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Railroad Employee Taxes and Wage Bases for 2009 - Slide 15

Railroad Employee Taxes and Wage Bases for 2007

Text Version:

Railroad Employee Taxes and Wage Bases for 2009

  Tier I Medicare
(Health Insurance)
Tier II
Tax Rate 6.2% 1.45% 3.90%
Wage Base $106,800 No Cap $79,200

2009 tax on employee earning $106,800 is $11,259.


 

Notes:

  • Tier I tax rate and wage base same as under social security.
  • Employer tier I tax rate and wage base same as for employee.  However, in 2009 employer pays tier II tax of 12.10% on $79,200 base.  2009 employer tax on an employee earning $106,800 is $17,753.40.
  • 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: 08/20/2008
Date updated: 02/25/2009