Form CT-2 (Rev. 1-2020)
Page 3
Compensation is considered paid when actually paid or when
constructively paid. Constructively paid means that the pay (a)
has been credited to the employee representative’s account or
set apart with no substantial limit or condition on how or when
the payment will be made and (b) is available to draw on at any
time and to control.
Specific Instructions
If you perform services as both an employee representative and
an employee and your total pay for these services is more than
the applicable maximum (see Line 1 and Line 4, later), then for
lines 1 and 4 subtract your pay as an employee from the
maximum to determine the amount subject to the employee
representative’s tax.
Line 1. Multiply the compensation subject to Tier 1 tax by
12.4% (0.124). This tax applies only to the first $137,700 paid to
you during 2020 for services performed as an employee
representative.
Line 2. Multiply the compensation subject to Tier 1 Medicare
tax by 2.9% (0.029). This tax applies to all compensation paid
to you during 2020 for services performed as an employee
representative.
Line 3. Multiply the compensation subject to Tier 1 Additional
Medicare Tax by 0.9% (0.009). This tax applies only to
compensation that exceeds $200,000.
Line 4. Multiply the compensation subject to Tier 2 tax by
13.1% (0.131). This tax applies only to the first $102,300 paid to
you during 2020 for services performed as an employee
representative.
Line 5. Enter a credit for an overpayment of tax, penalty, or
interest you overpaid for an earlier quarter. Attach two copies of
a detailed statement explaining the credit claimed. However,
don’t include a credit for an overpayment of Additional Medicare
Tax for an earlier year. Any Additional Medicare Tax paid will be
credited against the total tax liability shown on your Form 1040,
U.S. Individual Income Tax Return, or Form 1040-SR, U.S. Tax
Return for Seniors. If you have filed Form 1040 or 1040-SR for
the earlier year, you should make a claim for refund for
Additional Medicare Tax paid using Form 1040-X, Amended
U.S. Individual Income Tax Return.
Line 6. You may pay the amount shown on line 6 using the
Electronic Federal Tax Payment System (EFTPS) or by check or
money order. To get more information about EFTPS or to enroll
in EFTPS, visit www.eftps.gov, or call 800-555-4477 or
800-733-4829 (TDD). Additional information about EFTPS is also
available in Pub. 966.
If you pay by check or money order, make it payable to
“United States Treasury.” Enter on your check or money order
your social security number (SSN), “Form CT-2,” and the
quarter (for example, “1Q 2020” for the first quarter of 2020).
Signature. You or your authorized agent must sign the
ORIGINAL copy of Form CT-2.
Name, address, etc. Type or print your name, address, SSN,
and the name of the labor organization for which you perform
services.
Return for calendar quarter. Enter the months of the quarter
and the year of the return. For example, show the first quarter of
2020 as “Jan., Feb., Mar. 2020.”
Paid preparer. A paid preparer must sign Form CT-2 and
provide the information in the Paid Preparer Use Only section if
the preparer was paid to prepare Form CT-2 and isn’t an
employee of the filing entity. Paid preparers must sign paper
returns with a manual signature. The preparer must give you the
original return and duplicate copy to be filed with the IRS and
another copy of the return for your records.
If you’re a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided. Include your
complete address. If you work for a firm, write the firm’s name
and the EIN of the firm. You can apply for a PTIN online or by
filing Form W-12. For more information about applying for a
PTIN online, go to www.irs.gov/PTIN. You can’t use your PTIN
in place of the EIN of the tax preparation firm.
Privacy Act and Paperwork Reduction Act Notice. We ask for
the information on Form CT-2 to carry out the Internal Revenue
laws of the United States. We need it to figure and collect the
right amount of tax. Section 3211 and section 6011 and their
regulations require employee representatives to report and pay
over to the IRS railroad retirement taxes (Tier 1, Tier 2, Tier 1
Medicare tax, and Additional Medicare Tax). Form CT-2 is used
to determine the amount of such taxes that you owe. Section
6109 requires you to provide your identification numbers. If you
fail to provide this information in a timely manner, or provide
false or fraudulent information, you may be subject to penalties.
You’re not required to provide the information requested on a
form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books and records
relating to a form or its instructions must be retained as long as
their contents may become material in the administration of any
Internal Revenue law.
Generally, tax returns and return information are confidential,
as required by section 6103. However, section 6103 allows or
requires the IRS to disclose or give the information shown on
your tax return to others as described in the Code. For example,
we disclose your tax information to the Railroad Retirement
Board for use in administering the Railroad Retirement Act, and
we may disclose your tax information to the Department of
Justice for civil and criminal litigation, and to cities, states, the
District of Columbia, and U.S. commonwealths and possessions
for use in administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal and
state agencies to enforce federal nontax criminal laws, or to
federal law enforcement agencies and intelligence agencies to
combat terrorism.
The time needed to complete and file Form CT-2 will vary
depending on individual circumstances. The estimated average
time is: Recordkeeping, 13 min.; Learning about the law or
the form, 13 min.; Preparing the form, 26 min.; Copying,
assembling, and sending the form to the IRS, 16 min.
If you have comments concerning the accuracy of these time
estimates or suggestions for making Form CT-2 simpler, we
would be happy to hear from you. You can send us comments
from www.irs.gov/FormComments. You may also mail your
comments to Internal Revenue Service, Tax Forms and
Publications Division, 1111 Constitution Ave. NW, IR-6526,
Washington, DC 20224. Don’t send Form CT-2 to this address.
Instead, see Where To File, earlier.