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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

tax deposit rules, or obtaining an employer identification

otherwise noted.

number (EIN).

What’s New

Photographs of Missing Children

Changes to tax rates and compensation bases. For

The Internal Revenue Service is a proud partner with the

2007 tax rates and compensation bases, see Employer and

National Center for Missing and Exploited Children.

Employee Taxes — Tax Rates and Compensation Bases on

Photographs of missing children selected by the Center may

page 2.

appear in instructions on pages that would otherwise be

blank. You can help bring these children home by looking at

Disregarded entities and qualified subchapter S

the photographs and calling 1-800-THE-LOST

subsidiaries. The IRS has published final regulations (T.D.

(1-800-843-5678) if you recognize a child.

9356) under which QSubs and eligible single-owner

disregarded entities are treated as separate entities for

General Instructions

employment tax and reporting purposes. For more

information, see Disregarded entities and qualified

subchapter S subsidiaries under Who Must File.

Purpose of Form

RRBLINK discontinued. December 31, 2007, is the last

Use Form CT-1 to report taxes imposed by the Railroad

day to make a payment using RRBLINK. Beginning January

Retirement Tax Act (RRTA). Use Form 941, Employer’s

1, 2008, make all of your electronic payments using the

QUARTERLY Federal Tax Return, or, if applicable, Form

Electronic Federal Tax Payment System (EFTPS). For more

944, Employer’s ANNUAL Federal Tax Return, to report

information on EFTPS, see Electronic payment below.

federal income taxes withheld from your employees’ wages.

Reminders

Who Must File

Additional information.

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

•

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

compensation subject to tax under RRTA.

information for withholding, depositing, reporting, and paying

A payer of sick pay (including a third party) must file Form

employment taxes.

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

•

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

and Medicare taxes. Include sick pay payments on lines 7

specialized and detailed employment tax information

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

supplementing the basic information provided in

for sick pay reporting in section 6 of Pub. 15-A, Employer’s

Pub. 15 (Circular E).

Supplemental Tax Guide.

•

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

Disregarded entities and qualified subchapter S

contains information about the employment tax treatment of

subsidiaries. Under Notice 99-6, Form CT-1 taxes for

various types of noncash compensation.

•

employees of a qualified subchapter S subsidiary (QSub) or

Pub. 915, Social Security and Equivalent Railroad

an entity disregarded as an entity separate from its owner

Retirement Benefits, contains the federal income tax rules

under Regulations section 301.7701-2(c)(2) may be

for social security benefits and equivalent Tier I railroad

reported and paid either:

retirement benefits.

•

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

The Railroad Retirement Board (RRB) website at

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

contains additional employer reporting

and taxpayer identification number (TIN), or

information and instructions.

•

By each entity recognized as a separate entity under state

You can order forms and publications by calling

law using the entity’s own name and TIN.

1-800-829-3676 or visiting the IRS website at

If the second method is chosen, the owner retains

Electronic payment. Now, more than ever before,

responsibility for the employment tax obligations of the

businesses can enjoy the benefits of paying their federal

disregarded entity on wages paid prior to January 1, 2009.

taxes and railroad retirement payments electronically.

You can find Notice 99-6 on page 12 of Internal Revenue

Whether you rely on a tax professional or handle your own

Bulletin 1999-3 at

taxes, the IRS offers you convenient programs to make it

The IRS has published final regulations (T.D. 9356)

easier. Spend less time on taxes and more time running

under which QSubs and eligible single-owner disregarded

your business. Use Electronic Federal Tax Payment System

entities are treated as separate entities for employment tax

(EFTPS) to your benefit. To learn more about EFTPS, visit

and reporting purposes. Under T.D. 9356, disregarded

or call EFTPS Customer Service at

entities, and the owners of such entities may continue to use

1-800-555-4477.

the first method permitted for wages paid prior to January 1,

Where can you get telephone help? You can call the IRS

2009. A taxpayer may switch to the second method with

toll free at 1-800-829-4933 on Monday through Friday from

respect to wages paid on or after August 16, 2007, and

7 a.m. to 10 p.m. local time (Alaska and Hawaii follow

before January 1, 2009, without seeking permission of the

Pacific time) to order tax deposit coupons (Form 8109) and

Commissioner. Taxpayers who switch from the first method

for answers to your questions about completing Form CT-1,

to the second method with respect to wages paid prior to

Cat. No. 16005H

Instructions For Form Ct-1 - Employer'S Annual Railroad Retirement Tax Return - Internal Revenue Service - 2007

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