Tier 1 Employee Additional Medicare Tax withholding.
In addition to withholding Tier 1 Employee Medicare tax at 1.45%, you must withhold a 0.9% Tier 1 Employee Additional
Medicare Tax from compensation you pay to an employee in excess of $200,000 in a calendar year. You are required to begin
withholding Tier 1 Employee Additional Medicare Tax in the pay period in which you pay compensation in excess of $200,000
to an employee and continue to withhold it each pay period until the end of the calendar year. Tier 1 Employee Additional
Medicare Tax is only imposed on the employee. There is no employer share of Tier 1 Additional Medicare Tax. All compensation
that is subject to Tier 1 Medicare tax is subject to Tier 1 Employee Additional Medicare Tax withholding if paid in excess
of the $200,000 withholding threshold.
Visit IRS.gov and enter “Additional Medicare Tax
” in the search box for more information on Tier 1 Employee Additional Medicare Tax.
Change of address.
Use Form 8822-B, Change of Address or Responsible Party—Business, to notify the IRS of an address change.
Correcting a previously filed Form CT-1.
If you discover an error on a previously filed Form CT-1, make the correction using Form CT-1 X, Adjusted Employer's
Annual Railroad Retirement Tax Return or Claim for Refund. Form CT-1 X is filed separately from Form CT-1. For more information,
see the Instructions for Form CT-1 X or visit IRS.gov and enter “correcting employment taxes
” in the search box.
Federal tax deposits must be made by electronic funds transfer (EFT).
You must use EFT to make all federal tax deposits. Generally, an EFT is made using the Electronic Federal Tax Payment
System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll
service, or other trusted third party to make electronic deposits on your behalf. Also, you may arrange for your financial
institution to initiate a same-day wire payment on your behalf. EFTPS is a free service provided by the Department of Treasury.
Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee.
To get more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www.eftps.gov
, or call 1-800-555-4477 or 1-800-733-4829 (TDD). Additional information about EFTPS is also available in Pub. 966, Electronic
Federal Tax Payment System: A Guide To Getting Started.
Outsourcing payroll duties.
Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer
contracts with a third party to perform these acts. The employer remains responsible if the third party fails to perform any
required action. If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and
paying over taxes imposed by the Railroad Retirement Tax Act, FUTA, and income taxes) to a third-party payer, such as a payroll
service provider or reporting agent, visit IRS.gov and enter “outsourcing payroll duties
” in the search box for helpful information on this topic.
Paid preparers must sign Form CT-1.
Paid preparers must complete and sign the paid preparer's section of Form CT-1.
Where can you get telephone help?
You can call the IRS Business and Specialty Tax Line at 1-800-829-4933 or 1-800-829-4059 (TDD/TTY for persons who
are deaf, hard of hearing, or have a speech disability) Monday–Friday from 7:00 a.m.–7:00 p.m. local time (Alaska and Hawaii
follow Pacific time) for answers to your questions about completing Form CT-1 or tax deposit rules.
Pub. 15 (Circular E), Employer's Tax Guide, contains information for withholding, depositing, reporting, and paying over employment
Pub. 15-A, Employer's Supplemental Tax Guide, contains specialized and detailed employment tax information supplementing the
basic information provided in Pub. 15 (Circular E).
Pub. 15-B, Employer's Tax Guide to Fringe Benefits, contains information about the employment tax treatment of various types
of noncash compensation.
Pub. 915, Social Security and Equivalent Railroad Retirement Benefits, contains the federal income tax rules for social security
benefits and equivalent Tier 1 railroad retirement benefits.
The Railroad Retirement Board (RRB) website at
www.rrb.gov contains additional employer reporting information and instructions.
You can order forms and publications by visiting www.irs.gov/formspubs
or calling 1-800-TAX-FORM (1-800-829-3676).
Photographs of Missing Children
The IRS is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected
by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children home by
looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.