Looking for a Form Ct-1 Templates? Download it for free!

2 0

Department of the Treasury

Internal Revenue Service

Instructions for Form CT-1

Employer’s Annual Railroad Retirement Tax Return

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

When To File

General Instructions

File Form CT-1 by March 1, 2004.

What’s New for 2003

Additional Information

•

Adjustments cannot be taken on line 12 for the supplemental

You may find the following publications helpful when preparing

annuity work-hour tax and the special supplemental annuity tax.

Form CT-1.

These taxes were repealed effective for years beginning after

•

Circular E (Pub. 15), Employer’s Tax Guide, contains

December 31, 2001.

•

information for withholding, depositing, reporting, and paying

New Form CT-1(V), Payment Voucher, must be included

employment taxes.

with your return and payment if you have a balance due on

•

Pub 15-A, Employer’s Supplemental Tax Guide, contains

line 15 of Form CT-1. Do not use the voucher to make

specialized and detailed employment tax information

deposits.

•

supplementing the basic information provided in Circular E

You can use RRBLINK to deposit your Federal tax payments

(Pub. 15).

in addition to your railroad retirement payments. If you are

•

Pub 15-B, Employer’s Tax Guide to Fringe Benefits, contains

enrolled in RRBLINK and EFTPS, you may be able to use

information about the employment tax treatment of various

RRBLINK for all your transactions. Contact RRBLINK at

types of noncash compensation.

1-888-273-2265 for more information.

•

Pub. 915, Social Security and Equivalent Railroad

Enhanced Third Party Designee authority. The authority

Retirement Benefits, contains the Federal income tax rules for

given to a designee has been expanded and is now revocable.

social security benefits and equivalent Tier I railroad retirement

Designees will now be able to exchange information with the

benefits.

IRS concerning Form CT-1. They may also request and receive

•

The RRB website at contains additional

written tax information relating to Form CT-1, including copies

employer reporting instructions.

of notices, correspondence, and account transcripts. The

designee may now be any individual, corporation, firm,

Photographs of Missing Children

organization, or partnership. See Third Party Designee on

page 5 for details.

The Internal Revenue Service is a proud partner with the

National Center for Missing and Exploited Children.

Purpose of Form

Photographs of missing children selected by the Center may

appear in instructions on pages that would otherwise be blank.

Use this form to report taxes imposed by the Railroad

You can help bring these children home by looking at the

Retirement Tax Act (RRTA).

photographs and calling 1-800-THE-LOST (1-800-843-5678) if

Who Must File

you recognize a child.

File Form CT-1 if you paid one or more employees

Definitions

compensation subject to RRTA.

The terms “employer” and “employee” used in these

Also, a payer of sick pay (including a third-party) must file

instructions are defined in section 3231 and in its regulations.

Form CT-1 if the sick pay is subject to Tier I railroad retirement

and Medicare taxes. Include sick pay payments on lines 7

Compensation

through 10 of Form CT-1. Follow the reporting procedures for

Compensation means payment in money, or in something that

sick pay reporting (section 6) in Pub. 15-A, Employer’s

may be used instead of money, for services performed as an

Supplemental Tax Guide.

employee of one or more employers. It includes payment for

Disregarded entities and qualified subchapter S

time lost as an employee.

subsidiaries. Form CT-1 taxes for employees of a qualified

Group-term life insurance. Include in compensation the cost

subchapter S subsidiary (QSub) or an entity disregarded as an

of group-term life insurance over $50,000 you provide to an

entity separate from its owner under Regulations section

employee. This amount is subject to Tier I, Tier I Medicare, and

301.7701-2(c)(2) may be reported and paid either:

•

Tier II taxes, but not to Federal income tax withholding. Include

By its owner (as if the employees of the disregarded entity

this amount on your employee’s Form W-2, Wage and Tax

are employed directly by the owner) using the owner’s name

Statement.

and taxpayer identification number (TIN) or

•

By each entity recognized as a separate entity under state

Former employees for whom you paid the cost of group-term

law using the entity’s own name and TIN.

life insurance over $50,000 must pay the employee’s share of

If the second method is chosen, the owner retains

these taxes with their Form 1040. You are not required to

responsibility for the employment tax obligations of the

collect those taxes. For former employees, you must include on

disregarded entity. For more information, see Notice 99-6,

Form W-2 the part of compensation that consists of the cost of

1999-1 C.B. 321.

group-term life insurance over $50,000 and the amount of

railroad retirement taxes owed by the former employee for

Where To File

coverage provided after separation from service. See section 2

of Pub. 15-B for more information.

Send Form CT-1 to:

Timing. Compensation is considered paid when it is actually

Internal Revenue Service Center

paid or when it is constructively paid. It is constructively paid

Cincinnati, OH 45999-0007

when it is set apart for the employee or credited to an account

Cat. No. 16005H

Instructions For Form Ct-1 - Employer'S Annual Railroad Retirement Tax Return - 2003

Related Articles

Related forms

Related Categories