[Federal Register Volume 67, Number 57 (Monday, March 25, 2002)]
[Rules and Regulations]
[Pages 13567-13568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-7069]


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RAILROAD RETIREMENT BOARD

20 CFR Part 345

RIN 3220-AB52


Employers' Contributions and Contribution Reports

AGENCY: Railroad Retirement Board.

ACTION: Final rule.

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SUMMARY: The Railroad Retirement Board (Board) amends its regulations 
to permit the filing of contribution reports via the Internet. The 
Government Paperwork Elimination Act provides that Federal agencies are 
required by October 21, 2003, to provide ``for the option of the 
electronic maintenance, submission, or disclosure of information, when 
practicable as a substitute for paper''. The changes will permit the 
filing of Form DC-1, ``Employer's Quarterly Report of Contributions 
Under the Railroad Unemployment Insurance Act'' electronically.

DATES: Effective March 25, 2002.

FOR FURTHER INFORMATION CONTACT: Marguerite P. Dadabo, Assistant 
General Counsel, (312) 751-4945, TTD (312) 751-4701.

SUPPLEMENTARY INFORMATION: The amendments revise sections of part 345 
of the Board's regulations (20 CFR part 345) to permit the filing of 
employer contribution reports via the Internet. The Government 
Paperwork Elimination Act, Pub. L. 105-277 Secs. 1701-1710 (codified as 
44 U.S.C. 3504n) provides that Federal agencies are required by October 
21, 2003, to provide ``for the option of the electronic maintenance, 
submission, or disclosure of information, when practicable as a 
substitute for paper''. The amendments to part 345 will permit the 
filing of Form DC-1, ``Employer's Quarterly Report of Contributions 
Under the Railroad Unemployment Insurance Act'' electronically.
    The revision of Sec. 345.111 provides that if the DC-1 is filed 
electronically, no duplicate filing is required. The revision to 
Sec. 345.113 provides that the DC-1 may be filed electronically through 
the Board's agent. That section is further amended to provide that if 
the DC-1 is filed electronically, no further authentication is 
required. The paper Form DC-1 must be signed. However, with submission 
of the DC-1 electronically, the Board intends to use a user-ID/PIN/
password system for the submission of the form as a substitute for a 
required signature.
    Employers currently use a user-ID/PIN/password system to access 
RRBLINK and make electronic tax deposits. Form DC-1 is being added to 
the existing system. The user-ID/PIN/password system was established 
under a Memorandum of Understanding between Firstar Bank and the U.S. 
Department of the Treasury. A PIN/password system is used to access the 
pay.gov site to which the RRBLINK system will eventually migrate. The 
pay.gov site is operated by the U.S. Department of the Treasury. Such a 
system also is consistent with the guidance provided by the Department 
of Justice regarding the use of electronic processes.
    The revision to Sec. 345.114 permits the use of an electronic 
version of the DC-1 that can be accessed from the Board's financial 
agent. Section 345.115 is revised to provide that the DC-1, if filed 
electronically, may be filed with the Board's designee.
    Section 345.124 is revised to clarify that if an employer wishes to 
appeal the amount of the contribution, interest, or penalty, the 
procedure in that section is to be followed. Section 345.307 is revised 
to clarify that if the employer wishes to protest the contribution 
rate, the procedure in that section is to be followed. In addition, the 
title of the person who hears such a protest is revised due to an 
agency reorganization from the ``Director of Unemployment and Sickness 
Insurance'' to the ``Director of Assessment and Training''.
    The Board published the proposed rule on January 16, 2002 (67 FR 
2157), and invited comments by March 18, 2002. No comments were 
received. Accordingly, the proposed rule is being published as a final 
rule without change.
    The Board, with the concurrence of the Office of Management and 
Budget, has determined that this is not a significant regulatory action 
under Executive Order 12866. Therefore, no regulatory analysis is 
required. The Office of Management and Budget has approved information 
collections associated with this rule under control number 3220-0012.

List of Subjects in 20 CFR Part 345

    Electronic filing, Paperwork elimination, Railroad unemployment 
insurance, Reporting and recordkeeping requirements.

    For the reasons set out in the preamble, the Railroad Retirement 
Board amends title 20, chapter II, part 345 of the Code of Federal 
Regulations as follows:

PART 345--EMPLOYERS' CONTRIBUTIONS AND CONTRIBUTION REPORTS

    1. The authority citation for part 345 continues to read as 
follows:

    Authority: 45 U.S.C. 362(l).

    2. Section 345.111 of subpart B is revised to read as follows:


Sec. 345.111  Contribution reports.

    (a) General. (1) Except as provided in paragraph (a)(2) of this 
section, every employer shall, for each calendar quarter of each year, 
prepare a contribution report, in duplicate, on Form DC-1. If the Form 
DC-1 is filed electronically, no duplicate submission is required.
    (2) Contribution reports of employers who are required by State law 
to pay compensation on a weekly basis shall include with respect to 
such compensation all payroll weeks in which all or the major part of 
the compensation falls within the period for which the reports are 
required.
    (b) Compensation to be reported on Form DC-1. Employers shall enter 
on the employer's quarterly contribution report, prior to any additions 
or subtractions, the amount of creditable compensation appearing on 
payrolls or other disbursement documents for the corresponding quarter 
as the amount of creditable compensation from which the contribution 
payable for that quarter is to be computed.


(Approved by the Office of Management and Budget under control number 
3220-0012)


    3. Section 345.113 of subpart B is revised to read as follows:


Sec. 345.113  Execution of contribution reports.

