If you do accounting work or work for a railroad company, you’re likely familiar with Form CT-1. The form, also known as the Employer’s Annual Railroad Retirement Tax Return, allows employers to report taxes imposed by the Railroad Retirement Act, or the RRTA. Any payments required should be provided via Form CT-1(V), which is attached at the bottom of the form, and any necessary corrections can be made with Form CT-1X.
Though only filed once each year, this form can be a pain to complete. If you’re struggling to fill out CT-1 this year, your data might be to blame. The only way to quickly and accurately file tax and wage records, especially for federal forms, is to properly document tax and wage data. That process becomes a lot easier with software tools from Advanced Micro Solutions.
What is the Railroad Retirement Tax Act?
The Railroad Retirement Tax Act established retirement and disability annuities paid to railroad workers with at least 10 years of service. The number decreases to 5 years of service if they were performed after 1995. In essence, the act establishes a pension for railroad workers, paid for by railroad companies. If you do accounting work or own one of such companies, you’re likely very familiar with the Employer’s Annual Railroad Retirement Tax Return. This form allows employers to report taxes imposed by the RRTA.
Differences Between Form CT-1 and Form CT-1X
Form CT-1 is used to report taxes imposed by the Railroad Retirement Tax Act. By contrast, Form CT-1X is used to correct any errors you may have recently filed. The corrections covered in this form include employee Tier I and Tier II tax and Medicare tax, as well as both credits and exemptions for certain qualified employers.
Filing Software from AMS
While AMS software does not directly support the Employer’s Annual Railroad Retirement Tax Return, our Forms Filer Plus module ($49) supports Form CT-1X. Still, our software tools can make your Railroad Retirement Tax Return filings easier, no matter your exact needs.
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The easiest way to tackle the Employer’s Annual Railroad Retirement Tax Return and its corrections form is to use a combination of payroll software and form filing software. AMS Payroll ($129), our semi-automated payroll program, is a great place to start. Employers will need to include information about various taxes, wages, and other forms of compensation paid to employees. The only way to distill this information is with a powerful payroll software.
AMS Payroll is up to the task. Our software automatically calculates a variety of state, local, and federal taxes, saving you both time and a headache. Users can also personalize the software to suit their needs. For railroad companies, this includes designating employees based on Tier. AMS Payroll will allow you to do this seamlessly.
Once your data is collected and in place, you can fill out the necessary forms on our Forms Filer Plus software. Employers can enter data directly into a digital facsimile of the required form, then either print or electronically file right from the software. With the right combination of tools, tax and wage filing is easier than ever.