Formulář CT-1 Návod
Pokyny pro formulář CT-1, každoroční návrat zaměstnance do důchodu
Rev. 2023
Související formuláře
- Formulář CT1 - Návrat k dani z příjmu zaměstnanců na železnici
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form CT-1
Employer's Annual Railroad Retirement Tax Return
Section references are to the Internal Revenue Code unless
otherwise noted.
coverage beginning on or before September 30, 2021. A
premium payee was entitled to the COBRA premium
assistance credit at the time an eligible individual elected
coverage. Therefore, due to the COBRA notice and election
period requirements (generally, employers had 60 days to
provide notice and assistance eligible individuals had 60
days to elect coverage), the first quarter of 2022 was the last
quarter in which most employers may have been eligible to
claim the COBRA premium assistance credit.
Contents
Page
Reminders
The COVID-19 related credit for qualified sick and family
leave compensation is limited to leave taken after March
31, 2020, and before October 1, 2021. Generally, the
credit for qualified sick and family leave compensation, as
enacted under the Families First Coronavirus Response Act
(FFCRA) and amended and extended by the COVID-related
Tax Relief Act of 2020, for leave taken after March 31, 2020,
and before April 1, 2021, and the credit for qualified sick and
family leave compensation under sections 3131, 3132, and
3133 of the Internal Revenue Code, as enacted under the
ARP, for leave taken after March 31, 2021, and before
October 1, 2021, have expired. However, employers that pay
qualified sick and family leave compensation in 2023 for
leave taken after March 31, 2020, and before October 1,
2021, are eligible to claim a credit on Form CT-1 filed for
Worksheet 1. Credit for Qualified Sick and Family
Leave Compensation Paid in 2023 for Leave
Taken After March 31, 2020, and Before April
Worksheet 2. Credit for Qualified Sick and Family
Leave Compensation Paid in 2023 for Leave
Taken After March 31, 2021, and Before
March 31, 2020, and before April 1, 2021. Use Worksheet 2
to figure the credit for leave taken after March 31, 2021, and
before October 1, 2021. For more information about the
credit for qualified sick and family leave compensation, go to
Advance payment of COVID-19 credits ended. Although
you may pay qualified sick and family leave compensation in
2023 for leave taken after March 31, 2020, and before
October 1, 2021, you may no longer request an advance
payment of any credit on Form 7200, Advance Payment of
Employer Credits Due to COVID-19.
Future Developments
For the latest information about developments related to
Form CT-1 and its instructions, such as legislation enacted
What's New
Changes to tax rates and compensation bases. For the
2023 tax rates and compensation bases, see Employer and
Outsourcing payroll duties. Generally, as an employer,
you’re responsible to ensure that tax returns are filed and
deposits and payments are made, even if you contract with a
third party to perform these acts. You remain responsible if
the third party fails to perform any required action. Before you
choose to outsource any of your payroll and related tax duties
(that is, withholding, reporting, and paying over income taxes
and taxes imposed by the Railroad Retirement Tax Act) to a
third-party payer, such as a payroll service provider or
helpful information on this topic. For more information on the
different types of third-party payer arrangements, see section
16 of Pub. 15.
Credit for COBRA premium assistance payments. The
COBRA premium assistance credit lines have been
"Reserved for future use" on Form CT-1 because the first
quarter of 2022 was the last quarter in which most employers
may have been eligible to claim the COBRA premium
assistance credit.
Section 9501 of the American Rescue Plan Act of 2021
(the ARP) provided for COBRA premium assistance in the
form of a full reduction in the premium otherwise payable by
certain individuals and their families who elected COBRA
continuation coverage due to a loss of coverage as the result
of a reduction in hours or an involuntary termination of
employment (assistance eligible individuals). This COBRA
premium assistance was available for periods of coverage
beginning on or after April 1, 2021, through periods of
Correcting a previously filed Form CT-1. If you discover
an error on a previously filed Form CT-1, make the correction
using Form CT-1 X. Form CT-1 X is filed separately from
Sep 26, 2023
Cat. No. 16005H
Form CT-1. For more information, see the Instructions for
and calling 1-800-THE-LOST (1-800-843-5678) if you
recognize a child.
Change of address. Use Form 8822-B to notify the IRS of
General Instructions
an address change.
Federal tax deposits must be made by electronic funds
transfer (EFT). You must use EFT to make all federal tax
deposits. Generally, an EFT is made using the Electronic
Federal Tax Payment System (EFTPS). If you don't want to
use EFTPS, you can arrange for your tax professional,
financial institution, payroll service, or other trusted third party
to make electronic deposits on your behalf. Also, you may
arrange for your financial institution to initiate a same-day
wire payment on your behalf. EFTPS is a free service
provided by the Department of the Treasury. Services
provided by your tax professional, financial institution, payroll
service, or other third party may have a fee.
To get more information about EFTPS or to enroll in
EFTPS using TRS for people who are deaf, hard of hearing,
or have a speech disability, dial 711 and then provide the
TRS assistant the 800-555-4477 number above or
800-733-4829. Additional information about EFTPS is also
available in Pub. 966.
Purpose of Form CT-1
These instructions give you some background information
about Form CT-1. They tell you who must file Form CT-1, how
to complete it line by line, and when and where to file it.
Use Form CT-1 to report taxes imposed by the Railroad
Retirement Tax Act (RRTA). Use Form 941, Employer's
QUARTERLY Federal Tax Return, or, if applicable, Form 944,
Employer's ANNUAL Federal Tax Return, to report federal
income taxes withheld from your employees' wages and
other compensation.
