(b) Recoverable under section 2(f) of the Act because remuneration is found to be payable with respect to a period which includes days which had been determined to be days of unemployment or sickness;

(c) Recoverable under section 4 (a-1) (ii) of the Act because of the employee's having received or been held entitled to receive annuity payments under the Railroad Retirement Act, insurance benefits under Title II of the Social Security Act, unemployment, sickness or maternity benefits under any law other than the Railroad Unemployment Insurance Act, or any other social insurance payments under any law; or

(d) Recoverable under section 12(0) of the Act by virtue of the Board's right to reimbursement from any sum or damages payable through suit, compromise, settlement, judgment, or otherwise on account of liability based upon an infirmity, to the extent that it will have paid or will pay benefits for days of sickness resulting from that infirmity. § 340.3

When amounts recoverable to be recovered.

Amounts recoverable shall be recovered in all cases except those in which recovery is waived under § 340.10 or a compromise is approved under § 340.13. § 340.4 Methods of recovery of amounts recoverable.

An amount recoverable may be recovered by any one or a combination of the methods described in §§ 340.5, 340.6, 340.7, and 340.8.

§ 340.5 Recovery by cash payment.

The Board shall have the right to require that amounts recoverable be immediately and fully repaid in cash and any debtor shall have the absolute right to repay such amount recoverable in this manner. However if the debtor is financially unable to pay the indebtedness in a lump sum, payment may be accepted in regular installments. The amount and frequency of such installment payments should bear a reasonable relation to the size of the debt and the debtor's ability to pay. Whenever possible installment payments should be sufficient in amounts and frequency to liquidate the debt in not more than three years. § 340.6 Recovery by setoff.

An amount recoverable may be recovered by setoff against any subsequent

payments to which the individual from whom the amount is recoverable is entitled under the Railroad Unemployment Insurance Act or the Railroad Retirement Act, or, in the case of that individual's death, from any payments due under those Acts to his estate, designee, next of kin, legal representative, or surviving spouse. In any case in which full recovery is not effected by setoff, the balance due may be recovered by one or more of the other methods described in this part. If the individual dies before recovery is completed, such recovery shall be made from his estate or heirs.

§ 340.7 Recovery by deduction in computation of death benefit under Railroad Retirement Act of 1937.

In computing the benefit under section 5(f) (2) of the Railroad Retirement Act of 1937 with respect to the death of an individual, the Board shall include in the benefits deducted from the applicable percentages of the aggregate compensation mentioned in that section all amounts recoverable, not otherwise recovered, that were paid to the individual or paid to others as benefits accrued to him but not paid at his death.

§ 340.8 Recovery by adjustment in connection with subsequent payments under the Railroad Retirement Act. Adjustment with respect to an amount recoverable from an individual may be made by substracting the amount recoverable from the actuarial value, as determined by the Board, of any annuity payments due and becoming due under the Railroad Retirement Act to any individual on the basis of the same compensation and recertifying such annuity on the basis of the reduced actuarial value. The adjustment described in this section may not be made unless all the following conditions are shown to exist:

(a) That the person or persons whose annuities are being adjusted are alive on the date that the annuity is recertified and on the due date of the first annuity payment affected by the adjustment;

(b) That, on the dates mentioned in paragraph (a) of this section, there are annuities accruing to one of suck persons;

(c) That the Board has waived in ac cordance with § 340.11 any right to recover by the methods described in §§ 340.5 and 340.6 but has not waived recovery in accordance with § 340.10.

AUTHORITY: The provisions of this Part 345 issued under sec. 12, 52 Stat. 1107, as amended; 45 U.S.C. 362. Interpret or apply sec. 8, 52 Stat. 1102, as amended; 45 U.S.C. -358.

§ 345.1 Statutory provisions.

Every employer shall pay a contribution, with respect to having employees in his service, equal to the percentage determined as set forth below of so much of the compensation as is not in excess of $300 for any calendar month paid by him to any employee 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-labor-organization employer shall be llable for that proportion of the contribution with respect to such compensation paid by all such employers which the compensation paid by him after December 81, 1946, 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:

1. With respect to compensation paid prior to January 1, 1948, the rate shall be 3 per centum;

2. With respect to compensation paid after the month in which this Act was amended in 1959, the rate shall be as follows:

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 81 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 pursuant 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 F.R. 10199, Dec. 17, 1959, as amended by Board Order 62-17, 27 F.R. 1415, Feb. 15, 1962; Board Order 63-198, 28 F.R. 13360, Dec. 10, 1963; Board Order 66131, 31 F.R. 16265, Dec. 20, 1966]

§ 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 follow

ing percentages of the amount of compensation paid to any employee for employment on and after July 1, 1939:

Percent

(1) July 1, 1939 through Dec. 31, 1947.
(2) Jan. 1, 1948 through Dec. 31, 1955.. 1/2
(3) Jan. 1, 1956 through Dec. 31, 1956--- 11⁄2
(4) Jan. 1, 1957 through Dec. 31, 1957.-- 2
(5) Jan. 1, 1958 through Dec. 31, 1958--- 21⁄2
(6) Jan. 1, 1959 through May 31, 1959--- 3
(7) June 1, 1959 through Dec. 31, 1961--- 3
(8) Jan. 1, 1962 through Dec. 31, 1968--- 4
(9) Each succeeding calendar year, the

applicable percentage specified in
§ 845.1 of these regulations.

(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 contribution 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 railwaylabor-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-labor-organization 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 railway-labor-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 F.R. 10199, Dec. 17, 1959, as amended by Board Order 62-17, 27 F.R. 1416, Feb. 15, 1962]

§ 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

(a) General. (1) Except as provided in subparagraph (2) of this paragraph, 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 conpensation 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