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Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

Tax Deposits by Railroads

(Posted April 8, 2004)

Question 427: When does the railroad deposit its portion of Railroad Retirement payroll taxes? I read somewhere that the railroad doesn't deposit taxes until the employee retires; is that right?

Answer: Railroads are required by the Internal Revenue Service to make frequent deposits of the amounts withheld from workers' earnings for Railroad Retirement and to make frequent deposits of the additional amounts that they, as employers, owe based on those earnings. Deposits are made at least monthly, but often more frequently by the larger railroads.

The funds go directly into the various Railroad Retirement Trust Funds used to finance the program. Funds not immediately needed to make payments are invested; the earnings are credited to Railroad Retirement.

Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.

Copyright 1997-2017 Robert S. Kaufman
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