In accordance with Notice 2021-24, 2021-18 I.R.B. 1122,
may have reduced deposits of employment taxes otherwise
required to be made that are reported on Form 941
(generally, income tax withholding) in anticipation of claiming
the credit for qualified sick and family leave compensation
paid in 2023 for leave taken after March 31, 2020, and before
October 1, 2021. For more information about qualified sick
later. For more information about this credit, see the line 16
reported when the 2023 Form CT-1 is filed in 2024, a
reduction in deposits of income tax withholding as described
above may have resulted in the issuance of a balance due
notice and the imposition of penalties and interest when the
Form 941 quarterly return was processed.
Paid preparers. If you use a paid preparer to complete
Form CT-1, the paid preparer must complete and sign the
paid preparer's section of Form CT-1.
Additional information. For more information, see one of
the resources discussed next.
Pub. 15 contains information for withholding, depositing,
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reporting, and paying over employment taxes.
Pub. 15-A contains specialized and detailed employment
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tax information supplementing the basic information provided
in Pub. 15.
If you reduced your deposits of employment taxes
reported on Form 941 in anticipation of the credit for qualified
sick and family leave compensation paid in 2023 for leave
taken after March 31, 2020, and before October 1, 2021, and
this resulted in those amounts being included as a balance
due in a notice, contact us as soon as possible by either (1)
writing to the address shown on your notice, or (2) calling the
telephone number shown on your notice. If you contact us in
writing, include a copy of your notice and the amount of
employment tax deposits reported on Form 941 that you
reduced in anticipation of the credit for qualified sick and
family leave compensation paid in 2023 for leave taken after
March 31, 2020, and before October 1, 2021. Whether you
owe tax, penalties, and interest will depend upon the credits
properly claimed on Form CT-1.
Pub. 15-B contains information about the employment tax
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treatment of various types of noncash compensation.
Pub. 915 contains the federal income tax rules for social
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security benefits and equivalent Tier 1 railroad retirement
benefits.
The Railroad Retirement Board (RRB) website at RRB.gov
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contains additional employer reporting information and
instructions.
How to get forms and publications. You can download or
print most of the forms and publications you may need at
OrderForms to place an order and have forms mailed to you.
The IRS will process your order as soon as possible. Don't
resubmit requests you've already sent us. You can get forms
and publications faster online.
Where can you get telephone help? You can call the IRS
Business and Specialty Tax Line at 800-829-4933 or
800-829-4059 (TDD/TTY for persons who are deaf, hard of
hearing, or have a speech disability) Monday–Friday from
7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii follow
Pacific time) for answers to your questions about completing
Form CT-1 or tax deposit rules.
Who Must File
For purposes of these instructions, all references to
"sick pay" mean ordinary sick pay, not “qualified sick
leave compensation.”
TIP
File Form CT-1 if you paid one or more employees
compensation subject to tax under RRTA.
A payer of sick pay (including a third party) must file Form
CT-1 if the sick pay is subject to Tier 1 railroad retirement
taxes. Include sick pay payments on lines 8–11 and, if the
withholding threshold is met, line 12 of Form CT-1. Follow the
reporting procedures for sick pay reporting in section 6 of
Pub. 15-A.
Photographs of Missing Children
The IRS is a proud partner with the National Center for
Missing & Exploited Children® (NCMEC). Photographs of
missing children selected by the Center may appear in
instructions on pages that would otherwise be blank. You can
help bring these children home by looking at the photographs
If a third-party payer of sick pay is also paying qualified
sick leave compensation on behalf of an employer, the third
party would be making the payments as an agent of the
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Instructions for Form CT-1 (2023)
employer. The employer is required to do the reporting and
payment of railroad retirement taxes with respect to the
qualified sick leave compensation and claim the credit for the
qualified sick leave compensation unless the employer has
an agency agreement with the third-party payer that requires
the third-party payer to do the collecting, reporting, and/or
paying or depositing railroad retirement taxes on the qualified
sick leave compensation. If the employer has an agency
agreement with the third-party payer, the third-party payer
includes the qualified sick leave compensation on the Form
CT-1 filed by the third party and claims the sick leave credit
on behalf of the employer on Form CT-1.
Timing. Compensation is considered paid when it is actually
paid or when it is constructively paid. It is constructively paid
when it is set apart for the employee, or credited to an
account the employee can control, without any substantial
limit or condition on how and when the payment is to be
made.
Any compensation paid during the current year that was
earned in a prior year is taxable at the current year's tax
rates; you must include the compensation with the current
year's compensation on Form CT-1, lines 1–12, as
appropriate. An exception applies to nonqualified deferred
compensation that was subject to Tier 1 and Tier 2 tax in a
prior year. See the rules for nonqualified deferred
After you file your first Form CT-1, you must file a return for
each year, even if you didn’t pay taxable compensation
during the year, until you file a final return.
compensation plans in section 5 of Pub. 15-A.
Exceptions. Compensation doesn't include the following.
Disregarded entities and qualified subchapter S subsid-
iaries (QSubs). Eligible single-owner disregarded entities
and QSubs are treated as separate entities for employment
tax purposes. Eligible single-member entities that haven’t
elected to be taxed as corporations must report and pay
employment taxes on compensation paid to their employees
using the entities' own names and employer identification
numbers (EINs). See Regulations sections 1.1361-4(a)(7)
and 301.7701-2(c)(2)(iv).
Certain benefits provided to or on behalf of an employee if
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at the time the benefits are provided it is reasonable to
believe the employee can exclude such benefits from
income. For information on what benefits are excludable, see
Pub. 15-B. Examples of this type of benefit include:
1. Certain employee achievement awards under section
74(c),
2. Certain scholarship and fellowship grants under
section 117,
Where To File
3. Certain fringe benefits under section 132, and
Send Form CT-1 to:
4. Employer payments to an Archer MSA under section
220 or health savings accounts (HSAs) under section 223.
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999-0048
Stock or stock options.
