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Railroad Employee Taxes and Wage Bases
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Railroad Employee Taxes and Wage Bases for 2012 - Slide 15

Railroad Employee Taxes and Wage Bases for 2011

Text Version:

Railroad Employee Taxes and Wage Bases for 2012

  Tier I Medicare
(Health Insurance)
Tier II
Tax Rate 4.2% 1.45% 3.90%
Wage Base $110,100 No Cap $81,900
 

Notes:

  • Tier I tax rate and wage base same as under social security. December 2010 legislation temporarily lowered the social security payroll tax rate on employees, and the corresponding tier I payroll tax rate on railroad employees, by 2 percentage points for calendar year 2011. Subsequent legislation extended the temporary reduction through February 2012.
  • Employer pays tier I tax rate of 7.65% on $110,100 wage base in 2012; also pays tier II tax of 12.10% on $81,900 base. 
  • Employer and employee tier II rates are based on the ratio of certain asset balances to the sum of benefits and administrative expenses.
  • If excess tax withheld from two employers, credit may be due employee and claimed on Federal income tax return.  See IRS publication 505, Tax Withholding and Estimated Tax.

 


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Date posted: 02/10/2012
Date updated: 02/10/2012