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whole or in part, from the compensation of ing percentages of the amount of comemployees in the employer's employ. I a
pensation paid to any employee for emcontribution required by this Act is not
ployment on and after July 1, 1939: paid when due, there shall be added to the amount payable (except in the case of ad
Percent justments made in accordance with the pro
(1) July 1, 1989 through Dec. 31, 1947.-- 3 visions of this Act) Interest at the rate of 1 (2) Jan. 1, 1948 through Dec. 31, 1955.. % 1⁄2 per centum per month or fraction of a month (3) Jan. 1, 1956 through Dec. 81, 1956... 14 from the date the contribution became due (4) Jan. 1, 1957 through Dec. 31, 1957... 2 until paid. Any interest collected pursuant
(5) Jan. 1, 1968 through Dec. 31, 1968. 242 to this subsection shall be credited to the (6) Jan. 1, 1959 through May 31, 1959. 3 account. (Section 8(g) of the Railroad Un- (7) June 1, 1969 through Dec. 31, 1961. 834 employment Insurance Act.)
(8) Jan. 1, 1962 through Dec. 81, 1968.. All provisions of law, including penalties,
(9) Each succeeding calendar year, the applicable with respect to any tax imposed
applicable percentage specified in by the provisions of the Railroad Retirement
$ 845.1 of these regulations. Tax Act, insofar as applicable and not in- (b) If compensation is paid by more consistent with the provisions of this Act, than one employer to an employee with shall be applicable with respect to the con
respect to employment during the same tributions required by this Act: Provided, That all authority and functions conferred
calendar month, and if the aggregate by or pursuant to such provisions upon any
compensation paid to such employee by oficer or employee of the United States, ex
all employers is more than $400 for the cept the authority to institute and prosecute, calendar month, then there shall be inand the function of instituting and prose- cluded in the measure of each such emcuting, criminal proceedings, shall, with re- ployer's contribution only that proporspect to such contributions, be vested in and
tion of $400 which the amount paid by exercised by the Board or such officers and
him to the employee for the month bears employees of the Board as it may designate therefor. (Sec. 8(b) of the Railroad Unem
to the aggregate compensation paid to ployment Insurance Act.)
such employee by all employers for that ... For the purposes of determining
month: Provided, however, the amount of contributions due pursuant
(1) If such aggregate compensation is to this Act, employment after June 30, 1940, paid by two or more employers, only one in the service of a local lodge or division of of whom is an employer other than a a railway-labor-organization employer or as subordinate unit of a national railwayan employee representative shall be disre
labor-organization employer, and if the garded. For purposes of determining the amount of contributions due pursuant
compensation paid to the employee by to this Act, employment as a delegate to a
the employer other than a subordinate national or international convention of a
unit equals or exceeds $400 for the railway labor organization defined as an month, then no subordinate unit shall "employer" shall be disregarded if the be liable for any contribution with reindividual having such employment has not spect to the compensation paid by it to previously rendered service, other than as such employee for that month, and the such a delegate, which may be included in measure of the contribution of the embis "years of service" for the purposes of the ployer other than a subordinate unit Railroad Retirement Act. (Section 1(8) of with respect to the compensation paid the Railroad Unemployment Insurance Act.) by him to such employee for that month (Board Order 59–219, 24 F.R. 10199, Dec. 17, shall be $400. 1959, as amended by Board Order 62–17, 27 (2) If such aggregate compensation is F.R. 1416, Feb. 15, 1962; Board Order 63–198,
paid by two or more employers other 28 F.R. 13360, Dec. 10, 1963; Board Order 66–
than a subordinate unit of a national 181, 31 F.R. 16265, Dec. 20, 1966)
railway-labor-organization employer, § 345.2 Employers' contributions. and by one or more subordinate units of The $400 specified in this section is
national railway-labor-organization the maximum compensation per em
employer, and if the total compensation ployee per month subject to contribu
paid to the employee by the employers tions after May 31, 1959, with respect
other than a subordinate unit equals or
exceeds $400 for the month, then no subto services rendered after that date.
ordinate unit shall be liable for any conMaximum compensation amounts sub
tribution with respect to the compenject to contributions, and allocations, for sation paid by it to such employee for prior periods are shown in § 345.1.
that month, and the measure of the con(a) Except as provided in paragraph tribution of each employer other than a (b) of this section, every employer shall
subordinate unit shall be that proportion pay a contribution equal to the follow- of $400 which the compensation paid by
such employer to the employee for the punched tabulating cards or magnetic month bears to the total compensation tape in lieu thereof), paid to such employee by all such em- (b) A monthly report of compensaployers, other than a subordinate unit tion adjustments, on Form BA-4, for that month.