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Payments made specifically for traveling or other bona fide
and necessary expenses that meet the rules in the
regulations under section 62.
Payments for services performed by a nonresident alien
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When To File
temporarily present in the United States as a nonimmigrant
under subparagraphs (F), (J), (M), or (Q) of the Immigration
and Nationality Act.
File Form CT-1 by February 29, 2024.
Definitions
Compensation under $25 earned in any month by an
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The terms “employer” and “employee” used in these
employee in the service of a local lodge or division of a
railway-labor-organization employer.
instructions are defined in section 3231 and in its regulations.
Exceptions for sickness or accident disability
payments. For purposes of employee and employer Tier 1
taxes, compensation doesn't include sickness or accident
disability payments made to or on behalf of an employee or
dependents:
Compensation
Compensation means payment in money, meaning currency
issued by a recognized authority as a medium of exchange,
for services performed as an employee of one or more
employers. It includes payment for time lost as an employee.
Under a workers' compensation law,
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Under section 2(a) of the Railroad Unemployment
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Insurance Act for days of sickness due to an on-the-job injury,
Group-term life insurance. Include in compensation the
cost of group-term life insurance over $50,000 you provide to
an employee. This amount is subject to Tier 1 and Tier 2
taxes, but not to federal income tax withholding. Include this
amount on your employee's Form W-2, Wage and Tax
Statement.
Under the Railroad Retirement Act, or
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More than 6 months after the calendar month the
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employee last worked.
For purposes of Tier 2 taxes, compensation doesn't
include payments made to or on behalf of an employee or
dependents under a sickness or accident disability plan or a
medical or hospitalization plan in connection with sickness or
accident disability.
Former employees for whom you paid the cost of
group-term life insurance over $50,000 must pay the
employee's share of these taxes with their Form 1040, U.S.
Individual Income Tax Return, or Form 1040-SR, U.S. Tax
Return for Seniors. You’re not required to collect those taxes.
For former employees, you must include on Form W-2 the
part of compensation that consists of the cost of group-term
life insurance over $50,000. You must also separately report
on Form W-2 the amount of railroad retirement taxes owed by
the former employee for coverage provided after separation
from service. For more information, see section 2 of Pub.
15-B and the General Instructions for Forms W-2 and W-3.
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Instructions for Form CT-1 (2023)
Tips. Your employee must report cash tips to you by the 10th
day of the month following the month the tips are received.
The report should include charged tips you paid over to the
employee for charge customers, tips the employee received
directly from customers, and tips received from other
employees under any tip-sharing arrangement. Both directly
and indirectly tipped employees must report tips to you. Cash
tips must be reported for every month, unless the cash tips
for the month are less than $20. Stop collecting the Tier 1
Employee tax when the employee’s compensation and tips
for tax year 2023 reach $160,200. Collect the Tier 1
Employee Medicare tax for the whole year on all
Employer and Employee Taxes
Tax Rates and Compensation Bases
Tax Rates
Compensation
Paid in 2023
Tier 1
Employer and Employee: Each pay 6.2%
of first
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$160,200
All
Tier 1 Medicare
Employer and Employee: Each pay 1.45% of
compensation and tips. Collect the Tier 1 Employee
Additional Medicare Tax withholding on compensation and
tips that exceed $200,000 for the calendar year.
Tier 1 Employee Additional Medicare Tax
withholding
Employee: Pays 0.9% on
compensation exceeding
An employee must furnish you with a written (or electronic)
statement of cash tips, signed by the employee, showing (a)
their name, address, and social security number; (b) your
name and address; (c) the month or period for which the
statement is furnished; and (d) the total amount of cash tips.
Pub. 1244, Employee's Daily Record of Tips and Report to
Employer, a booklet for daily entry of tips and forms to report
Tips are considered to be paid at the time the employee
reports them to you. You must collect both employee railroad
retirement tax and federal income tax on cash tips reported to
you from the employee's compensation (after withholding
employee railroad retirement and federal income tax related
to the nontip compensation) or from other funds the
employee makes available. Apply the compensation or other
funds first to the railroad retirement tax and then to federal
income tax. You don't have to pay employer railroad
retirement taxes on tips.
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$200,000
Tier 2
Employer: Pays 13.1% of first
Employee: Pays 4.9% of first
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$118,800
$118,800
Employer Taxes
Employers must pay both Tier 1 and Tier 2 taxes, except for
the Tier 1 Employer tax (line 1) on qualified sick and family
leave compensation for leave taken after March 31, 2020,
and before April 1, 2021, and the Tier 1 Employee Additional
Medicare Tax. Tier 1 tax is divided into two parts. The amount
of compensation subject to each tax is different. See the
table above for the 2023 tax rates and compensation bases.
Concurrent employment. If two or more related
corporations that are rail employers employ the same
individual at the same time and pay that individual through a
common paymaster that is one of the corporations, the
corporations are considered a single employer. They have to
pay, in total, no more in railroad retirement taxes than a single
employer would. See Regulations section 31.3121(s)-1 for
more information.
Successor employers. Successor employers should see
section 3231(e)(2)(C) and Pub. 15 to see if they can use the
predecessor's compensation paid against the maximum
compensation bases.
If, by the 10th of the month after the month you received
an employee's tip income report, you don't have enough
employee funds available to withhold the employee tax, you
may report the excess amount without withholding the related
tax. Include the tips your employees report to you on lines 4,
5, 6, and 7, even if you were unable to withhold the
employee's share of tax. Then report the uncollected Tier 1
Employee tax, Tier 1 Employee Medicare tax, Tier 1
Employee Additional Medicare Tax withholding, and Tier 2
Employee tax on tips on line 14. See section 6 of Pub. 15.