    (a) Each contribution report on Form DC-1 shall be signed by hand 
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

[[Page 13568]]

    (3) A responsible and duly authorized member or officer having 
knowledge of its affairs if the employer is a partnership or other 
unincorporated organization.
    (b) The Form DC-1 may be filed electronically through the Board's 
authorized agent. If filed electronically, no further authentication is 
required.

    4. Section 345.114 of subpart B is revised to read as follows:


Sec. 345.114  Prescribed forms for contribution reports.

    Each employer's contribution report, together with any prescribed 
copies and supporting data, shall be filled out in accordance with the 
instructions and regulations applicable thereto. The prescribed forms 
may be obtained from or accessed by contacting the Board. An employer 
will not be excused from making a contribution report for the reason 
that no form has been furnished to such employer. Application should be 
made to the Board for the prescribed forms in ample time to have the 
contribution report prepared, verified, and filed with the Board on or 
before the due date. Contribution reports that have not been so 
prepared will not be accepted and shall not be considered filed for 
purposes of Sec. 345.115 of this part. In case the prescribed form has 
not been obtained, a statement made by the employer disclosing the 
period covered and the amount of compensation with respect to which the 
contribution is required may be accepted as a tentative contribution 
report if accompanied by the amount of contribution due. If filed 
within the prescribed time, the statements so made will relieve the 
employer from liability for any penalty imposed under this part for the 
delinquent filing of the contribution report provided that the failure 
to file a contribution report on the prescribed form was due to 
reasonable cause and not due to willful neglect, and provided further, 
that within 30 days after receipt of the tentative report, such 
tentative report is supplemented by a contribution report made on the 
proper form. (Approved by the Office of Management and Budget under 
control number 3220-0012)

    5. Section 345.115 of subpart B is revised to read as follows:


Sec. 345.115  Place and time for filing contribution reports.

    Each employer shall file its contribution report with the Chief 
Financial Officer, Railroad Retirement Board, 844 North Rush Street, 
Chicago, Illinois, 60611-2092, or the Chief Financial Officer's 
designee. The employer's contribution report for each quarterly period 
shall be filed on or before the last day of the calendar month 
following the period for which it is made. If such last day falls on 
Saturday, Sunday, or a national legal holiday, the report may be filed 
on the next following business day. If mailed, reports must be 
postmarked on or before the date on which the report is required to be 
filed.

    6. Section 345.124 of subpart B is revised to read as follows:


Sec. 345.124  Right to appeal the amount of a contribution, interest, 
or penalty.

    (a) Except as otherwise provided, an employer may seek 
administrative review of any determination with respect to any 
contribution, interest, or penalty made under this part by filing a 
request for reconsideration with the Chief Financial Officer within 30 
days after the mailing of notice of such determination. An employer 
shall have a right to appeal to the Board from any reconsideration 
decision under this section by filing notice of appeal to the Secretary 
to the Board within 14 days after the mailing of the decision on 
reconsideration. Upon receipt of a notice of an appeal, the Board may 
designate one of its officers or employees to receive evidence and 
report to the Board under the procedures set forth in part 319 of this 
chapter. An appeal of the contribution rate is made under Sec. 345.307 
of this part.
    (b) Any appeal filed under this part shall not relieve the employer 
from filing any reports or paying any contribution required under this 
part nor stay the collection thereof. Upon the request of an employer, 
the Board may relieve the employer of any obligation required under 
this part pending an appeal. Unless specifically provided by the Board, 
such relief shall not stay the accrual of interest on any disputed 
amount as provided for in Sec. 345.122 of this part.

    7. Section 345.307 of subpart D is revised to read as follows:


Sec. 345.307  Rate protest.

    (a) Request for reconsideration. An employer may appeal a 
determination of a contribution rate computed under this part by filing 
a request for reconsideration with the Director of Assessment and 
Training within 90 days after the date on which the Board notified the 
employer of its rate of contribution for the next ensuing calendar 
year. Within 45 days of the receipt of a request for reconsideration, 
the Director shall issue a decision on the protest.
    (b) Appeal to the Board. An employer aggrieved by the decision of 
the Director of Assessment and Training under paragraph (a) of this 
section may appeal to the Board. Such appeal shall be filed with the 
Secretary to the Board within 30 days after the date on which the 
Director notified the employer of the decision on reconsideration. The 
Board may decide such appeal without a hearing or, in its discretion, 
may refer the matter to a hearings officer pursuant to part 319 of this 
chapter.
    (c) Decision of the Board final. Subject to judicial review 
provided for in section 5(f) of the RUIA, the decision of the Board 
under paragraph (b) of this section is final with respect to all issues 
determined therein.
    (d) Waiver of time limits. A request for reconsideration or appeal 
under this section shall be forfeited if the request or appeal is not 
filed within the time prescribed, unless reasonable cause, as defined 
in this part, for failure to file timely is shown.
    (e) Rate pending review. Pending review of the protested rate, the 
employer shall continue to pay contributions at such rate. Any 
adjustment in the contributions paid at such rate as the result of an 
appeal shall be in accordance with Sec. 345.118 of this part.
    (f) The amount of a contribution, interest, or penalty may be 
protested in accord with Sec. 345.124 of this part.

    Dated: March 19, 2002.

    By Authority of the Board, for the Board.
Beatrice Ezerski,
Secretary to the Board.
[FR Doc. 02-7069 Filed 3-22-02; 8:45 am]
BILLING CODE 7905-01-P