(c) A summary of compensation ad(3) If such aggregate compensation is justments reported for the quarter, on paid by two or more employers, only one Form BA-5 and of whom is a subordinate unit of a na- (d) A summary report of compensational railway-labor-organization em- tion for the calendar year, on Form ployer, and if the total compensation BA-5. paid to the employee by all employers (Board Order 66–123, 81 FR. 16288, Dec. 6, other than the subordinate unit is less 1966) than $400 for the month, then the meas- & 345.5 Employers' contribution ure of the contribution of each em
ports. ployer other than the subordinate unit
(a) General. (1) Except as provided shall be the full amount of compensa
in subparagraph (2) of this paragraph, tion paid by him to such employee for
every employer shall, for the period that mo th, and the measure of the con
of three calendar months ending Septribution of the subordinate unit of a
tember 30, 1939, and for each subsenational railway-labor-organization em
quent period of three calendar months ployer shall be $400 less the total com
ending December 31, March 31, June 30 pensation paid to such employee for that
and September 30, respectively, of each month by all other employers.
year, prepare a contribution report, ip (4) If such aggregate compensation
duplicate, on Form DC-1. is paid by one or more employers other
(2) (i) If an employer was covered by than a subordinate unit of a national
the Act during an entire calendar year, railway - labor - organization employer
and if the creditable compensation reand by two or more subordinate units of
ported during such year, multiplied by national railway-labor-organization
the contribution rate for the following employer, and if the total compensation
year produces an amount of less than paid to the employee by all employers
$100, the employer may elect to make a other than the subordinate units is less
single contribution report for such folthan $400 for the month, then the meas
lowing year. ure of the contribution of each employer
(ii) Except as otherwise provided by other than the subordinate units shall
agreement with the Board, each embe the full amount of compensation paid
ployer is required to file a separate by him to such employee for that month, and the measure of the contribution of
contribution report, and consolidated each subordinate unit of the national
contribution reports of parent and subrailway - labor - organization employer
sidiary corporations are not permitted
(ul) Contribution reports of employshall be that proportion of $400 less the total compensation paid to such em
ers who are required by State laws to ployee for the month by all employers
pay compensation on a weekly basis shall other than the subordinate units which
include with respect to such compensathe compensation paid by such subordi
tion all pay roll weeks in which all or the nate unit to the employee for that month
major part of the compensation falls bears to the total compensation paid to
within the period for which the reports such employee by all such subordinate
are required. units for that month.
(b) Compensation to be reported on (Board Order 59–219, 24 F.R. 10199, Dec. 17,
Form DC-1 for employers required to 1959, as amended by Board Order 62–17, 27
pay contributions quarterly. Employers F.R. 1416, Feb. 15, 1962)
shall enter on the employer's quarterly 8 345.4 Employers' reports of compen
contribution report, prior to any addisation of employees.
tions or subtractions, the amount of
creditable conpensation appearing on Each employer shall continue to file payrolls or other disbursement docuwith the Board, in accordance with the ments for the corresponding quarter as requirements of $ 250.3 of this chapter, the amount of creditable compensation as amended, reports of the compensa- from which the contribution payable for tion of each employee, consisting of: that quarter is to be computed.
(a) A report of compensation for the (c) Compensation to be reported on calendar year on Form BA-3a (or Form DC-1 for employers qualified to
pay contributions annually. If an em- Board. An employer will not be excused ployer is qualified and has elected to pay from making a contribution report for contributions annually, the total credit- the reason that no form has been furnable compensation reported on Form Ished to such employer. Application BA-5, prior to any additions or sub- should be made to the Board for the tractions, shall be entered on the em- prescribed forms in ample time to have ployer's annual contribution report for the contribution report prepared, verithe corresponding calendar year as the fied, and filed with the Board on or beamount of creditable compensation from fore the due date. Contribution reports which the contribution payable for that shall be carefully prepared so as to set calendar year is to be computed.
forth fully and clearly the data called for (Board Order 52-61, 17 F.R. 2303, Mar. 18, therein. Contribution reports which 1962, as amended by Board Order 55-826, 20 have not been so prepared will not be F.R. 9009, Dec. 8, 1955; Board Order 66–123,
accepted, and the submission thereof 31 F.R. 15239, Dec. 6, 1966)
shall have no effect whatever. In case § 345.6 Final employers' contribution the prescribed form has not been obreports.
tained, a statement made by the emUpon termination of employer status,
ployer disclosing the period covered and
the amount of compensation with redetermined under 88 202.11 and
spect to which the contribution is re202.12 of this chapter, the last contribution report of the employer on Form
quired may be accepted as a tentative
contribution report if accompanied by DC-1 shall be marked "Final contribu
the amount of contribution due. If filed tion report.” Such contribution report
within the prescribed time the statements shall be filed with the Board on or before
so made will relieve the employer from the sixtieth day after the final date for which there is paid compensation with
liability for the penalty imposed for the
delinquent filing of the contribution rerespect to which contribution is re
port: Provided, That the failure to file quired. The period covered by each such
a contribution report on the prescribed contribution report shall be plainly
form is not attributable to the fault of written thereon, indicating the final date
the employer: And provided further, for which compensation is paid.