Depositing Taxes
Employee Taxes
For Tier 1 and Tier 2 taxes, you’re either a monthly schedule
depositor or a semiweekly schedule depositor. However, see
“monthly schedule depositor” and “semiweekly schedule
depositor” identify which set of rules you must follow when a
tax liability arises (for example, when you have a payday).
They don't refer to how often your business pays its
You must withhold the employee's part of Tier 1 and Tier 2
later, for information on the employee tax on tips.
Withholding or payment of employee tax by employer.
You must collect the employee railroad retirement tax from
each employee by withholding it from employee
employees or to how often you’re required to make deposits.
compensation. If you don't withhold the employee tax, you
must still pay the tax. If you withhold too much or too little tax
because you can't determine the correct amount, correct the
amount withheld by an adjustment, credit, or refund
according to the applicable regulations.
If you were a monthly schedule depositor for the entire
year, complete the Monthly Summary of Railroad Retirement
Tax Liability in Part II of Form CT-1. If you were a semiweekly
schedule depositor during any part of the year or you
accumulated $100,000 or more on any day during a deposit
period, you must complete Form 945-A, Annual Record of
Federal Tax Liability.
If you pay the railroad retirement tax for your employee
rather than withholding it, the amount of the employee's
compensation is increased by the amount of that tax. See
Rev. Proc. 83-43,1983-1 C.B. 778, for information on how to
figure and report the proper amounts.
Lookback Period
Before each year begins, you must determine the deposit
schedule to follow for depositing Tier 1 and Tier 2 taxes for a
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Instructions for Form CT-1 (2023)
calendar year. This is determined from the total taxes
reported on your Form CT-1 for the calendar year lookback
period. The lookback period is the second calendar year
preceding the current calendar year. For example, the
lookback period for calendar year 2024 is calendar year
2022.
Semiweekly Schedule Depositor
If you’re a semiweekly schedule depositor, use the table
below to determine when to make deposits.
Deposit Tier 1 and Tier 2 taxes No later than...
for payments made on...
Use the table below to determine which deposit schedule
to follow for 2024.
Wednesday, Thursday, and/or
Friday
The following Wednesday
IF you reported taxes
(Form CT-1, line 19) for the
lookback period (2022) of...
THEN for 2024 you’re a...
Saturday, Sunday, Monday,
and/or Tuesday
The following Friday
$50,000 or less
Monthly schedule depositor
More than $50,000
Semiweekly schedule depositor
Example. Green, Inc., a semiweekly schedule depositor,
pays compensation on the last Friday of each month.
Although Green, Inc., is a semiweekly schedule depositor,
Green, Inc., will deposit just once a month because Green,
Inc., pays compensation only once a month. The deposit,
however, will be made under the semiweekly deposit
schedule as follows: Green, Inc.’s taxes for the April 26, 2024
(Friday), payday must be deposited by May 1, 2024
(Wednesday). Under the semiweekly deposit rule, taxes
arising on Wednesday through Friday must be deposited by
the following Wednesday.
Example. Rose Co. reported Form CT-1 taxes as follows.
2022 Form CT-1, line 19—$49,000.
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2023 Form CT-1, line 19—$52,000.
Rose Co. is a monthly schedule depositor for 2024
because its Form CT-1 taxes for its lookback period
(calendar year 2022) weren't more than $50,000. However,
for 2025, Rose Co. is a semiweekly schedule depositor
because the total taxes exceeded $50,000 for its lookback
period (calendar year 2023).
The last day of the calendar year ends the
semiweekly deposit period and begins a new one.
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New employer. If you’re a new employer, your taxes for both
years of the lookback period are considered to be zero.
Therefore, you’re a monthly schedule depositor for the first
and second years of your business. However, see $100,000
Next-Day Deposit Rule, later.
CAUTION
Deposits Due on Business Days Only
If a deposit is required to be made on a day that isn't a
business day, the deposit is considered to have been made
timely if it is made by the close of the next business day. A
business day is any day other than a Saturday, Sunday, or
legal holiday. For example, if a deposit is due on a Friday and
Friday is a legal holiday, the deposit will be considered timely
if it is made by the following Monday (if that Monday is a
business day). The term “legal holiday” for deposit purposes
includes only those legal holidays in the District of Columbia.
For a list of legal holidays, see section 11 of Pub. 15.
Adjustments and the lookback rule. To determine the
amount of taxes paid for the lookback period, use only the
Form CT-1 taxes reported on your original return.
Adjustments to a return for a prior period aren't taken into
account in determining the taxes for that prior period.
Example. Maple Co. originally reported Form CT-1 taxes
of $45,000 for the lookback period (2022). Maple Co.
discovered in March 2024 that the tax during the lookback
period (2022) was understated by $10,000 and will correct
this error with an adjustment on Form CT-1 X filed for 2022.
Maple Co. is a monthly schedule depositor for 2024
because the lookback period Form CT-1 taxes are based on
the amount originally reported ($45,000), which wasn't more
than $50,000. For purposes of the lookback rule, the $10,000
adjustment doesn't affect either 2022 taxes or 2024 taxes.
Semiweekly schedule depositors will always have at least
3 business days following the close of the semiweekly period
to make a deposit. If any of the 3 weekdays after the end of a
semiweekly period is a legal holiday, you have 1 additional
day to deposit. For example, if you have Form CT-1 taxes
accumulated for payments made on Friday and the following
Monday is a legal holiday, the deposit normally due on
Wednesday may be made on Thursday (allowing 3 business
days to make the deposit).
When To Deposit
Monthly Schedule Depositor
Exceptions to the Deposit Rules
If you’re a monthly schedule depositor, deposit employer and
employee Tier 1 and Tier 2 taxes accumulated during a
calendar month by the 15th day of the following month.
