Table of Contents
- Line 1—Tier I Employer Tax
- Line 2—Tier I Employer Medicare Tax
- Line 3—Tier II Employer Tax
- Line 4—Tier I Employee Tax
- Line 5—Tier I Employee Medicare Tax
- Line 6—Tier II Employee Tax
- Lines 7–10—Tier I Taxes on Sick Pay
- Line 12—Adjustments to Taxes Based on Compensation
- Line 13—Total Railroad Retirement Taxes Based on Compensation
- Line 14—Total Deposits for the Year
- Line 15— Balance Due
- Line 16— Overpayment
- Part II. Record of Railroad Retirement Tax Liability
- Third-Party Designee
- Who Must Sign
- Paid Preparer Use Only
Enter the compensation (other than tips and sick pay) subject to Tier I Employer tax in the Compensation column. Multiply by 6.2% and enter the result in the Tax column. Do not enter more than $110,100 per employee in the Compensation column on lines 1 and 7 combined.
Enter the compensation (other than tips and sick pay) subject to Tier I Employer Medicare tax in the Compensation column. Multiply by 1.45% and enter the result in the Tax column.
Enter the compensation (other than tips) subject to Tier II Employer tax in the Compensation column. Do not enter more than $81,900 per employee. Multiply by 12.1% and enter the result in the Tax column.
Enter the compensation, including tips reported (but excluding sick pay), subject to Tier I Employee tax in the Compensation column. Multiply by 4.2% and enter the result in the Tax column. Do not enter more than $110,100 per employee in the Compensation column on lines 4 and 9 combined.
Stop collecting the 4.2% Tier I Employee tax when the employee's wages (including sick pay) and tips reach the maximum for the year ($110,100 for 2012). However, your liability for Tier I Employer tax on compensation continues until the compensation (including sick pay), but not including tips, totals $110,100 for the year.
Enter the compensation, including tips reported (but excluding sick pay), subject to Tier I Employee Medicare tax in the Compensation column. Multiply by 1.45% and enter the result in the Tax column. For information on reporting tips, see Tips, earlier.
Enter the compensation, including tips reported, subject to
Tier II Employee tax in the Compensation column. Only the first $81,900 of the employee's compensation for 2012 is subject to this tax. Multiply by 3.9% and enter the result in the Tax column. For information on reporting tips, see Tips, earlier.
Enter any sick pay payments during the year that are subject to Tier I taxes and Tier I Medicare taxes in the Compensation column. Multiply by the rate for the line and enter the result in the Tax column for that line. For Tier I Employer taxes, do not enter more than $110,100 per employee in the Compensation column on lines 1 and 7 combined. For Tier I Employee taxes, do not enter more than $110,100 per employee in the Compensation column on lines 4 and 9 combined. Tier I Medicare taxes are not subject to this limitation.
If you are a railroad employer paying your employees sick pay, or a third-party payer who did not notify the employer of the payments (thereby subject to the employee and employer tax), make entries on lines 7–10. If you are subject to only the employer or employee tax, complete only the applicable lines. Multiply by the appropriate rates and enter the results in the Tax column.
Enter on line 12:
A fractions of cents adjustment (see Adjustment for fractions of cents, later);
Credits for overpayments of penalty or interest paid on tax for earlier years; and
Any uncollected Tier I Employee tax, Tier I Employee Medicare tax, and Tier II Employee tax on tips.
Enter the total of these adjustments in the Tax column. If you are reporting both an addition and a subtraction, enter only the difference between the two on line 12. If the net adjustment is negative, report the amount on line 12 using a minus sign, if possible. If your computer software does not allow the use of minus signs, you may use parentheses.
Do not include on line 12 any 2011 overpayment that is applied to this year's return (this is included on line 14).
An explanation of the item the adjustment is intended to correct showing the compensation subject to Tier I and
Tier II taxes and their respective tax rates.
The amount of the adjustment.
The name and account number of any employee from whom employee tax was undercollected or overcollected.
How you and the employee have settled any undercollection or overcollection of employee tax.
Combine the amounts shown on lines 11 and 12 and enter the result on line 13.
Enter the total Form CT-1 deposits for the year, including any overpayment that you applied from filing Form CT-1 X and any overpayment that you applied from your 2011 return.