That without unnecessary delay such There shall bc executed as part of each
tentative report is supplemented by a such final contribution report a state
contribution report made on the proper ment giving the address at which com
form. pensation records will be kept and the
(Board Order 47–128, 12 F.R. 2329, Apr. 9. name of the person keeping the records.
1947] (Board Order 47–128, 12 F.R. 2829, Apr. 9, 1047]
8 345.9 Place and time for filing em
ployers' contribution reports. § 345.7 Execution of employers' contribution reports.
Each employer's contribution report
shall be filed ith the Director of Budget Each contribution report on Form
and Fiscal Operations, Railroad RetireDC-1 shall be signed by (a) the individ
ment Board, 844 Rush Street, Chicago ual, if the employer is an individual; (b)
11, Illinois. the president, vice president, or other
(a) Except as provided in paragraph duly authorized officer, if the employer is
(b) of this section, the employer's cona corporation; or (c) a responsible and
tribution report for each quarterly peduly authorized member or officer hav
riod shall be filed on or before the last ing knowledge of its affairs if the em
day of the second calendar month folployer is a partnership or other unincor
lowing the period for which it is made. porated organization.
If such last day falls on Saturday, Sun(Board Order 54-253, 19 F.R. 7265, Nov. 9,
day, or a national legal holiday, the re1954)
port may be filed on the next following 8 345.8 Prescribed forms for employ- business day. If mailed, reports must be ers' contribution reports.
postmarked on or before the date on Each employer's contribution report,
which the report is required to be filed. together with any prescribed copies and
(b) For eligible employers who have supporting data, shall be filled out in elected to report contributions annually accordance with the instructions and in accordance with 8 345.5(a) (2), the regulations applicable thereto. The pre- contribution report shall be filed on or scribed forms may be obtained from the before the last day of the second calen
dar month following the close of the calendar year. I such last day falls on Saturday, Sunday, or a national legal holiday, the report may be filed on the next following business day. I malled, reports must be postmarked on or before the date on which the report is required to be filed.
(c) If there is a delay in the filing of a contribution report, the Director of Budget and Fiscal Operations may set a later date for filing, if, in his judgment, (1) the delay is due to reasonable cause, (2) the amount of interest payable for the delinquency represents a charge totally disproportionate to the period of delay and, (3) the employer's previous record for submission of reports warrants such action. (Board Order 59–219, 24 F.R. 10200, Dec. 17, 1959) 8 345.10 Payment of employers' contri
butions. (a) The contribution required to be reported on an employer's contribution report is due and payable to the Board without assessment or notice, at the time fixed for filing the contribution report.
(b) Certified or uncertified checks may be tendered as provisional payment of contributions and should be made payable to the Railroad Retirement Board and mailed with the contribution report to the Director of Budget and Fiscal Operations, Railroad Retirement Board, 844 Rush Street, Chicago 11, Illinois. No employer who tenders a check as provisional payment of contribution shall be released from the obligation to make ultimate payment thereof until such check has been duly paid. If a check is not paid by the bank on which it is drawn, the employer by whom such check has been tendered shall remain liable for the payment of the contribution and for all legal penalties and additions to the same extent as if such check had not been tendered. (Board Order 69-219, 24 F.R. 10200, Dec. 17, 1959) $ 345.11 When fractional part of cent
may be disregarded. In the payment of employers' contributions to the Board a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to 1 cent. [Board Order 39-864, 4 F.R. 4372, Oct. 26, 1999]
& 345.12 Adjustments.
(a) In generalSection 8(d) of the act provides that I more or less than the correct amount of employer's contribution is paid with respect to any compensation, proper adjustments with respect to the contribution shall be made, without interest, in subsequent contribution payments by the same employer, under regulations prescribed by the Board.
(b) Compensation adjustment. A compensation adjustment is the amount of any adjustment reported by an employer on Form BA-4 of the compensation of an individual employee.
(c) Adjustment of contributions. (1) For employers reporting contributions quarterly, all adjustments of contributions based on compensation adjustments shall be accounted for by the employer on the contribution report for the same quarter in which the Form BA-4 reflecting the compensation adjustments is filed with the Board.
(2) For employers reporting contributions annually, the aggregate total of all adjustments of contributions based on compensation adjustments shall be accounted for by the employer on the contribution report for the same calendar year in which Forms BA-4 reflecting the compensation adjustments are filed with the Board.