Example. Spruce Co. is a monthly schedule depositor
with seasonal employees. Spruce Co. paid compensation
each Friday during January but didn't pay any compensation
during February. Under the monthly schedule deposit rule,
Spruce Co. must deposit the combined taxes for the January
paydays by February 15. Spruce Co. doesn't have a deposit
requirement for February (due by March 15) because no
compensation was paid and, therefore, Spruce Co. doesn't
have a tax liability for the month.
The two exceptions that apply to the deposit rules are the:
$2,500 Rule, and
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$100,000 Next-Day Deposit Rule.
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$2,500 Rule. If your total Form CT-1 taxes after adjustments
and nonrefundable credits (line 19) for the year are less than
$2,500 and the taxes are fully paid with a timely filed Form
CT-1, no deposits are required. However, if you’re unsure that
you will accumulate less than $2,500, deposit under the
appropriate deposit rules so that you won't be subject to
deposit penalties.
5
Instructions for Form CT-1 (2023)
For more information on reducing deposits, see Notice 2020-
22, 2020-17 I.R.B. 664, available at IRS.gov/irb/
your tax liabilities reported on Part II or Form 945-A for
nonrefundable credits.
$100,000 Next-Day Deposit Rule. If you accumulate
undeposited taxes of $100,000 or more on any day during a
deposit period, you must deposit the taxes by the next
business day regardless of whether you’re a monthly or
semiweekly schedule depositor. If you're a monthly schedule
depositor and accumulate a $100,000 tax liability on any day
during the deposit period, you become a semiweekly
schedule depositor on the next day and remain so for at least
the rest of the calendar year and for the following calendar
year. The $100,000 tax liability threshold requiring a next-day
deposit is determined before you consider any reduction of
your liability for nonrefundable credits. For more information,
including an example, see frequently asked question 17 at
Electronic Deposit Requirement
You must use EFT to make all federal tax deposits. Generally,
an EFT is made using EFTPS. To get more information about
800-555-4477. To contact EFTPS using TRS for people who
are deaf, hard of hearing, or have a speech disability, dial 711
and then provide the TRS assistant the 800-555-4477
number above or 800-733-4829. Additional information about
EFTPS is also available in Pub. 966.
If you’re a monthly schedule depositor and you
accumulate $100,000 or more on any day during the month,
you become a semiweekly schedule depositor on the next
day for the remainder of the calendar year and for the
following year.
For an EFTPS deposit to be on time, you must submit
the deposit by 8 p.m. Eastern time the day before the
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CAUTION
date the deposit is due.
Once a semiweekly schedule depositor accumulates
$100,000 or more in a deposit period, it must stop
accumulating at the end of that day and begin to accumulate
anew on the next day. The following examples explain this
rule.
Same-day wire payment option. If you fail to submit a
deposit transaction on EFTPS by 8 p.m. Eastern time the day
before the date a deposit is due, you can still make your
deposit on time by using the Federal Tax Collection Service
(FTCS) to make a same-day wire payment. To use the
same-day wire payment method, you will need to make
arrangements with your financial institution ahead of time.
Please check with your financial institution regarding
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To learn
more about the information you will need to give your
financial institution to make a same-day wire payment, go to
Accuracy of Deposits Rule. You’re required to deposit
100% of your railroad retirement taxes on or before the
deposit due date. However, penalties won't be applied for
depositing less than 100% if both of the following conditions
are met.
1. Any deposit shortfall doesn't exceed the greater of
$100 or 2% of the amount of taxes otherwise required to be
deposited.
Example of $100,000 Next-Day Deposit Rule.
Fir Co. is a semiweekly schedule depositor. On Monday, Fir
Co. accumulates taxes of $110,000 and must deposit this
amount by Tuesday, the next business day. On Tuesday, Fir
Co. accumulates additional taxes of $30,000. Because the
$30,000 isn't added to the previous $110,000, Fir Co. must
deposit the $30,000 by Friday using the semiweekly deposit
schedule.
Example of $100,000 Next-Day Deposit Rule during
the first year of business. Elm, Inc., started its business on
Monday, May 6, 2024. Because this was the first year of its
business, its Form CT-1 taxes for its lookback period (2022)
are considered to be zero, and Elm, Inc., is a monthly
schedule depositor. On Wednesday, May 8, it paid
compensation for the first time and accumulated taxes of
$40,000. On Friday, May 10, it paid compensation and
accumulated taxes of $60,000, bringing its total accumulated
(undeposited) taxes to $100,000. Because Elm, Inc.,
accumulated $100,000 or more on May 10 (Friday), Elm, Inc.,
must deposit the $100,000 by May 13 (Monday), the next
business day. Elm, Inc., became a semiweekly schedule
depositor on May 11. Elm, Inc., will be a semiweekly
schedule depositor for the rest of 2024 and for 2025.
Example of when $100,000 Next-Day Deposit Rule
doesn't apply. Oak Co., a semiweekly schedule depositor,
accumulated taxes of $95,000 on a Tuesday (of a
2. The deposit shortfall is paid or deposited by the
shortfall makeup date for each type of depositor as described
below.
Monthly schedule depositor. Deposit the shortfall or pay
•
it with your return by the due date of Form CT-1. You may pay
the shortfall with Form CT-1 even if the amount is $2,500 or
more.
Semiweekly schedule depositor. Deposit the shortfall
•
Saturday-through-Tuesday deposit period) and accumulated
$10,000 on Wednesday (of a Wednesday-through-Friday
deposit period). Because the $10,000 was accumulated in a
deposit period different from the one in which the $95,000
was accumulated, the $100,000 Next-Day Deposit Rule
doesn’t apply. Thus, Oak Co. must deposit $95,000 by Friday
and $10,000 by the following Wednesday.
