OWE Railroad Retirement CT-1 – File, Settle, Resolve Excise Tax Debt
OWE Railroad Retirement CT-1 -File, Settle, Resolve Tax Debt
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Please find below some of the information regarding the filing of the CT – 1.
File Form CT-1 if you paid one or more employees compensation subject to tax under RRTA.
A payer of sick pay (including a third party) must file Form CT-1 if the sick pay is subject to Tier I railroad retirement taxes.
Include sick pay payments on lines 7–10 of Form. CT-1. Follow the reporting procedures for sick pay reporting in section 6 of Pub. 15-A.
You should disregarded entities and qualified sub chapter S subsidiaries.
Regulations section301.7701-2(c)(2)(iv) treats eligible single-owner disregarded entities and qualified sub chapter S subsidiaries as separate entities for employment tax purposes.
Under these regulations, eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees after December 31, 2008, using the entities’ own names and EINs.
For more information, see Disregarded entities and qualified
sub Chapters-S subsidiaries in the Introduction section of Pub. 15 (Circular E).
Where To File
Send Form CT-1 to:
Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0007
When To File
File Form CT-1 by February 28, 2013.
Definitions
The terms “employer” and “employee” used in these instructions are defined in section 3231 and in its regulations.
Compensation
Compensation means payment in money, or in something that may be used instead of money, for services performed as an employee of one or more employers. It includes payment for time lost as an employee.
A few exceptions are described below under Exceptions. Group-term life insurance. Include in compensation the cost of group-term life insurance over $50,000 you provide loan employee. This amount is subject to Tier I and Tier II taxes, but not to federal income tax withholding.
Include this amount on your employee’s Form W-2, Wage and Tax Statement.
Former employees for whom you paid the cost of group-term life insurance over $50,000 must pay the employee’s share of these taxes with their Form 1040, U.S. Individual Income Tax Return.
You are not required to collect those taxes. For former employees, you must include on Form W-2 the part of compensation that consists of the cost of group-term life insurance over $50,000 and the amount of railroad retirement taxes owed by the former employee for coverage provided after separation from service.
OWE Railroad Retirement CT-1 – File, Settle, Resolve Excise Tax Debt