If line 13 is more than line 14, enter the difference on line 15. Otherwise, see Overpayment below. You do not have to pay if line 15 is under $1. Generally, you should show a balance due on line 15 only if your total railroad retirement taxes based on compensation for the year (line 13) is less than $2,500. However, see Accuracy of Deposits Rule, earlier, regarding payments made under the accuracy of deposits rule.
You may pay the amount shown on line 15 using EFTPS or a check or money order. For more information on electronic payment options, visit the IRS website at www.irs.gov/e-pay.
If you pay by EFTPS, file your return using the address under Where To File, earlier. Do not file Form CT-1(V), Payment Voucher. If you pay by check or money order, make it payable to the “United States Treasury.” Enter your EIN, Form CT-1, and the tax period on your check or money order. Complete Form CT-1(V) and enclose with Form CT-1.
If line 14 is more than line 13, enter the difference on line 16. Never make an entry on both lines 15 and 16. If line 16 is less than $1, we will send you a refund or apply it to your next return only if you ask us in writing to do so.
If you deposited more than the correct amount for the year, you can have the overpayment refunded or applied to your next return by checking the appropriate box on line 16. Check only one box on line 16. If you do not check either box or if you check both boxes, generally we will apply the overpayment to your account. We may apply your overpayment to any past due tax account that is shown in our records under your EIN.
This is a summary of your yearly tax liability, not a summary of deposits made. If line 13 is less than $2,500, do not complete Part II or Form 945-A.
If you are a monthly schedule depositor, enter your tax liability for each month and figure the total liability for the year. If you do not enter your tax liability for each month, the IRS will not know when you should have made deposits and may assess an “averaged” failure-to-deposit penalty. See section 11 of Pub. 15 (Circular E). If your tax liability for any month is negative (for example, if you are adjusting an overreported liability in a prior month), do not enter a negative amount for the month. Instead, enter zero for the month and subtract that negative amount from your tax liability for the next month.
The amount shown on line V must equal the amount shown on line 13.
If you are a semiweekly schedule depositor or if you accumulate $100,000 or more in tax liability on any day in a deposit period, you must complete Form 945-A and file it with Form CT-1. Do not complete lines I–V if you file Form 945-A.
If you want to allow an employee of your business, a return preparer, or another third party to discuss your 2012 Form CT-1 with the IRS, check the “Yes” box in the “Third-Party Designee” section. Also, enter the designee's name, phone number, and any five digits that person chooses as his or her personal identification number (PIN).
By checking the “Yes” box, you are authorizing the IRS to speak with the designee to answer any questions relating to the processing of or the information reported on Form CT-1. You are also authorizing the designee to:
Give the IRS any information that is missing from your return,
Call the IRS for information about processing your return, and
Respond to certain IRS notices that you have shared with the designee about math errors and return preparation. The IRS will not send notices to your designee.
You are not authorizing the designee to receive any refund check, bind you to anything (including additional tax liability), or otherwise represent you before the IRS. If you want to expand the designee's authority, see Pub. 947, Practice Before the IRS and Power of Attorney.
The authorization will automatically expire 1 year from the due date (without regard to extensions) for filing your 2012 Form CT-1. If you or your designee wants to revoke this authorization, send the revocation or withdrawal to the IRS office at which you file your Form CT-1. See Pub. 947 for more information.
Form CT-1 must be signed as follows:
Sole proprietorship—The individual who owns the business.
Corporation (including a limited liability company (LLC) treated as a corporation)—The president, vice-president, or other principal officer duly authorized to sign.
Partnership (including an LLC treated as a partnership) or unincorporated organization—A responsible and duly authorized partner, member, or officer having knowledge of its affairs.
Single member LLC treated as a disregarded entity for federal income tax purposes—The owner of the LLC or a principal officer duly authorized to sign.
Trust or estate—The fiduciary.
Form CT-1 also may be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.
A paid preparer must sign Form CT-1 and provide the information in the Paid Preparer Use Only section of Part I if the preparer was paid to prepare Form CT-1 and is not an employee of the filing entity. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS.
If you are a paid preparer, write 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 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.
|More Online Instructions|