Reducing your deposits for the credit for qualified
sick and family leave compensation. Employers eligible
to claim the credit for qualified sick and family leave
compensation paid in 2023 for leave taken after March 31,
2020, and before October 1, 2021, can reduce their deposits
by the amount of their anticipated credit. Employers won't be
subject to a failure-to-deposit (FTD) penalty for reducing their
deposits if certain conditions are met. See the instructions for
by the earlier of the first Wednesday or Friday on or after the
15th of the month following the month in which the shortfall
occurred. For example, if a semiweekly schedule depositor
has a deposit shortfall during February 2024, the shortfall
makeup date is March 15, 2024 (Friday).
Penalties and Interest
The law provides penalties for failure to file a return, late filing
of a return, late payment of taxes, failure to make deposits,
and late deposits unless filing and/or paying late is due to
reasonable cause and not due to willful neglect. Interest is
charged on taxes paid late at the rate set by law. For more
information, see Pub. 15. Deposit or pay your taxes when
they are due, unless you meet the requirements discussed in
6
Instructions for Form CT-1 (2023)
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable cause criteria. Don't attach
an explanation when you file your return.
Qualified Sick Leave Compensation and
Qualified Family Leave Compensation
Qualified sick leave compensation. For purposes of the
credit for qualified sick and family leave compensation,
qualified sick leave compensation is compensation
(determined without regard to the exclusions under section
3231(e)(1)) paid under the Emergency Paid Sick Leave Act
(EPSLA) or the Emergency Family and Medical Leave
Expansion Act (Expanded FMLA) as enacted under the
FFCRA and amended for purposes of the ARP. See the
qualified sick and family leave compensation paid in 2023 for
leave taken after March 31, 2020, and before April 1, 2021,
credit for qualified sick and family leave compensation paid in
2023 for leave taken after March 31, 2021, and before
October 1, 2021.
Use Form 843 to request abatement of assessed
penalties or interest. Don't request abatement of assessed
penalties or interest on Form CT-1 or Form CT-1 X.
Order in which deposits are applied. Generally, tax
deposits are applied first to the most recent tax liability within
the specified tax period to which the deposit relates. If you
receive an FTD penalty notice, you may designate how your
payment is to be applied in order to minimize the amount of
the penalty. You must respond within 90 days of the date of
the notice. Follow the instructions on the notice you received.
See Rev. Proc. 2001-58 for more information. You can find
Rev. Proc. 2001-58 on page 579 of Internal Revenue Bulletin
Although qualified sick leave compensation and
Trust fund recovery penalty. If taxes that must be withheld
(that is, trust fund taxes) aren't withheld or aren't deposited or
paid to the United States Treasury, the trust fund recovery
penalty may apply. The penalty is 100% of the unpaid trust
fund tax. If these unpaid taxes can't be immediately collected
from the employer or business, the trust fund recovery
penalty may be imposed on all persons who are determined
by the IRS to be responsible for collecting, accounting for, or
paying over these taxes, and who acted willfully in not doing
so. For more information, see Trust Fund Recovery Penalty in
section 11 of Pub. 15. The trust fund recovery penalty won't
apply to any amount of trust fund taxes an employer holds
back in anticipation of any credits they are entitled to.
qualified family leave compensation are defined as
!
CAUTION
compensation determined without regard to the
exclusions under section 3231(e)(1) for purposes of the
credit for qualified sick and family leave compensation, don't
include any compensation otherwise excluded under section
3231(e)(1) when reporting qualified sick leave compensation
and qualified family leave compensation on lines 1, 2, 3, 4, 5,
6, and 7.
EPSLA. Employers with fewer than 500 employees and,
for leave taken after March 31, 2021, and before October 1,
2021, certain governmental employers without regard to
number of employees (except for the federal government and
its agencies and instrumentalities unless described in section
501(c)(1)) are entitled to a credit if they provide paid sick
leave to employees that otherwise meets the requirements of
the EPSLA. Under the EPSLA, as amended for purposes of
the ARP, compensation is qualified sick leave compensation
if paid to employees that are unable to work or telework
before October 1, 2021, because the employee:
Specific Instructions
Final Return
If you stop paying taxable compensation and won't have to
file Form CT-1 in the future, you must file a final return and
check the final return box at the top of Form CT-1 under
“2023.” The final return should be accompanied by a
statement providing the last date on which you paid
1. Is subject to a federal, state, or local quarantine or
isolation order related to COVID-19;
compensation that you reported on Form CT-1, the address
at which the records for your Forms CT-1 will be kept, and the
name of the person keeping the records. If the business has
been transferred to another person, the statement should
include the name and address of the transferee and the date
of the transfer. If the business wasn't transferred or the
transferee isn't known, the statement should so state.
2. Has been advised by a health care provider to
self-quarantine due to concerns related to COVID-19;
3. Is experiencing symptoms of COVID-19 and seeking a
medical diagnosis; or, for leave taken after March 31, 2021,
and before October 1, 2021, is seeking or awaiting the results
of a diagnostic test for, or a medical diagnosis of, COVID-19
(and the employee has been exposed to COVID-19 or the
employee's employer has requested such test or diagnosis),
or the employee is obtaining immunizations related to
COVID-19 or recovering from an injury, disability, illness, or
condition related to such immunization;
Processing of your return may be delayed if you don't
provide the required amounts in the Compensation
!
CAUTION
and Tax columns.
