Federal Employee Representative's Quarterly Railroad Tax Return

Employee Representative's Quarterly Railroad Tax Return
Form CT-2 (Rev. March 2023)
CT-2

Form
(Rev. March 2023)

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

Complete both copies of Form CT-2.
Go to www.irs.gov/CT2 for the latest information.

Department of the Treasury
Internal Revenue Service

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

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) .

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5

6

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

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6

3

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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

Pay by
EFTPS or
Enclose
Your
Check or
Money
Order

Date

T
FF
FP

Paid
Preparer
Use Only

Print/Type preparer’s name

I
T

Return for Calendar Quarter
(Months and year)

Employee representative’s name, address, and social security number, and name
of organization represented.
Preparer’s signature

Date

ORIGINAL
Check
if
self-employed

Firm’s name

Firm’s EIN

Firm’s address

Phone no.

For Privacy Act and Paperwork Reduction Act Notice, see page 3.

PTIN

Form CT-2 (Rev. 3-2023)

Cat. No. 16030S

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

CT-2

Form
(Rev. March 2023)

Employee Representative’s Quarterly Railroad Tax Return

OMB No. 1545-0002

Department of the Treasury
Internal Revenue Service

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

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

.

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.

.

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6

3

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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.
For Privacy Act and Paperwork Reduction Act Notice, see page 3.

Return for Calendar Quarter
(Months and year)
Cat. No. 16030S

DUPLICATE
Form CT-2 (Rev. 3-2023)

Page 2

Form CT-2 (Rev. 3-2023)

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

Quarter covered:

Future Developments

April, May, June

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.

July, August, September

What’s New
Tax rates and compensation bases for 2023. The Tier 1 tax
rate is 12.4%. The Tier 1 compensation base is $160,200. 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 $118,800.

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/ADMTfaqs.

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
$160,200 paid to you during 2023 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 2023 for
services performed as an employee representative. The Tier 1
Additional Medicare Tax is 0.9%. It applies to compensation
paid to you during 2023 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 $118,800 paid to you during 2023 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.

January, February, March

October, November, December

Due by:
May 31, 2023
August 31, 2023
November 30, 2023
February 29, 2024

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. 3-2023)

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.

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.

Specific Instructions

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.

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 $160,200 paid to
you during 2023 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 2023 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 $118,800 paid to
you during 2023 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. To contact
EFTPS using Telecommunications Relay Services (TRS) for
people who are deaf, hard of hearing, or have a speech
disability, dial 711 and then provide the TRS assistant the
800-555-4477 number above or 800-733-4829. 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 2023” for the first quarter of 2023).
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
2023 as “Jan., Feb., Mar. 2023.”

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.