Chief Information Officer for Policy and Compliance, Railroad Retirement
Board, 844 N. Rush St., Chicago, IL 60611-1275.
EMPLOYER’S CONTRIBUTIONS AND CONTRIBUTION REPORTS
General requirements – Every e mployer u n der the Railroad
Unemployment Insurance Act is required to pay a contribution equal to a
percentage of the compensation earned by any employee. All employers
are notified annually of the contribution rate with Form ID-40r, Annual Notice
to Employer - RUI Act, in October. The monthly compensation base is
established every November via a separate notice.
Reporting requirements – Every employer must file a report and pay
contributions for each calendar quarter in which compensation is earned by
one or more employees.
The report for each quarter must be filed and the contributions must be paid
on or before the due date shown below:
QUARTER ENDED DUE ON OR BEFORE
March 31 April 30
June 30 July 31
September 30 October 31
December 31 January 31
If the due date falls on Saturday, Sunday, or a national legal holiday, the
report must be filed and the payment made on or before the next following
business day. The report must be postmarked on or before the date on
which the report is required to be filed. Payments by electronic medium
must be effective on or before the date on which the DC -1 report is
required to be filed.
Penalties – For failure to file a report on or before the date on which it is
due, section 345 of the regulations provides a penalty of five to twenty-five
percent of the contribution, depending upon the duration of the delinquency,
unless the employer establishes to the satisfaction of the Railroad
Retirement Board (RRB) that a reasonable cause exists for the delinquency.
Interest – If any contribution is not paid when due, interest will accrue
thereon at the rate of one percent per month or fraction of a month from the
date on which it became due until it is paid. A fractional part of the month
will be treated the same as a full month, e.g. a contribution postmarked one
day after the due date will be assessed a full month’s interest.
Records – Every employer under the Railroad Unemployment Insurance Act
must keep accurate records containing sufficient information to enable the
RRB to determine whether the contributions have been correctly computed
and paid. Such records shall be maintained for a period of at least five years
after the date the contribution to which they relate becomes due or the date
the contribution is paid, whichever is later, and shall be open at all times to
the inspection of the RRB or any of its officers or employees.
COMPLETING FORM DC-1
Identifying Information – Enter the employer number used in reporting
compensation to the RRB’s Chief of Compensation and Employer Services
Center, the calendar quarter and year covered, and the full name and
address of the employer. If future reports are not required please check
“FINAL REPORT.” Also check the box to indicate method of payment.
Item 1 – Current reporting period – No entry required in columns (a)
an d (b ) . En te r in c olu mn ( c ) t he t o tal c om p en s at ion s ub jec t to
co n tr i bu t io n f or t h e cur re n t rep or t in g p er i od , i n co l um n ( d ) t he
contribution rate indicated in the annual not ice and in column (e) the
amount of contribution due.
Item 2 – Compensation Adjustments – Enter in column (a) the month
in d ic ate d o n Fo r m BA - 4 , Re p or t o f Cre di t a bl e C om p en sa t io n
Adjustments. Enter in column (b) the calendar year which was adjusted
by the Form BA - 4 (a BA - 4 that adjusts more than 1 calendar year
requires a separate line for each year). Enter in column (c ) on the
appropriate line the amount of the net increase or decrease resulting
from compensation adjustments applicable to prior periods as reported
on the Form BA- 4 filed during the period covered by the report. The entry
is to be made in the space provided for the period affected by the
adjustment. Enter in column (d) the contribution rate applicable (8.0%)
for years from 1/1/1981 through 12/31/1990; see section 345 of the
RRB’s regulation for years prior to 1981. Enter in column (e) the amount
of contributions due.
If any amount is a decrease, it should be noted by inserting the letter “D”
after the amount.
Item 3 – Total – Enter the total of the compensation amounts shown for
items 1 and 2 in column (c) and the total of the contribution amounts in
column (e). The total compensation reported on line 3 for the four
quarters of each year should be the same as the total compensation
reported on Forms BA- 3, Annual Report of Creditable Compensation,
and BA- 4 to the
Chief of Compensation and Employer Services Center
.
If they do not agree, please attach a statement that explains the
reason(s) for the difference in total compensation reported here and
separately reported t o the
Chief of Co mpensation and Emplo yer
Services Center
. The total compensation to be listed on this contribution
report is to be derived from payrolls or other disbursement documents
for an appropriate quarter.
Item 4 – Corr e ction to prio r F orms DC-1 – E n t er correcti o n s,
underpayments or overpayments of contribution not involving BA - 4
adjustments applicable to prior compensation reports. On line 1 in column
(a) enter the calendar quarter and year of the Form DC -1 which requires
correction. Enter in column (b) the calendar year adjusted. Entries in
columns (c) through (e) should be the same information as indicated on
Form DC-1 to be corrected. Enter on line 2 in columns (c) through (e), the
correct information. Additional corrections to Forms DC -1 should be
documented on an attachment in the same format as the first correction.
On line 3 of columns (c) and (e) the net correction total is entered.
Item 5 – Total – Add columns (c) and (e) of item 3 and line 3 of item 4
and enter the totals.
Items 6a & b – Interest/penalties – Indicate the quarter and year
applicable in item 6a. Enter the amount of interest/penalties in item 6b.
Item 7 – Report Total – Enter the total amount of the remittance required
by this report. Add the amounts shown in items 5e and 6b.
Item 8 – Amount of Remittance – Enter, in column (e), the total amount
remitted for this report. It should be the amount shown in item 7.
Item 9 – Enter the name and telephone number of the individual preparing
the form.
Signature –
Each report must be signed by (1) the individual if the
employer is an individual, (2) the president, vice president, or other duly
authorized officer if the employer is a corporation, or (3) a responsible or
duly authorized member or officer having knowledge of its affairs, if the
employer is a partnership or other incorporated organization. The title of
the officer must be indicated as well as the date signed.