4. Is caring for an individual subject to an order described
Line 1—Tier 1 Employer Tax
in (1) or who has been advised as described in (2);
Enter the compensation (other than tips and sick pay),
including qualified sick leave compensation and qualified
family leave compensation paid in 2023 for leave taken after
March 31, 2021, and before October 1, 2021, subject to Tier
1 Employer tax in the Compensation column. Don't include
qualified sick leave compensation paid in 2023 or qualified
family leave compensation paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021. Multiply by 6.2%
and enter the result in the Tax column. The total amount
listed in the Compensation column for lines 1 and 8
5. Is caring for son or daughter because the school or
place of care for that child has been closed, or the childcare
provider for that child is unavailable, due to COVID-19
precautions; or
6. Is experiencing any other substantially similar
condition specified by the U.S. Department of Health and
Human Services, which for leave taken after March 31, 2021,
and before October 1, 2021, includes to accompany an
individual to obtain immunization related to COVID-19, or to
care for an individual who is recovering from any injury,
disability, illness, or condition related to the immunization.
combined may not be more than $160,200 per employee.
7
Instructions for Form CT-1 (2023)
Son or daughter. A son or daughter must generally have
been under 18 years of age or incapable of self-care because
of a mental or physical disability. A son or daughter includes
a biological child, adopted child, stepchild, foster child, legal
ward, or child for whom the employee assumes parental
status and carries out the obligations of a parent.
daughter, earlier, for more information. For leave taken after
March 31, 2021, and before October 1, 2021, the leave can
be granted for any other reason provided by the EPSLA, as
amended for purposes of the ARP.
For leave taken after March 31, 2020, and before April 1,
2021, the first 10 days for which an employee takes leave
may be unpaid. During this period, employees may use other
forms of paid leave, such as qualified sick leave, accrued sick
leave, annual leave, or other paid time off. After an employee
takes leave for 10 days, the employer provides the employee
paid leave (that is, qualified family leave compensation) for
up to 10 weeks. For leave taken after March 31, 2021, and
before October 1, 2021, the 10-day rule discussed above
doesn't apply and the paid leave can be provided for up to 12
weeks.
Rate of pay and limit on compensation. The rate of pay
must be at least two-thirds of the employee's regular rate of
pay (as determined under the Fair Labor Standards Act of
1938), multiplied by the number of hours the employee would
have otherwise been scheduled to work. For leave taken after
March 31, 2020, and before April 1, 2021, the qualified family
leave compensation can't exceed $200 per day or $10,000 in
the aggregate per employee. For leave taken after March 31,
2021, and before October 1, 2021, the limit resets and the
total qualified family leave compensation can't exceed $200
per day or $12,000 in the aggregate per employee.
Limits on qualified sick leave compensation. The
EPSLA, as amended for purposes of the ARP, provides
different limitations for different circumstances under which
qualified sick leave compensation is paid. For paid sick leave
qualifying under (1), (2), or (3) above, the amount of qualified
sick leave compensation is determined at the employee's
regular rate of pay, but the compensation may not exceed
$511 for any day (or portion of a day) for which the individual
is paid sick leave. For paid sick leave qualifying under (4), (5),
or (6) above, the amount of qualified sick leave compensation
is determined at two-thirds the employee's regular rate of pay,
but the compensation may not exceed $200 for any day (or
portion of a day) for which the individual is paid sick leave.
The EPSLA also limits each individual to a maximum of up to
80 hours of paid sick leave in total for leave taken after March
31, 2020, and before April 1, 2021. The ARP resets this limit
at 80 hours of paid sick leave for leave taken after March 31,
2021, and before October 1, 2021. Therefore, for leave taken
after March 31, 2020, and before April 1, 2021, the maximum
amount of paid sick leave compensation can't exceed $5,110
for an employee for leave under (1), (2), or (3), and it can't
exceed $2,000 for an employee for leave under (4), (5), or
(6). These maximum amounts also reset and apply to leave
taken after March 31, 2021, and before October 1, 2021.
For more information about qualified family leave
For more information about qualified sick leave
Line 2—Tier 1 Employer Medicare Tax
Enter the compensation (other than tips and sick pay),
including qualified sick leave compensation paid in 2023 and
qualified family leave compensation paid in 2023, subject to
Tier 1 Employer Medicare tax in the Compensation column.
Multiply by 1.45% and enter the result in the Tax column.
Qualified family leave compensation. For purposes of
the credit for qualified sick and family leave compensation,
qualified family leave compensation is compensation
(determined without regard to the exclusions under section
3231(e)(1)) paid under the Expanded FMLA as enacted
under the FFCRA and amended for purposes of the ARP.
However, some compensation eligible for the credit should
not be reported as taxable compensation on lines 1, 2, 3, 4,
for qualified sick and family leave compensation paid in 2023
for leave taken after March 31, 2020, and before April 1,
the credit for qualified sick and family leave compensation
paid in 2023 for leave taken after March 31, 2021, and before
October 1, 2021.
Line 3—Tier 2 Employer Tax
Enter the compensation (other than tips), including qualified
sick leave compensation paid in 2023 and qualified family
leave compensation paid in 2023, subject to Tier 2 Employer
tax in the Compensation column. Don't enter more than
$118,800 per employee. Multiply by 13.1% and enter the
result in the Tax column.
Line 4—Tier 1 Employee Tax
Enter the compensation, including tips reported (but
excluding sick pay), qualified sick leave compensation paid in
2023, and qualified family leave compensation paid in 2023,
subject to Tier 1 Employee tax in the Compensation column.
Multiply by 6.2% and enter the result in the Tax column. The
total amount listed in the Compensation column for lines 4
and 10 combined may not be more than $160,200 per
employee.
