Quality Reporting Service Center

Work in the Railroad Industry - Your annuity cannot be paid when you work for a railroad or other employer in the railroad industry.

Earnings of More Than $1,260 (After Deductions of Disability-Related Expenses) From Any Work - Your annuity cannot be paid for any month you do any work and earn over $1,260 after deduction of disability-related work expenses. This earnings restriction applies until the month you reach full retirement age.

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Chapter 5: Employer Coverage

Coverage Status

A Supplemental Sick Pay Plan payer may be a covered employer under the Railroad Retirement Act (RRA) or a third party that disburses Supplemental Sick Pay. A third party payer which disburses creditable sickness payments may or may not be a covered employer under the RRA.

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Chapter 4: Form CT-1

Employer's Annual Railroad Retirement Tax Return and Tax Issues

The railroad retirement system's annuity programs are funded by mandatory employment taxes on both employees and employers under the Railroad Retirement Tax Act (RRTA). Under the RRTA, sick pay is subject only to Tier I tax. Sick pay is not subject to Tier II tax.

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Chapter 3: Sick Pay Reporting Forms

Reporting Sick Pay

Form BA-3, Annual Report of Creditable Compensation is used to report sick pay compensation. It is due by the last day of February following the year in which the sick pay compensation was paid.

Form BA-4, Report of Creditable Compensation Adjustments is used to adjust sick pay compensation previously submitted that is incorrect on the employee's records. Adjustment reports of sick pay may be submitted any time throughout the year but are due no later than the last day of February following the year in which the adjustment occurred.

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Chapter 1: Principles of Creditable Sick Pay

Reporting Instructions for Creditable Sickness Payments

The Reporting Instructions for Creditable Sickness Payments provides instructions to sickness payers on reporting requirements under the Railroad Retirement Act (RRA). Such payers must file reports with the Railroad Retirement Board's Compensation and Employer Services Center (CESC) within the Office of Policy and Systems. These instructions cover forms and correspondence relating to the following subjects:

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Reporting Instructions for Creditable Sickness Payments (RICSP)

Prepared and released periodically to officials of employers covered under the Railroad Retirement and Railroad Unemployment Insurance Acts to assist them in their responsibilities under the Acts for the reporting of creditable sickness payments. This website version duplicates the material previously released in binder form.

The reporting instructions are maintained by the Compensation and Employer Service Center (CESC) of the RRB's Office of Programs - Policy and Systems. If you have any questions, contact CESC at (312) 751-4992.

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