there is reason to believe future collection action may be productive or collection may be effected by offset in the near future.

(b) Collection action may be terminated when:

(1) The debtor is unable to make any substantial payment;

(2) The debtor cannot be located and offset is too remote to justify retention of the claim;

(3) The cost of collection action will exceed the amount recoverable;

(4) The claim is legally without merit or cannot be substantiated by the evidence.

pensation as is not in excess of $300 for any calendar month paid by him to any employ. ee for services rendered to him after June 30, 1939, and before July 1, 1954, and is not in excess of $350 for any calendar month paid by him to any employee for services rendered to him after June 30, 1954, and before June 1, 1959, and is not in excess of $400 for any calendar month paid by him to any employee for services rendered to him after May 31, 1959: Provided, however, That if compensation is paid to an employee by more than one employer with respect to any such calendar month, the contributions required by this subsection shall apply to not more than $300 for any month before July 1, 1954, and to not more than $350 for any month after June 30, 1954, and before June 1, 1959, and to not more than $400 for any month after May 31, 1959, of the aggregate compensation paid to said employee by all said employers with respect to such calendar month, and each employer other than a subordinate unit of a national railway-labororganization employer shall be liable for that proportion of the contribution with respect to such compensation paid by all such employers which the compensation paid by him after December 31, 1940, to the employee for services during any calendar month after 1946 bears to the total compensation paid by all such employers after December 31, 1946, to such employee for services rendered during such month; and in the event that the compensation so paid by such employers to the employee for services rendered during such month is less than $300 if such month is before July 1, 1954, or less than $350 if such month is after June 30, 1954, and before June 1, 1959, or less than $400 if such month is after May 31, 1959, each subordinate unit of a national railwaylabor-organization employer shall be liable for such proportion of any additional contribution as the compensation paid by such employer after December 31, 1946, to such employee for services rendered during such month bears to the total compensation paid by all such employers after December 31, 1946, to such employee for services rendered during such month:

If the balance to the credit of the railroad unemployment insurance account as of the close of business on Sept. 30, of any year, as determined by the Board:

As soon as practicable following the enactment of this Act, the Board shall determine and proclaim the balance to the credit of the account as of the close of business on September 30, 1947, and on or before December 31 of 1948 and of each succeeding year, the Board shall determine and proclaim the balance to the credit of the account as of the close of business on September 30 of such year; and in determining such balance as of September 30 of any year, the balance to the credit of the railroad unemployment insurance administration fund as of the close of business on such date shall be deemed to be a part of the balance to the credit of such account. (Section 8(a) of the Railroad Unemployment Insurance Act.)

Notwithstanding the provisions of section 8(a)2 of the Railroad Unemployment Insurance Act, the rate of contribution required to be paid under the Railroad Unemployment Insurance Act by every employer as defined in such Act shall be 4 per centum with respect to compensation as defined in such Act, paid after December 31, 1961, and before January 1, 1964. (Section 5 of the Temporary Extended Railroad Unemployment Benefits Act of 1961.)

The contributions required by this Act shall be collected and paid quarterly or at such other times and in such manner and under such conditions not inconsistent with this Act as may be prescribed by Regulations of the Board, and shall not be deducted, in whole or in part, from the compensation of employees in the employer's employ. If a contribution required by this Act is not paid when due, there shall be added to the amount payable (except in the case of adjustments made in accordance with the provisions of this Act) interest at the rate of 1 per centum per month or fraction of a month from the date the contribution became due until paid. Any interest collected pursuant to this subsection shall be credited to the account. (Section 8(g) of the Railroad Unemployment Insurance Act.)

All provisions of law, including penalties, applicable with respect to any tax imposed by the provisions of the Railroad Retirement Tax Act, insofar as applicable and not inconsistent with the provisions of this Act, shall be applicable with respect to the contributions required by this Act: Provided, That all authority and functions conferred by or pursuant to such provisions upon any officer or employee of the United States, except the authority to institute and prosecute, and the function of instituting and prosecuting, criminal proceedings, shall, with respect to such contributions, be vested in and exercised by the Board or such officers and employees of the Board as it may designate therefor. (Sec. 8(h) of the Railroad Unemployment Insurance Act.)

For the purposes of determining the amount of contributions due pur

suant to this Act, employment after June 30, 1940, in the service of a local lodge or division of a railway-labor-organization employer or as an employee representative shall be disregarded. For purposes of determining the amount of contributions

due pursuant to this Act, employment as a delegate to a national or international convention of a railway labor organization defined as an "employer" ⚫ shall be disregarded if the individual having such employment has not previously rendered service, other than as such a delegate, which may be included in his "years of service" for the purposes of the Railroad Retirement Act.

