Railroad Retirement Withholding

The eCMS Payroll application can be used to process railroad employee withholding for Railroad Tier 1, Tier 2 and Unemployment Insurance tax.

The Employee Master can be used to designate whether an Employee will be subject to these tax categories - RR T1 FICA - Social Security (SS)/Medicare (MC), RR T2 Pension and RR Unemployment Insurance. It will also be necessary to adjust the Payroll Burden defaults, and set up Distribution Masters and Employee/Employer Tax Tables for the new withholding.

Payroll Burden Defaults

The burden defaults screen is located on page three of the Payroll defaults. Click the RR Dist button to access the Railroad Employee Burden Defaults screen. Use this screen to set up the Pay Items/Cost Codes that will apply to Railroad Employees. The field entries in the upper portion of both this screen and the previous Burden defaults screen will always be in sync - making a change to one will modify the other.

Employee Master - General tab

The following fields are located on the right side of the screen. For Railroad Employees only:

Subject to RR T1 FICA-SS/MC

Select one of the following withholding options from the drop-down list.

NO-Both

Employee is subject to neither RR Tier 1 FICA Social Security or Medicare.

SS-Only

Employee is subject to RR Tier 1 FICA Social Security only.

MC-Only

Employee is subject to RR Tier 1 FICA Medicare only.

YES-Both

Employee is subject to both RR Tier 1 FICA Social Security and Medicare.

Subject to RR T2 Pension

Select if this Employee is subject to RR T2 Pension withholding.

Subject to RR UI

Select if this Employee is subject to RR Unemployment Insurance withholding.

Distribution Master

The Distribution Master, and underlying Distribution Master table, allow distributions to be set up for Tier 1 FICA, Tier 1 Medicare, Tier 2 Pension, and Railroad Unemployment Insurance taxes.

The following Distribution Code options are available from the Distribution Code drop-down list. Records will be stored in the Distribution table according to the number (6 - 9) associated with each option.

Benefits and Deductions Entry

The Exempt Withholding Tax Codes section of the Benefits and Deductions Entry screens for H/R records, Miscellaneous records, and Union records include options for:

Tax Table Maintenance

In addition to the above Distribution Masters, Employee and Employer Tax Tables will need to be set up for the new RR Table Types available from the drop-down prompt. The Employe Tax Table does not include the option for 9 - RR UI.

Inquiry

Many of the Inquires used through the payroll application will reflect the four railroad taxes now being collected. When available, click the RAILROAD tab to view the following to display Railroad tax activity.