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, 1989 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, 1963--. (9) Each succeeding calendar year, the

applicable percentage specified in § 345.1 of these regulations.

8

3/2 11⁄2 2 22 3 84

(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 inIcluded 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,

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

(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

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 F.R. 2303, Mar. 18, 1952, as amended by Board Order 55-325, 20 F.R. 9009, Dec. 8, 1955; Board Order 66-123, 31 F.R. 15239, Dec. 6, 1966]

§ 345.6 Final employers' contribution reports.

Upon termination of employer status,

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 47-128, 12 F.R. 2829, 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 filled 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 47-128, 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 calen

dar 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 F.R. 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 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 59-219, 24 FR. 10200, Dec. 17, 1959]

(a) In general. Section 8(d) of the act provides that if 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 (i) 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. 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

No

the time the contribution was paid, whichever of such periods expires the later, or if no contribution report was filled, 2 years from the time the contribution was paid. No underpayment shall be adjusted under this section after the receipt from the Board of formal notice and demand for payment based upon an assessment, but the entire amount assessed shall be paid to the Board pursuant to such notice and demand.

[Board Order 52-61, 17 F.R. 2805, Mar. 18, 1952, as amended by Board Order 60-114, 25 F.R. 7486, Aug. 9, 1960]

§ 345.13 Refunds.

(a) In general. Section 8(e) of the act provides that if more than the correct amount of the employer's contribution is paid with respect to any compensation and the overpayment cannot be adjusted, the amount of the overpayment shall be refunded in such manner and at such times (subject to the statute of limitations properly applicable thereto) as may be prescribed by regulations of the Board.

(b) When permitted. A claim for refund may be made only when the overpayments cannot be adjusted in accordance with the procedure set forth in § 345.12.

(c) Form of claim. A claim for refund shall be made on Form DC-3 in accordance with the instructions and regulations applicable thereto. The prescribed form may be obtained from the Board. There shall be set forth all grounds in detail and all facts alleged in support of the claim, including the amount and date of each payment to the Board of the contribution for which refund is claimed, the name and address of the employer who paid the contribution to the Board, and the period covered by the contribution report on which such contribution was reported.

(d) Claim by fiduciary. If any contribution is paid by or on behalf of an individual who thereafter dies and a claim for refund or credit is filed by a legal representative of the deceased, certified copies of the letters testamentary, letters of administration, or other similar evidence shall be annexed to the claim, to show the authority of the executor, administrator, or other fiduciary by whom the claim is filed. If an executor, administrator, guardian, trustee, receiver, or other fiduciary pays any contribution and thereafter a claim for refund or credit is filed by the same fiduciary, documentary evidence to estab

lish the legal authority of the fiduciary need not accompany the claim, provided a statement is made in the claim showing that the contribution was paid by the fiduciary and that he is still acting. In such cases, if a refund or interest is to be paid, letters testamentary, letters of administration, or other evidence may be required to be submitted upon the receipt of a specific request therefor. If a claim is filed by a fiduciary or employer other than the one by whom the contribution was paid, the necessary documentary evidence shall accompany the claim. The claim form may be executed by an agent of the employer on whose behalf the claim is made, but in such case a power of attorney shall accompany the claim.

(e) Time limit. No refund shall be allowed 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, whichever of such periods expires the later, or if no contribution report was filled, 2 years from the time the contribution was paid.

[Board Order 39-664, 4 FR. 4872, Oct. 26, 1939, as amended by Board Order 51-254, 16 F.R. 8797, Aug. 30, 1951; Board Order 54-258, 19 F.R. 7265, Nov. 9, 1961; Board Order 60-114, 25 FR. 7486, Aug. 9, 1960]

§ 345.14 Assessment and collection of contributions or underpayments of contributions.

(a) If any employer's contribution is not paid to the Board when due or is not paid in full when due, the Board may, as the circumstances warrant, assess the contribution or the deficiency and interest and penalty, if any (whether or not the deficiency is adjustable as an underpayment).

(b) The amount of any such assessment will be collected, in accordance with the applicable provisions of law. If any employer liable to pay any contribution neglects or refuses to pay the same within ten days after notice and demand, the Board may collect such contribution with such interest and other additional amounts as are required by law, by distraint and sale in the manner provided by law.

[Board Order 62-17, 27 FR. 1416, Feb. 15, 1962]