Rev. Proc. 83-84
Rev. Proc. 83-84; 1983-2 C.B. 601
- Cross-Reference
26 CFR 601.602: Forms and instructions. (Also Part 1, Sections
3201, 3221, 3231; 31.3201-1, 31.3221-1.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 84-64
SECTION 1. PURPOSE
The purpose of this revenue procedure is to update and supersede Rev. Proc. 75-9, 1975-1 C.B. 649, 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-1983, under the Railroad Retirement Tax Act (chapter 22, subtitle C, Internal Revenue Code) (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. For services rendered before 1970 see Rev. Proc. 71-3, 1971-1 C.B. 659.
SEC. 2. BACKGROUND
Rev. Proc. 75-9 provides instructions for the computation of employer tax and employee tax to be reported on Form CT-1, Employer's Quarterly Railroad Retirement Tax Return-1975, and employee representative tax to be reported on Form CT-2, Employee Representative's Quarterly Railroad Retirement Tax Return-1975, under the RRTA. Rev. Proc. 75-9 has not been previously updated because the information it contains has been printed in the instructions relating to Form CTI since 1976. This information will no longer be printed in the instructions. Rev. Proc. 75-9 contains instructions concerning the computation of employee representative tax. These instructions are obsolete because of amendments to the RRTA contained in Pub. L. 94-93, 1975-2 C.B. 528.
The 1983 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 1983. The form does not provide a schedule for computation of tax with respect to compensation paid during 1983 for services rendered before 1983, 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 this revenue procedure. The 1983 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 computation 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 services Maximum per calendar month
were rendered
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 services Maximum per calendar month
were rendered
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 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.
1. Computation of Tier I employer and employee tax for
services rendered after 1969, and before 1983:
Period in which Compensation paid Rate of Tier I Amount of
compensation during 1983 for employer and Tier I
paid during such services, employee tax employer and
1983 was subject to Tier I on such employee tax
earned employer and compensation (col. (b) x
employee tax (percent) col. (c))
(a) (b) (c) (d)
--------------------------------------------------------------------
Calendar year 1982 $ 13.40 $
Calendar year 1981 13.30
After Dec. 31, 1978,
and before 1981 12.26
Calendar year 1978 12.10
After Sept. 30,
1973, and
before 1978 11.70
After Dec. 31, 1972,
and before
Oct. 1, 1973 21.20
After Dec. 31, 1970
and before 1973 19.90
Calendar year 1970 19.10
2. Computation of Tier II employer tax for services rendered
after September 30, 1973, and before 1983:
Period in which Compensation paid Rate of Amount of
compensation paid during 1983 for Tier II Tier II
during 1983 was such services employer tax employer tax
earned subject to Tier (percent) (col. (f) x
II employer tax col. (g))
(e) (f) (g) (h)
--------------------------------------------------------------------
After Sept. 30,
1973, and before
October 1, 1981 $ 9.50 $
After Sept. 30,
1981, and
before 1983 $ 11.75 $
3. Computation of Tier II employee tax for services rendered
after September 30, 1981, and before 1983:
Period in which Compensation paid Rate of Amount of
compensation paid during 1983 for Tier II Tier II
during 1983 was such services, employee tax employee tax
earned subject to Tier (percent) (col. (k) x
II employee tax col. (l))
(i) (k) (l) (m)
--------------------------------------------------------------------
After Sept. 30,
1981 and
before 1983 $ 2.00 $
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 employer tax from (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. 75-9 is superseded.
- Cross-Reference
26 CFR 601.602: Forms and instructions. (Also Part 1, Sections
3201, 3221, 3231; 31.3201-1, 31.3221-1.)
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
