[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-935]
[[Page Unknown]]
[Federal Register: January 14, 1994]
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RAILROAD RETIREMENT BOARD
20 CFR Part 209
RIN 3220-AB04
Railroad Employers' Reports and Responsibilities
AGENCY: Railroad Retirement Board.
ACTION: Interim final rule.
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SUMMARY: The Railroad Retirement Board (Board) hereby amends its
regulations to increase the amount of gross earnings required to be
reported by employers. This amendment is necessary to reflect increases
in the tax and benefit bases.
DATES: Effective Date: This rule is effective January 14, 1994.
Comments: The Board will consider comments received by the public up to
February 14, 1994.
ADDRESSES: Secretary to the Board, Railroad Retirement Board, 844 Rush
Street, Chicago, Illinois 60611.
FOR FURTHER INFORMATION CONTACT: Thomas W. Sadler, Assistant General
Counsel, Railroad Retirement Board, 844 Rush Street, Chicago, Illinois
60611, (312) 751-4513, TDD (312) 751-4701.
SUPPLEMENTARY INFORMATION: Benefits under the Railroad Retirement Act
(RRA) are financed by an employment tax imposed under the Railroad
Retirement Tax Act (RRTA) upon wages paid by railroad employers. The
tax has two components, a tier I level and a tier II level. The tier I
level is the same as the tax imposed by the Federal Insurance
Contributions Act (FICA) and is used to finance what are the equivalent
of social security benefits payable under the RRA. The amount of
compensation subject to tax is based upon the contribution and benefit
base as defined in section 230 of the Social Security Act (see 26
U.S.C. 3231(e)(2)(B)). The contribution base generally rises each year
to reflect increases in the national wage rate. In order to estimate
future revenues the Board has required employers to report gross
earnings, up to $300,000, of a one-percent sample of their employees
(20 CFR 209.12). However, the Omnibus Budget Reconciliation Act of 1993
eliminated the wage cap base for the Hospital Insurance Program
(Medicare) portion of the tier I tax. Consequently, the $300,000 cap is
no longer adequate for making computations with respect to the
financial interchange between the railroad retirement and social
security/medicare trust funds. Railroad retirement beneficiaries are
covered under Medicare by virtue of section 7(d) of the RRA.
Consequently, the Board is amending its regulations to require
employers to report gross wages, not just wages up to $300,000.
In order for the amendment increasing the amount of reportable
earnings to be effective with respect to the 1993 reports, due by March
1, 1994, the Board is publishing this rule as an interim final rule.
However, the Board does invite comments on the change.
The information collections associated with these amendments have
been approved by the Office of Management and Budget under Control
Number 3220-0132.
List of Subjects in 20 CFR Part 209
Railroad employees, Railroad retirement, Railroads.
PART 209--RAILROAD EMPLOYERS' REPORTS AND RESPONSIBILITIES
1. The authority citation for part 209 continues to read as
follows:
Authority: 45 U.S.C. 231f.
2. Section 209.12(b) is amended by revising the first sentence to
read as follows:
Sec. 209.12 Employers' gross earnings reports.
* * * * *
(b) Employers shall report for employees in the gross earnings
sample the employee's gross earnings in a year, including both taxable
and non-taxable compensation for the year. * * *
Dated: January 5, 1994.
By Authority of the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 94-935 Filed 1-13-94; 8:45 am]
BILLING CODE 7905-01-M
