INSTRUCTIONS PROVIDED FOR COMPUTATION OF RAILROAD RETIREMENT TAXES ON RETROACTIVE WAGES
Rev. Proc. 84-64; 1984-2 C.B. 550
- Institutional AuthorsInternal Revenue Service
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Rev. Proc. 84-64
SECTION 1. PURPOSE
The purpose of this revenue procedure is to update and supersede Rev. Proc. 83-84, 1983-2 C.B. 601 by providing instructions for the computation of employer tax and employee tax to be reported on Form CT-1, Employer's Annual Railroad Retirement Tax Return--1984, under the Railroad Retirement Tax Act (chapter 22, subtitle C, Internal Revenue Code) (RRTA), with respect to compensation paid during 1984 for services rendered after 1969 and before 1984, upon a request by an employee, as provided by section 3231(e)(2) of the Code. For services rendered before 1970 see Rev. Proc. 71-3, 1971-1 C.B. 659.
SEC. 2. BACKGROUND
Rev. Proc. 83-84 provides instructions for the computation of employer tax and employee tax to be reported on Form CT-1, Employer's Annual Railroad Retirement Tax Return--1983, under the RRTA, with respect to compensation paid during 1983 for services rendered after 1969 and before 1983, upon a request by an employee, as provided by section 3231(e)(2) of the Code.
The 1984 revision of Form CT-1 will provide entry spaces and rates for computing Tier I employer and employee taxes and Tier II employer and employee taxes with respect to compensation for services rendered during 1984. The form does not provide a schedule for computation of tax with respect to compensation paid during 1984 for services rendered before 1984, upon a request by an employee, as provided by section 3231(e)(2) of the Code. A single entry line is provided for the reporting of such taxes, which may be computed by reference to his revenue procedure. The 1984 revision of instructions relating to Form CT-1 will refer taxpayers to this revenue procedure. Form CT-1 provides space for computation of the supplemental tax based on workhours for services rendered after October 31, 1966. Accordingly, no provision is made in this revenue procedure for the computaton of the supplemental tax.
SEC. 3 MAXIMUM AMOUNT OF COMPENSATION EARNED IN A MONTH THAT IS SUBJECT TO TAXES.
The Tier I and Tier II taxes apply to compensation that does not exceed the amounts shown below, for services rendered in a calendar month:
Tier I Taxes
___________________________________________________________
Period in which Maximum per calendar
services were rendered month
___________________________________________________________
Calendar year 1983 $2,975.00
Calendar year 1982 2,700.00
Calendar year 1981 2,475.00
Calendar year 1980 2,158.33
Calendar year 1979 1,908.33
Calendar year 1978 1,475.00
Calendar year 1977 1,375.00
Calendar year 1976 1,275.00
Calendar year 1975 1,175.00
Calendar year 1974 1,100.00
Calendar year 1973 900.00
Calendar year 1972 750.00
After Dec. 31, 1969, and before 1972 650.00
Tier II Taxes
___________________________________________________________
Period in which Maximum per
services were rendered calendar month
___________________________________________________________
Calendar year 1983 $2,225.00
Calendar year 1982 2,025.00
Calendar year 1981 1,850.00
Calendar year 1980 1,700.00
Calendar year 1979 1,575.00
Calendar year 1978 1,475.00
Calendar year 1977 1,375.00
Calendar year 1976 1,275.00
Calendar year 1975 1,175.00
Calendar year 1974 1,100.00
Calendar year 1973 900.00
Calendar year 1972 750.00
After Dec. 31, 1969, and before 1972 650.00
If an employee is paid compensation (including compensation with respect to which a request has been made under section 3231(e)(2) of the Code) by two or more employers for services rendered in a calendar month, and the total compensation exceeds the maximum amount subject to tax for that month, the amount of compensation paid by each employer that is subject to tax should be computed in accordance with paragraph E or F of the instructions relating to Form CT-1 (except that the monthly maximum applicable to that month should be used in lieu of the amount stated in paragraph E or F).
SEC. 4 COMPUTATION OF TIER I EMPLOYER AND EMPLOYEE TAX AND TIER II EMPLOYER AND EMPLOYEE TAX
The schedule shown below is provided as a guide for computing the employer and employee taxes applicable to compensation paid during 1984 for services rendered after 1969 and before 1984, upon a request by an employee, as provided by section 3231(e)(2) of the Code.