(Section 1(g) of the Railroad Unemployment Insurance Act.)

[Board Order 59-219, 24 FR 10199, Dec. 17, 1959, as amended by Board Order 62-17, 27 FR 1415, Feb. 15, 1962; Board Order 63-198, 28 FR 13360, Dec. 10, 1963; Board Order 66131, 31 FR 16265, Dec. 20, 1966; 41 FR 17538, Apr. 27, 1976]

§ 345.2 Employers' contributions.

The $400 specified in this section is the maximum compensation per employee per month subject to contributions after May 31, 1959, with respect to services rendered after that date. Maximum compensation amounts subject to contributions, and allocations, for prior periods are shown in § 345.1.

(a) Except as provided in paragraph (b) of this section, every employer shall pay a contribution equal to the following percentages of the amount of compensation paid to any employee for employment on and after July 1, 1939:

(1) July 1, 1939 through Dec. 31, 1947. (2) Jan. 1, 1948 through Dec. 31, 1955. (3) Jan. 1, 1956 through Dec. 31, 1956. (4) Jan. 1, 1957 through Dec. 31, 1957. (5) Jan. 1, 1958 through Dec. 31, 1958. (6) Jan. 1, 1959 through May 31, 1959. (7) June 1, 1959 through Dec. 31, 1961 (8) Jan. 1, 1962 through Dec. 31, 1975. (9) Jan. 1, 1976 through Dec. 31, 1976. (10) Jan. 1, 1977 through Dec. 31, 1977 (11) Each succeeding calendar year, the applicable percentage specified in § 345.1.

Percent

3

1/2

1/2

2

212 3

34

4

51/2 8

(b) If compensation is paid by more than one employer to an employee with respect to employment during the same calendar month, and if the aggregate compensation paid to such employee by all employers is more than $400 for the calendar month, then there shall be included in the measure of each such employer's con

tribution only that proportion of $400 which the amount paid by him to the employee for the month bears to the aggregate compensation paid to such employee by all employers for that month: Provided, however,

(1) If such aggregate compensation is paid by two or more employers, only one of whom is an employer other than a subordinate unit of a national railway-labor-organization employer,

and if the compensation paid to the employee by the employer other than a subordinate unit equals or exceeds $400 for the month, then no subordinate unit shall be liable for any contribution with respect to the compensation paid by it to such employee for that month, and the measure of the contribution of the employer other than a subordinate unit with respect to the compensation paid by him to such employee for that month shall be $400.

(2) If such aggregate compensation is paid by two or more employers other than a subordinate unit of a national railway-labor-organization employer, and by one or more subordinate units of a national railway-labororganization employer, and if the total compensation paid to the employee by the employers other than a subordinate unit equals or exceeds $400 for the month, then no subordinate unit shall be liable for any contribution with respect to the compensation paid by it to such employee for that month, and the measure of the contribution of each employer other than a subordinate unit shall be that proportion of $400 which the compensation paid by such employer to the employee for the month bears to the total compensation paid to such employee by all such employers other than a subordinate unit for that month.

(3) If such aggregate compensation is paid by two or more employers, only one of whom is a subordinate unit of a national railway-labor-organization employer, and if the total compensation paid to the employee by all employers other than the subordinate unit is less than $400 for the month, then the measure of the contribution of each employer other than the subordinate unit shall be the full amount of compensation paid by him to such

employee for that month, and the measure of the contribution of the subordinate unit of a national railwaylabor-organization employer shall be $400 less the total compensation paid to such employee for that month by all other employers.

(4) If such aggregate compensation is paid by one or more employers other than a subordinate unit of a national railway-labor-organization employer and by two or more subordinate units of a national railway-labor-organization employer, and if the total compensation paid to the employee by all employers other than the subordinate units is less than $400 for the month, then the measure of the contribution of each employer other than the subordinate units shall be the full amount of compensation paid by him to such employee for that month, and the measure of the contribution of each subordinate unit of the national railway-labor-organization employer

shall be that proportion of $400 less the total compensation paid to such employee for the month by all employers other than the subordinate units which the compensation paid by such subordinate unit to the employee for that month bears to the total compensation paid to such employee by all such subordinate units for that month.

