The following payments paid to an employee by an employer are not considered creditable compensation under the Railroad Retirement Act and the Railroad Unemployment Insurance Act:

• Sick pay paid subsequent to the sixth month following the month last worked, as described in Part IV, Chapter 3 on sick pay and Chapter 2 on miscellaneous compensation;
• Contributions and payments for pension or profit sharing made under a plan that qualifies for exclusion from income under the Internal Revenue Code. This exclusion does not apply to Section 401(k) plans;
• Payments made to an employee who has been called to active military service which are intended to supplement military pay;
• Payments made to an employee's survivor or to an estate in the year after the employee died. (Payments made after death but in the year of death are creditable compensation.);
• Interest paid on compensation earned but not timely paid;
• The value of "qualified" fringe benefits received under a Section 125 cafeteria plan, also known as a flexible benefit plan. However, a cash payment received under such a plan is compensation;
• Tip earnings of less than $20 per month;
• Compensation paid to a non-resident alien with a "F-1" or "J-1" visa;
• Compensation paid to the director of a railroad is not creditable. However, compensation paid to officers is creditable. Directors are not considered employees within the meaning of the Acts;
• Receivers and Trustees are designated employers and may not also be employees. This treatment is consistent with the position of the IRS;
• The partners in a Limited Liability Company do not receive creditable compensation. Their pay is treated the same as that as of a director of a company. The exception would be if they were performing material work. In that case, the partner pays FICA taxes on their individual income tax return. There is no method by which a partner can pay RRTA taxes.

Reimbursements

The following reimbursements for employment-related expenses are not creditable compensation or subject to tax.

• Educational assistance that is excluded from compensation under Section 127 of the Internal Revenue Code.
• Allowances or provisions for meals and lodging that are excluded from compensation under Section 119 of the Internal Revenue Code. Section 119 covers meals and lodging provided by the employer.
• Allowances or reimbursements for travel, meals and lodging that are incurred while traveling in the business of the employer and where paid under a plan that requires an employee to account for their expenditures. Expenditures not accounted for are creditable compensation.
• Reimbursements for moving expenses that are deductible under Section 217 of the Internal Revenue Code. apologizes

Service Performed Outside the United States

Earnings paid by a covered railroad employer for service performed outside the United States:

• for a non-US employer, regardless of citizenship of the employee, is not creditable;
• for a US employer, by citizens of the United States, is creditable;
• by non-US citizens, is generally not creditable, but there may be exceptions.