IRS issues 2016 Tier 2 railroad retirement tax rates

The IRS has released the Tier 2 Railroad Retirement Tax Act (RRTA) tax rates for 2016 for railroad employees, employers and employee representatives, respectively. For 2016, the Tier 2 tax rate on employees is 4.9% of compensation and the Tier 2 tax rate on employers and employee representatives is 13.1% of compensation. (IRS Notice, November 13, 2015.)

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