[Board Order 59-219, 24 FR 10199, Dec. 17, 1959, as amended by Board Order 62-17, 27 FR 1416, Feb. 15, 1962; 41 FR 17537, Apr. 27, 1976; 41 FR 53475, Dec. 7, 1976]

§ 345.4 Employers' reports of compensation of employees.

Each employer shall continue to file with the Board, in accordance with the requirements of § 250.3 of this chapter, as amended, reports of the compensation of each employee, consisting of:

(a) A report of compensation for the calendar year on Form BA-3a (or punched tabulating cards or magnetic tape in lieu thereof),

(b) A monthly report of compensation adjustments, on Form BA-4,

(c) A summary of compensation adjustments reported for the quarter, on Form BA-5 and

(d) A summary report of compensation for the calendar year, on Form BA-5.

[Board Order 66-123, 31 FR 15238, Dec. 6, 1966]

$345.5 Employers' contribution reports.

(a) General. (1) Except as provided in paragraph (a)(2) of this section, every employer shall, for the period of three calendar months ending September 30, 1939, and for each subsequent period of three calendar months ending December 31, March 31, June 30 and September 30, respectively, of

each year, prepare a contribution

report, in duplicate, on Form DC-1.

(2)(i) If an employer was covered by the Act during an entire calendar year, and if the creditable compensation reported during such year, multiplied by the contribution rate for the following year produces an amount of less than $100, the employer may elect to make a single contribution report for such following year.

(ii) Except as otherwise provided by agreement with the Board, each employer is required to file a separate contribution report, and consolidated contribution reports of parent and subsidiary corporations are not permitted.

(iii) Contribution reports of employers who are required by State laws to pay compensation on a weekly basis shall include with respect to such compensation all pay roll 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 for employers required to pay contributions quarterly. 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.

(c) Compensation to be reported on Form DC-1 for employers qualified to pay contributions annually. If an employer is qualified and has elected to pay contributions annually, the total

creditable compensation reported on Form BA-5, prior to any additions or subtractions, shall be entered on the employer's annual contribution report for the corresponding calendar year as the amount of creditable compensation from which the contribution payable for that calendar year is to be computed.

[Board Order 52-61, 17 FR 2303, Mar. 18, 1952, as amended by Board Order 55-325, 20 FR 9009, Dec. 8, 1955; Board Order 66-123, 31 FR 15239, Dec. 6, 1966]

§ 345.6 Final employers' contribution reports.

Upon termination of employer status, as determined under §§ 202.11 and 202.12 of this chapter, the last contribution report of the employer on Form DC-1 shall be marked "Final contribution report." Such contribution report shall be filed with the Board on or before the sixtieth day after the final date for which there is paid compensation with respect to which contribution is required. The period covered by each such contribution report shall be plainly written thereon, indicating the final date for which compensation is paid.

There shall be executed as part of each such final contribution report a statement giving the address at which compensation records will be kept and the name of the person keeping the records.

[Board Order 47-123, 12 FR 2329, Apr. 9, 1947]

§ 345.7 Execution of employers' contribution reports.

Each contribution report on Form DC-1 shall be signed by (a) the individual, if the employer is an individual; (b) the president, vice president, or other duly authorized officer, if the employer is a corporation; or (c) a responsible and duly authorized member or officer having knowledge of its affairs if the employer is a partnership or other unincorporated organization. [Board Order 54-253, 19 FR 7265, Nov. 9, 1954]

§ 345.8 Prescribed forms for employers' 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 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 shall be carefully prepared so as to set forth fully and clearly the data called for therein. Contribution reports which have not been so prepared will not be accepted, and the submission thereof shall have no effect whatever. 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 the penalty imposed for the delinquent filing of the contribution report: Provided, That the failure to file a contribution report on the prescribed form is not attributable to the fault of the employer: And provided further, That without unnecessary delay such tentative report is supplemented by a contribution report made on the proper form.

[Board Order 47-123, 12 FR 2329, Apr. 9, 1947]

§ 345.9 Place and time for filing employers' contribution reports.

Each employer's contribution report shall be filed with the Director of Budget and Fiscal Operations, Railroad Retirement Board, 844 Rush Street, Chicago 11, Illinois.

(a) Except as provided in paragraph (b) of this section, the employer's contribution report for each quarterly

period shall be filed on or before the last day of the second 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.

(b) For eligible employers who have elected to report contributions annually in accordance with § 345.5(a)(2), the contribution report shall be filed on or before the last day of the second calendar month following the close of the calendar year. 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.

(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 FR 10200, Dec. 17, 1959]

§ 345.10 Payment of employers' contributions.

(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, Illinois 60611. 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