Entering a Railroad W-2
Online · Written guide Content date 1 min read
Railroad employers are subject to a separate system of employment taxes administered by the Railroad Retirement Board (RRB) and the IRS. Payments subject to railroad retirement taxes are specifically excepted from FICA, FUTA, and the Self-Employment Contributions Act (SECA).
Railroad employers operate under the Railroad Retirement Tax Act (RRTA) and must withhold Tier 1 RRTA tax and Tier 2 RRTA tax. Tier 1 provides Social Security and Medicare-equivalent benefits, while Tier 2 provides a private pension benefit.
Form W-2
An RRB Form W-2 is similar to a standard W-2, however RRTA taxes are shown in Box 14, and Boxes 3 through 6 related to FICA and Medicare tax are blank.
To enter a RRB W-2 in Tax Processors Plus Online, from the Federal Section of the tax return select:
- Income
- Form W-2 - If this isn't the first W-2, click +Add a W-2 Wage Statement
- If filing MFJ, click the button for the taxpayer or spouse as appropriate.
- Check the This is a railroad W-2 check box.
- Enter all the W-2 information as needed. Be sure to remove the amounts that Tax Processors Plus Online autofills in boxes 3-6.
- In the drop down menu for box 14, select the RRTA Tier 2 codes as needed and enter their amounts.
Depending on the amount of wages in the return, Tax Processors Plus Online will autocomplete Form 8959 if any additional Medicare tax is owed.
Additional Information: