Quarterly Railroad Tax Return

▶ Complete both copies of Form CT-2.

OMB No. 1545-0002

1 Taxable compensation paid during this quarter subject to Tier I tax . . $ × 12.4% (.124) 1 

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% (.029) 2 

3 Taxable compensation paid during this quarter subject to Tier I 

Additional Medicare Tax . . . . . . . . . . . . . . $ × 0.9% (.009) 3 

4 Taxable compensation paid during this quarter subject to Tier II tax . . $ × 12.6% (.126) 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 address ▶

Firm's EIN ▶

Phone no. 

For Privacy Act and Paperwork Reduction Act Notice, see page 3. IRS.gov/ct2 Cat. No. 16030S Form CT-2 (Rev. 1-2013) 

Do not cut or separate the forms on this page. 

Form CT-2

(Rev. January 2013)

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 I tax . . $ × 12.4% (.124) 1 

2 Taxable compensation paid during this quarter subject to Tier I Medicare tax $ × 2.9% (.029) 2 

3 Taxable compensation paid during this quarter subject to Tier I 

Additional Medicare Tax . . . . . . . . . . . . . . $ × 0.9% (.009) 3 

4 Taxable compensation paid during this quarter subject to Tier II tax . . $ × 12.6% (.126) 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 as on ORIGINAL) DUPLICATE

For Privacy Act and Paperwork Reduction Act Notice, see page 3. IRS.gov/ct2 Cat. No. 16030S Form CT-2 (Rev. 1-2013) 
Form CT-2 (Rev. 1-2013) 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 2013. The Tier I tax 

rate is 12.4%. Previously, the Tier I tax rate was 10.4%. The Tier 

I compensation base has increased to $113,700. The Tier I 

Medicare tax rate is 2.9%, unchanged from 2012. There is no 

compensation base limit for Tier I Medicare tax. The Tier II tax 

rate on employee representatives is 12.6%. The Tier II 

compensation base has increased to $84,300.

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

Medicare tax of 2.9%, employee representatives are subject to 

0.9% Additional Medicare Tax beginning in the pay period in 

which your compensation for the calendar year exceeds 

$200,000. 

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 a tax on an employee representative, which is based 

on compensation. 

These taxes are comprised of Tier I and Tier II taxes. The 

amount of compensation subject to each tax is different. 

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

$113,700 paid to you during 2013 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 2013 for services 

performed as an employee representative. The Tier I Additional 

Medicare Tax is 0.9%. It applies to compensation paid to you 

during 2013 that exceeds $200,000 for services performed as 

an employee representative.

The Tier II tax rate on employee representatives is 12.6%. It 

applies only to the first $84,300 paid to you during 2013 for 

services performed as an employee representative.

Who Must File 

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, you must file a final return. Write “Final Return” 

at the top of Form CT-2.

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, 2013 

April, May, June August 31, 2013 

July, August, September November 30, 2013 

October, November, December February 28, 2014 

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.

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, Cincinnati, OH 45999-0007. 

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 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 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, 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, or in 

something that may be used instead of money, for services 

performed as an employee representative. It 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. For 

purposes of Tier II taxes, compensation does not include 

payments made under a sickness or accident disability plan or a 

medical or hospitalization plan in connection with sickness or 

accident disability. 

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 below), 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 I tax by 12.4% 

(.124). This tax applies only to the first $113,700 paid to you 

during 2013 for services performed as an employee 

representative. 
Form CT-2 (Rev. 1-2013) Page 3 

Line 2. Multiply the compensation subject to Tier I Medicare tax 

by 2.9% (.029). This tax applies to all compensation paid to you 

during 2013 for services performed as an employee 

representative. 

Line 3. Multiply the compensation subject to Tier I Additional 

Medicare Tax by 0.9% (.009). This tax applies only to 

compensation that exceeds $200,000.

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

12.6% (.126). This tax applies only to the first $84,300 paid to 

you during 2013 for services performed as an employee 

representative. 

Line 5. 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 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 1-800-555-4477. 

Additional information about EFTPS is also available in Pub. 

966, Electronic Federal Tax Payment System: A Guide To 

Getting Started.

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

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

your social security number, "Form CT-2," and the quarter (for 

example, 201301 for the first quarter of 2013).

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.

Return for calendar quarter. Enter the months of the quarter 

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

2013 as “Jan., Feb., Mar. 2013.” 

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 is not an 

employee of the filing entity. Paid preparers must sign paper 

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

original return to be filed with the IRS and a copy of the return 

for your records.

 If you are 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. If you are a paid preparer, you can apply 

for a PTIN at www.irs.gov/ptin, or by filing Form W-12, IRS Paid 

Preparer Tax Identification Number (PTIN) Application and 

Renewal. You cannot use your PTIN in place of the EIN of the 

tax preparation firm.

Generally, you are not required to complete this section if you 

are filing the return as a reporting agent and have a valid Form 

8655, Reporting Agent Authorization, on file with the IRS. 

However, a reporting agent must complete this section if the 

reporting agent offered legal advice, for example, by advising 

the client on determining whether its workers are employees or 

independent contractors for federal tax purposes.

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 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. 

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, 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. If you fail to provide this information in a 

timely manner, or provide false or fraudulent information, you 

may be subject to penalties.

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. 

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 email us at 

taxforms@irs.gov. Enter "Form CT-2" on the subject line. Or 

write to: Internal Revenue Service, Tax Products Coordinating 

Committee, SE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW, 

IR-6526, Washington, DC 20224. Do not send Form CT-2 to 

this office. Instead, see Where To File, earlier.