IRS issues Tier 2 tax rates for 2017

The IRS has issued the Tier 2 tax rates for calendar year 2017 as required by Code Sec. 3201(b). Tier 2 taxes on railroad employees, employers, and employee representatives are one source of funding for benefits under the Railroad Retirement Act. The Tier 2 tax rates for calendar year 2017 apply to compensation paid in calendar year 2017. The Tier 2 tax rate for 2017 under Code Sec. 3201(b) on employees is 4.9% of compensation. The Tier 2 tax rate for 2017 under Code Sec. 3221(b) on employers is 13.1% of compensation. The Tier 2 tax rate for 2017 under Code Sec. 3211(b) on employee representatives is 13.1% of compensation. (IRS Notice, Publication of Tier 2 Tax Rates, FR Doc. 2016-28747 Filed: 11/28/2016.)

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