Section 3201 of the Internal Revenue
Code imposes a tax on railroad employees' earnings at a rate equal
to the social security tax rate, as well as a tax on income
commonly known as Tier II tax. Section 3221 imposes the equivalent
of employer FICA tax and a Tier II tax, on the employer. Use Form
CT-1 to report taxes imposed by the Railroad Retirement Tax Act
(RRTA). Section 31.6011(a)-2(a)(1) of the employment tax
regulations requires the employer to file Form CT-1 annually. Form
CT-1X is used to correct errors on a previously filed Form CT-1.
Use Form CT-1X to correct: • Tier 1 Employee tax, Tier 1 Employee
Medicare tax, Tier 1 Employee Additional Medicare Tax, and Tier 2
Employee tax; and • Tier 1 Employer tax, Tier 1 Employer Medicare
tax, and Tier 2 Employer tax.
US Code:
26
USC 3201 Name of Law: Rate of tax (employee)
US Code: 26
USC 3221 Name of Law: Rate of tax (employer)
PL: Pub.L. 116 - 127 7001 Name of Law:
Families First Coronavirus Response Act
PL: Pub.L. 116 - 136 2301 Name of Law: Coronavirus Aid, Relief, and
Economic Security Act
IRS has significantly revised
the 2020 Form CT-1 and CT-1X to allow for the reporting of new
employment tax credits and the deferral of deposit and payment of
certain taxes from the following provisions. • P.L. 116-127:
Section 7001, Payroll credit for required paid sick leave; Section
7003, Payroll credit for required family leave; and Section 7005,
Wages paid by reason of the Emergency Paid Sick Leave Act and the
Emergency Family and Medical Leave Expansion Act not considered
compensation under section 3221(a) • P.L. 116-136: Section 2301
Employee Retention Credit; and Section 2302, Delay of payment for
employer payroll taxes. The changes to Form CT-1 will result in an
estimated burden increase of 5,985 hours. Changes to Form CT-1X
will result in an estimated burden increase of 5,615 hours. IRS is
making this submission to renew the OMB approval.
$75,729
No
Yes
Yes
No
No
No
No
Johnny On 916 974-5038
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.