2023-26101. Publication of the Tier 2 Tax Rates

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Notice.

SUMMARY:

Publication of the tier 2 tax rates for calendar year 2024 as required by section 3241(d) of the Internal Revenue Code. Tier 2 taxes on railroad employees, employers, and employee representatives are one source of funding for benefits under the Railroad Retirement Act.

DATES:

The tier 2 tax rates for calendar year 2024 apply to compensation paid in calendar year 2024.

FOR FURTHER INFORMATION CONTACT:

Kathleen Edmondson, CC:EEE:EOET:ET1, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224, Telephone Number (202) 317–6798 (not a toll-free number).

Tier 2 Tax Rates: The tier 2 tax rate for 2024 under section 3201(b) on employees is 4.9 percent of compensation. The tier 2 tax rate for 2024 under section 3221(b) on employers is 13.1 percent of compensation. The tier 2 tax rate for 2024 under section 3211(b) on employee representatives is 13.1 percent of compensation.

Rachel D Levy,

Associate Chief Counsel (Employee Benefits, Exempt Organizations and Employment Taxes).