| CN/WISCONSIN CENTRAL GENERAL COMMITTEE OF ADJUSTMENT Office of the General Secretary Treasurer Facts on your Railroad Retirement payroll deductions |
| 2007 DEDUCTION RATES |
Tier I Maximum on 2007 Earnings: $97,500.00
Tier II Maximum on 2007 Earnings: $72,000.00
Employees Tier I Deduction is 6.2% or $6,045.00 maximum.
Employees Tier II Deduction is 3.9% or $2,831.40 maximum.
Employees Medicare Deduction is 1.45% with no maximum.
If your W-2's show that you exceed the Tier I & Tier II maximum
tax rate for 2007, then you are entitled to a refund.
How is it possible I exceeded these maximums?
Example 1: Your are a BLET union representative and draw
a salary or lost time wages from your union. Your combined
totals from your 2007 W-2's exceed Tier I and/or Tier II
maximums. Your entitled to a refund for those exceeded
amounts. Tier I refunds are to be claimed on your I.R.S.
Form 1040. Tier II refunds are to be claimed on I.R.S.
Form 843.
Example 2: You worked for two different railroads during tax
year 2007. Your combined totals from your 2007 W-2's exceed
Tier I and/or Tier II maximums. Your entitled to a refund for
those exceeded amounts. Tier I refunds are to be claimed on
your I.R.S. Form 1040. Tier II refunds are to be claimed on I.R.S.
Form 843.
For more information, consult with your local tax advisor or
the Internal Revenue Service and the Railroad Retirement
Board.
Tier II Maximum on 2007 Earnings: $72,000.00
Employees Tier I Deduction is 6.2% or $6,045.00 maximum.
Employees Tier II Deduction is 3.9% or $2,831.40 maximum.
Employees Medicare Deduction is 1.45% with no maximum.
If your W-2's show that you exceed the Tier I & Tier II maximum
tax rate for 2007, then you are entitled to a refund.
How is it possible I exceeded these maximums?
Example 1: Your are a BLET union representative and draw
a salary or lost time wages from your union. Your combined
totals from your 2007 W-2's exceed Tier I and/or Tier II
maximums. Your entitled to a refund for those exceeded
amounts. Tier I refunds are to be claimed on your I.R.S.
Form 1040. Tier II refunds are to be claimed on I.R.S.
Form 843.
Example 2: You worked for two different railroads during tax
year 2007. Your combined totals from your 2007 W-2's exceed
Tier I and/or Tier II maximums. Your entitled to a refund for
those exceeded amounts. Tier I refunds are to be claimed on
your I.R.S. Form 1040. Tier II refunds are to be claimed on I.R.S.
Form 843.
For more information, consult with your local tax advisor or
the Internal Revenue Service and the Railroad Retirement
Board.
| 2008 DEDUCTION RATES |
Tier I Maximum on 2008 Earnings: $102,000.00
Tier II Maximum on 2008 Earnings: $ 75,900.00
Employees Tier I Deduction is 6.2% or $6,324.00 maximum.
Employees Tier II Deduction is 3.9% or $2,948.40 maximum.
Employees Medicare Deduction is 1.45% with no maximum.
Details on 2008 Rates are available on this link:
Year 2008 Railroad Retirement and Unemployment Insurance
Rates.
Tier II Maximum on 2008 Earnings: $ 75,900.00
Employees Tier I Deduction is 6.2% or $6,324.00 maximum.
Employees Tier II Deduction is 3.9% or $2,948.40 maximum.
Employees Medicare Deduction is 1.45% with no maximum.
Details on 2008 Rates are available on this link:
Year 2008 Railroad Retirement and Unemployment Insurance
Rates.