(3) If less than the correct amount of contributions is paid for any previous calendar quarter or calendar year because of an error that does not constitute a compensation adjustment as defined in paragraph (b) of this section, the employer shall adjust the error by (1) reporting the additional amount due and payable by reason of the underpayment as additional contribution on his next report filed after discovery of the error and (ii) paying the amount thereof to the Board at the time such report is filed.
If more than the correct amount of contributions is paid for any previous calendar quarter or calendar year because of an error that does not constitute a compensation adjustment as defined in paragraph (b) of this section, the employer shall adjust the error by applying the excess payment as a credit against the contribution due on his next report filed after discovery of the error.
(d) Limitations on adjustments. No overpayment shall be adjusted under this section after the expiration of 3 years from the time the contribution report was required to be filed or 2 years from
the time the contribution was paid, lish the legal authority of the iduciary whichever of such periods expires the need not accompany the claim, provided later, or if no contribution report was a statement is made in the claim showing filed, 2 years from the time the contribu- that the contribution was paid by the tion was paid. No underpayment shall fiduciary and that he is still acting. In be adjusted under this section after the such cases, if a refund or interest is to receipt from the Board of formal notice be paid, letters testamentary, letters of and demand for payment based upon an administration, or other evidence may be assessment, but the entire amount as- required to be submitted upon the resessed shall be paid to the Board pur- ceipt of a specific request therefor. I a suant to such notice and demand.
claim is filed by a fiduciary or employer (Board Order 62–61, 17 F.R. 2806, Mar. 18, other than the one by whom the con1962, as amended by Board Order 60–114, 26 tribution was paid, the necessary docuF.R. 7486, Aug. 9, 1960]
mentary evidence shall accompany the § 345.13 Refunds.
claim. The claim form may be executed
by an agent of the employer on whose (a) In general. Section 8(e) of the
behalf the claim is made, but in such act provides that if more than the cor
case a power of attorney shall accompany rect amount of the employer's contribu
the claim. tion is paid with respect to any com
(e) Time limit. No refund shall be pensation and the overpayment cannot
allowed after the expiration of 3 years be adjusted, the amount of the over
from the time the contribution report payment shall be refunded in such man
was required to be filled or 2 years from ner and at such times (subject to the
the time the contribution was paid, statute of limitations properly applicable
whichever of such periods expires the thereto) as may be prescribed by regu
later, or if no contribution report was lations of the Board.
filled, 2 years from the time the contribu(b) When permitted. A claim for re
tion was paid. fund may be made only when the over
(Board Order 89-664, 4 FR. 4872, Oct. 26, payments cannot be adjusted in accord
1999, as amended by Board Order 61-264, 16 ance with the procedure set forth in
F.R. 8797, Aug. 80, 1951; Board Order 54-258, 8 345.12.
19 F.R. 7265, Nov. 9, 196 %; Board Order 60–114, (c) Form of claim. A claim for refund 26 F.R. 7486, Aug. 9, 1960) shall be made on Form DC-3 in accordance with the instructions and regula- 8 345.14 Assessment and collection of tions applicable thereto. The prescribed
contributions or underpayments of form may be obtained from the Board. contributions. There shall be set forth all grounds in (a) If any employer's contribution is detail and all facts alleged in support not paid to the Board when due or is not of the claim, including the amount and paid in full when due, the Board may, date of each payment to the Board of as the circumstances warrant, assess the the contribution for which refund is contribution or the deficiency and in
laimed, the name and address of the terest and penalty, if any (whether or employer who paid the contribution to not the deficiency is adjustable as an the Board, and the period covered by underpayment). the contribution report on which such (b) The amount of any such assesscontribution was reported.
ment will be collected, in accordance (d) Claim by fiduciary. If any con- with the applicable provisions of law. tribution is paid by or on behalf of an If any employer liable to pay any conindividual who thereafter dies and a tribution neglects or refuses to pay the claim for refund or credit is filed by a same within ten days after notice and legal representative of the deceased, cer- demand, the Board may collect such tified copies of the letters testamentary, contribution with such interest and letters of administration, or other similar other additional amounts as are required evidence shall be annexed to the claim, by law, by distraint and sale in the to show the authority of the executor, manner provided by law. administrator, or other fiduciary by (Board Order 62–17, 27 FR. 1416, Feb. 16, whom the claim is filed. If an executor, 1962) administrator, guardian, trustee, receiver, or other fiduciary pays any con
$ 345.15 Jeopardy assessment. tribution and thereafter a claim for
(a) Whenever in the opinion of the refund or credit is filed by the same fidu
Board it becomes necessary to protect ciary, documentary evidence to estab- the interests of the Government by ei,