[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