Multiple Employer RRTA Tax Election

IRC §3221(a)

Allows one employer to elect to apply the RRTA tax to the full monthly compensation cap, limiting the liability of other concurrent employers for the same employee.

Eligibility

Available when an employee is paid by two or more railroad employers in the same month; requires notice to the Secretary and agreement between employers.

Frequently Asked Questions

Who is eligible for the Multiple Employer RRTA Tax Election?

Available when an employee is paid by two or more railroad employers in the same month; requires notice to the Secretary and agreement between employers.

How does the Multiple Employer RRTA Tax Election work?

Allows one employer to elect to apply the RRTA tax to the full monthly compensation cap, limiting the liability of other concurrent employers for the same employee.

What law authorizes the Multiple Employer RRTA Tax Election?

The Multiple Employer RRTA Tax Election is authorized under IRC §3221(a) of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §3221

Source: Internal Revenue Code, Title 26, United States Code

§ 3221. Rate of tax(a) Tier 1 taxIn addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the applicable percentage of compensation paid during any calendar year by such employer for services rendered to such employer. For purposes of the preceding sentence, the term “applicable percentage” means the percentage equal to the sum of the rates of tax in effect under subsections (a) and (b) of section 3111 for the calendar year. (b) Tier 2 taxIn addition to other taxes, there is hereby imposed on every employer an excise tax, with respect to having individuals in his employ, equal to the percentage determined under section 3241 for any calendar year of the compensation paid during such calendar year by such employer for services rendered to such employer. (c) Cross referenceFor application of different contribution bases with respect to the taxes imposed by subsections (a) and (b), see section 3231(e)(2). (Aug. 16, 1954, ch. 736, 68A Stat. 433; Aug. 31, 1954, ch. 1164, pt. II, § 206(a), 68 Stat. 1040; Pub. L. 86–28, pt. II, § 201(d), May 19, 1959, 73 Stat. 29; Pub. L. 88–133, title II, § 202, Oct. 5, 1963, 77 Stat. 221; Pub. L. 89–97, title I, §§ 105(b)(3), 111(c)(3), July 30, 1965, 79 Stat. 335, 342; Pub. L. 89–212, §§ 4, 5(c), Sept. 29, 1965, 79 Stat. 861, 862; Pub. L. 89–699, title III, § 301(c), (e), Oct. 30, 1966, 80 Stat. 1078; Pub. L. 89–700, title III, §§ 301(iii), (v), (vi), 302, Oct. 30, 1966, 80 Stat. 1088, 1089; Pub. L. 91–215, § 5(a), (b)(1), Mar. 17, 1970, 84 Stat. 71; Pub. L. 93–69, title I, § 102(d)–(f), July 10, 1973, 87 Stat. 162, 163; Pub. L. 93–445, title V, § 501, Oct. 16, 1974, 88 Stat. 1359; Pub. L. 94–93, title II, § 203, Aug. 9, 1975, 89 Stat. 466; Pub. L. 94–455, title XIX, §§ 1903(a)(9), 1906(b)(13)(G), Oct. 4, 1976, 90 Stat. 1808, 1835; Pub. L. 97–34, title VII, § 741(c), Aug. 13, 1981, 95 Stat. 347; Pub. L. 98–76, title II, §§ 211(b), 222, Aug. 12, 1983, 97 Stat. 419, 420; Pub. L. 100–203, title IX, § 9032(a), Dec. 22, 1987, 101 Stat. 1330–296; Pub. L. 101–508, title V, § 5125(c), Nov. 5, 1990, 104 Stat. 1388–286; Pub. L. 107–90, title II, §§ 203(b), 204(a), Dec. 21, 2001, 115 Stat. 891; Pub. L. 111–147, title I, § 101(d)(1), Mar. 18, 2010, 124 Stat. 74; Pub. L. 113–295, div. A, title II, § 221(a)(100)(C), Dec. 19, 2014, 128 Stat. 4052; Pub. L. 115–141, div. U, title IV, § 401(b)(36), Mar. 23, 2018, 132 Stat. 1204.)

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Legal Sources

US Code (Official) — 26 USC §3221 → Cornell Law Institute — 26 USC §3221 → Search IRS.gov for IRC §3221(a) → Treasury Regulations (26 CFR) →

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