9/12/2023 0 Comments Rrb 1099 rThe employee could be credited with five additional service months. How many deemed service months could be credited to the employee? An employee works seven months in 2021 before being furloughed, but earns compensation of $108,000. Fewer months may be deemed, if an employment relation, as defined in Question 1, does not exist.ģ. The excess amount is then divided by 1/12 of the Tier II maximum the result, rounded up to the next whole number, equals the maximum number of months that may be deemed as service months for that year. How is credit for additional service months computed?įor additional service months to be deemed, the employee’s compensation for the year, up to the annual Tier II maximum, must exceed an amount equal to 1/12 of the Tier II maximum multiplied by the number of service months actually worked. ![]() An “employment relation” is severed by retirement, resignation, relinquishing job rights in order to receive a separation allowance or termination.Ģ. (An employee representative is a labor official of a non-covered labor organization who represents employees covered under the acts administered by the Railroad Retirement Board.)įor this purpose, an “employment relation” generally exists for an employee on an approved leave of absence (for example, furlough, sick leave, suspension, etc.). What requirements must be met before additional service months can be deemed?Ī service month can be deemed if an employee has less than 12 service months reported in the year, has sufficient compensation reported and is in an “employment relation” with a covered railroad employer, or is an employee representative, during that month. The following questions and answers describe the conditions under which an employee may receive additional Railroad Retirement service month credits under the deeming provisions of the Railroad Retirement Act.ġ. However, work by a local lodge or division secretary collecting insurance premiums, regardless of the amount of salary, is creditable railroad work.) Also, under certain circumstances, additional service months may be deemed in some cases where an employee does not actually work in every month of the year. (Local lodge compensation is disregarded for any calendar month in which it is less than $25. Earnings are creditable, up to certain annual maximums, on the amount of compensation subject to Railroad Retirement taxes.Ĭredit for a month of railroad service is earned for every month in which an employee had some compensated service covered by the Railroad Retirement Act.
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