Tier 2 tax rates for railroads, no changes for 2024
Tier 2 taxes are a source of funding for benefits under the Railroad Retirement Act.
Tier 2 taxes are a source of funding for benefits under the Railroad Retirement Act.
The U.S. Treasury Department and IRS today released for publication in the Federal Register a notice providing the tier 2 tax rates for 2024 (that is, with respect to compensation paid in 2024).
Tier 2 taxes imposed on railroad employees, employers, and employee representatives are a source of funding for benefits under the Railroad Retirement Act.
According to the notice [PDF 168 KB], there are no changes to the tier 2 tax rates for 2024 (that is, the rates are unchanged from the rates applicable for 2023 through 2015).
The tier 2 tax rates for 2024 are for:
- Employees—4.9% of compensation
- Employers—13.1% of compensation
- Employee representatives—13.1% of compensation
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.