1. Computation of Tier I employer and employee tax for services rendered after 1969, and before 1984:
___________________________________________________________
Period in which Compensation paid
compensation paid during during 1984 for such
1984 was earned services, subject to Tier
I employer and employee
tax
(a) (b)
___________________________________________________________
After Dec. 31, 1981, and $
before 1984
Calendar year 1981
After Dec. 31, 1978, and
before 1981
Calendar year 1978
After Sept. 30, 1973, and
before 1978
After Dec. 31, 1972, and
before Oct. 1, 1973
After Dec. 31, 1970, and
before 1973
Calendar year 1970
(continued below)
___________________________________________________________
Period in which Rate of Tier I employer
compensation paid during and employee tax on such
1984 was earned compensation (percent)
(a) (c)
___________________________________________________________
After Dec. 31, 1981, and 13.40
before 1984
Calendar year 1981 13.30
After Dec. 31, 1978, and 12.26
before 1981
Calendar year 1978 12.10
After Sept. 30, 1973, and 11.70
before 1978
After Dec. 31, 1972, and 21.20
before Oct. 1, 1973
After Dec. 31, 1970, and 19.90
before 1973
Calendar year 1970 19.10
(continued below)
___________________________________________________________
Period in which Amount of Tier I
compensation paid during employer and employee
1984 was earned tax (col. (b) x col. (c))
(a) (d)
___________________________________________________________
After Dec. 31, 1981, and $
before 1984
Calendar year 1981
After Dec. 31, 1978, and
before 1981
Calendar year 1978
After Sept. 30, 1973, and
before 1978
After Dec. 31, 1972, and
before Oct. 1, 1973
After Dec. 31, 1970, and
before 1973
Calendar year 1970
2. Computation of Tier II employer tax for services
rendered after September 30, 1973, and before 1984:
___________________________________________________________
Period in which Compensaton paid
compensation paid during during 1984 for such
1984 was earned services, subject to Tier
I employer tax
(e) (f)
___________________________________________________________
After Sept. 30, 1981, and $
before 1984
After Sept. 30, 1973, and $
before October 1, 1981
(continued below)
___________________________________________________________
Period in which Rate of Tier II employer
compensation paid during tax (percent)
1984 was earned
(e) (g)
___________________________________________________________
After Sept. 30, 1981, and 11.75
before 1984
After Sept. 30, 1983, and 9.50
before October October 1, 1981
(continued below)
___________________________________________________________
Period in which Amount of Tier II
compensation paid during employer tax
1984 was earned (col. (f) x col. (g))
(e) (h)
___________________________________________________________
After Sept. 30, 1981, and $
before 1984
After Sept. 30, 1973, and $
before October 1, 1981
___________________________________________________________
3. Computation of Tier II employee tax for services
rendered after September 30, 1981, and before 1984:
___________________________________________________________
Period in which Compensaton paid
compensation paid during during 1984 for such
1984 was earned services, subject to
Tier II employee tax
(i) (k)
___________________________________________________________
After Sept. 30, 1981, and $
before 1984
(continued below)
___________________________________________________________
Period in which Rate of Tier II employer
compensation paid during tax (percent)
1984 was earned
(i) (l)
___________________________________________________________
After Sept. 30, 1981, and 2.00
before 1984
(continued below)
___________________________________________________________
Period in which Amount of Tier II employee
compensation paid during tax (col. (k) x col. (1))
1984 was earned
(i) (m)
___________________________________________________________
After Sept. 30, 1981, and $
before 1984
___________________________________________________________
4. Total Tier I employer and employee taxes (from col. (d))
above $___________.
5. Total applicable Tier II employer tax (from col. (h))
above $___________.
6. Total applicable Tier II employee tax (from col. (m))
above $___________.
7. Total taxes (line 4 plus line 5 plus line 6) $_________.
Enter on Form CT-1 and attach explanation in duplicate.
SEC. 5. EFFECT ON OTHER REVENUE PROCEDURES
Rev. Proc. 83-84 is superseded.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
