Form CT-2: Employee Representative's Quarterly Railroad Tax Return
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Form CT-2: Employee Representative’s Quarterly Railroad Tax Return

Form CT-2, issued by the Internal Revenue Service (IRS), is a federal corporate income tax form used to report the railroad retirement taxes imposed on the compensation received by designated employee representatives. As information reported on it contributes to the Railroad Retirement System, employers and employee representatives must ensure that an accurate form is submitted to the IRS for accurate payment of taxes.

What is Form CT-2?

Form CT-2, also known as the Employee Representative’s Quarterly Railroad Tax Return, is mandated by the Internal Revenue Service (IRS) and is used to report and pay the railroad retirement taxes that are due on the compensation of employee representatives. This form is necessary for the IRS to collect railroad retirement taxes to fund the Railroad Retirement System, which provides retirement, survivor, and disability benefits for the nation’s railroad workers and their families. The information reported on Form CT-2 is essential to the proper operation of this system and must be submitted to the IRS by the last day of the second month following the close of the employer’s tax year, accompanied by any relevant payments. It should be noted that employers who are subject to the Railroad Retirement Tax Act must also fill-out and submit Form CT-2.

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IRS Form CT-2 – Who Needs to Fill It Out?

Form CT-2, Employer’s Annual Railroad Retirement Tax Return and the Employee Representative’s Quarterly Railroad Tax Return, are both important forms utilized by the IRS. Both forms are required to be filled out by employers and employee representatives that are subject to the Railroad Retirement Tax Act. Payment of any taxes due must also be made when Form CT-2 is submitted. Employers must fill out Form CT-2 by the last day of the second month following the close of their tax year. Employee representatives must fill out Form CT-2 to report their compensation and the railroad retirement taxes imposed on it. All forms should be reported accurately, and any taxes due should be submitted with the form to the IRS.

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Step-by-Step: Form CT-2 Instructions For Filling Out the Document

Filling out Form CT-2, Employer’s Annual Railroad Retirement Tax Return, involves providing the Internal Revenue Service (IRS) with details about the employee representative’s compensation and the taxes due for that quarter. Individuals required to report this information are those designated as employee representatives. The form serves the primary purpose of reporting the amount of railroad retirement taxes imposed on the employee representative’s specific compensation​1​​2​. Along with the form, a payment of any taxes due must also be submitted to the IRS by the last day of the second month following the close of the employer’s tax year. Form CT-2 is essential for contributing to the funding of the Railroad Retirement System, which creates retirement, survivor, and disability benefits​4​ for railroad workers and their families.

Below, we present a table that will help you understand how to fill out Form CT-2.

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Information Required for Form CT-2 Details
Railroad Retirement Tax Reporting taxes on employee representative’s compensation
Filing Deadline Filing by the last day of the second month following the close of the employer’s tax year

Do You Need to File Form CT-2 Each Year?

Employers who are subject to the Railroad Retirement Tax Act must file Form CT-2, the Employer’s Annual Railroad Retirement Tax Return, by the last day of the second month following the close of their tax year. This is in addition to any taxes due upon submission. Form CT-2 is also required of employee representatives, which are individuals who represent the interests of railroad employees and are responsible for reporting and paying taxes on the compensation they receive. The form is essential to the IRS’s collection of railroad retirement taxes, which ensure the Railroad Retirement System has the necessary funds to provide retirement, survivor, and disability benefits to railroad workers and their families.

Download the official IRS Form CT-2 PDF

On the official IRS website, you will find a link to download Form CT-2. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form CT-2

Sources:

https://www.irs.gov/forms-pubs/about-form-ct-2

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