RRB retirement wage bases, tax rates for 2016

As there is no cost-of-living increase in 2016, the U.S. Railroad Retirement Board has announced that the taxable earnings base for Tier I retirees will remain $118,500 in 2016. The taxable earnings base for RRB Tier II retirees will be $88,200 in 2016, also unchanged from 2015. (RRB Communication, October 15, 2015.)

Surcharge. The Board has also determined that there will be a 1.5% surcharge added to the basic Railroad Unemployment Insurance Act tax rate for established employers beginning January 1, 2016. There was also a 1.5% surcharge in 2015. The rate for new employers will be the average rate for all employers from 2012 through 2014. (RRB Communication, September 25, 2015.)

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