Expanded FMLA. Employers with fewer than 500
employees and, for leave taken after March 31, 2021, and
before October 1, 2021, certain governmental employers
without regard to number of employees (except for the
federal government and its agencies and instrumentalities
unless described in section 501(c)(1)) are entitled to a credit
under the FFCRA, as amended for purposes of the ARP, if
they provide paid family leave to employees that otherwise
meets the requirements of the Expanded FMLA. For leave
taken after March 31, 2020, and before April 1, 2021,
compensation is qualified family leave compensation if paid
to an employee who has been employed for at least 30
calendar days when an employee is unable to work due to
the need to care for a son or daughter under 18 years of age
or incapable of self-care because of a mental or physical
disability because the school or place of care for that child
has been closed, or the childcare provider for that child is
Stop collecting the 6.2% Tier 1 Employee tax when the
employee's compensation (including sick pay), tips, qualified
sick leave compensation paid in 2023, and qualified family
leave compensation paid in 2023, reach the maximum for the
year ($160,200 for 2023). However, your liability for Tier 1
Employer tax on compensation continues until the
compensation paid in 2023 (including sick pay), but not
including tips, totals $160,200 for the year.
8
Instructions for Form CT-1 (2023)
All compensation (including sick pay) that is subject to Tier
1 Medicare tax is subject to Tier 1 Employee Additional
Medicare Tax if paid in excess of the $200,000 withholding
threshold.
Line 5—Tier 1 Employee Medicare Tax
Enter the compensation, including tips reported (but
excluding sick pay), qualified sick leave compensation paid in
2023, and qualified family leave compensation paid in 2023,
subject to Tier 1 Employee Medicare tax in the
Compensation column. Multiply by 1.45% and enter the
result in the Tax column. For information on reporting tips,
If you’re a railroad employer paying your employees sick
pay, or a third-party payer who didn't notify the employer of
the payments (thereby subject to the employee and employer
tax), make entries on lines 8–12. If you’re subject to only the
employer or employee tax, complete only the applicable
lines. Multiply by the appropriate rates and enter the results in
the Tax column.
Line 6—Tier 1 Employee Additional
Medicare Tax Withholding
Enter the compensation, including tips reported (but
Line 13—Total Tax Based on
excluding sick pay), qualified sick leave compensation paid in
2023, and qualified family leave compensation paid in 2023,
that is subject to Tier 1 Employee Additional Medicare Tax
withholding. You’re required to begin withholding Tier 1
Employee Additional Medicare Tax in the pay period in which
you pay compensation in excess of $200,000 to an employee
and continue to withhold it each pay period until the end of
the calendar year. Tier 1 Employee Additional Medicare Tax
is only imposed on the employee. There is no employer share
of Tier 1 Additional Medicare Tax. All compensation
Compensation
Add lines 1 through 12 and enter the result on line 13.
Line 14—Adjustments to Taxes Based
on Compensation
Don't use line 14 for prior period adjustments. Make
all prior period adjustments on Form CT-1 X.
!
CAUTION
(including sick pay) that is subject to Tier 1 Medicare tax is
subject to Tier 1 Employee Additional Medicare Tax if paid in
excess of the $200,000 withholding threshold.
Enter on line 14:
A fractions-of-cents adjustment (see Adjustment for
•
fractions of cents, later);
Credits for overpayments of penalty or interest paid on tax
•
for earlier years; and
Employee Additional Medicare Tax.
Any uncollected Tier 1 Employee tax, Tier 1 Employee
•
Medicare tax, Tier 1 Employee Additional Medicare Tax, and
Tier 2 Employee tax on tips.
Line 7—Tier 2 Employee Tax
Enter the compensation, including tips reported, qualified
sick leave compensation paid in 2023, and qualified family
leave compensation paid in 2023, subject to Tier 2 Employee
tax in the Compensation column. Only the first $118,800 of
the employee's compensation (including tips, qualified sick
leave compensation paid in 2023, and qualified family leave
compensation paid in 2023) is subject to this tax. Multiply by
4.9% and enter the result in the Tax column. For information
Enter the total of these adjustments in the Tax column. If
you’re reporting both an addition and a subtraction, enter only
the difference between the two on line 14. If the net
adjustment is negative, report the amount on line 14 using a
minus sign, if possible. If your computer software doesn't
allow the use of minus signs, you may use parentheses.
Don't include on line 14 any 2022 overpayment that is
applied to this year's return (this is included on line 20).
Required statement. Except for adjustments for fractions of
cents, explain amounts entered on line 14 in a separate
statement. Include your name, EIN, calendar year of the
return, and “Form CT-1” on each page you attach. Include in
the statement the following information.
Any compensation paid during the current year that
was earned in prior years (reported to the Railroad
!
CAUTION
Retirement Board on Form BA-4, Report of
Creditable Compensation Adjustments) is taxable at the
current year tax rates, unless special timing rules for
nonqualified deferred compensation apply. See Pub.15-A.
Include such compensation with current year compensation
on lines 1–7, as appropriate.
An explanation of the item the adjustment is intended to
•
correct showing the compensation subject to Tier 1 and Tier
2 taxes and their respective tax rates.
The amount of the adjustment.
•
Lines 8–12—Tier 1 Taxes on Sick Pay
The name and account number of any employee from
•
whom employee tax was undercollected or overcollected.
Don't include qualified sick leave compensation paid
How you and the employee have settled any
•
in 2023 or qualified family leave compensation paid
!
undercollection or overcollection of employee tax.
CAUTION
in 2023 on lines 8 through 12.
Adjustment for fractions of cents. If there is a small
difference between the total employee tax (lines 4–7 and 10–
12) and the total actually withheld from employee
compensation including tips, it may be caused by rounding to
the nearest cent each time you figured payroll. The
difference, positive or negative, is your fractions-of-cents
adjustment to be reported on line 14. If the actual amount
withheld is less, report a negative adjustment in the entry
space. If the actual amount is more, report a positive
adjustment.
Enter any sick pay payments during the year that are
subject to Tier 1 taxes, Tier 1 Medicare taxes, and Tier 1
Employee Additional Medicare Tax withholding in the
Compensation column. Multiply by the rate for the line and
enter the result in the Tax column for that line. For Tier 1
Employer taxes, the total amount listed in the Compensation
column for lines 1 and 8 combined may not be more than
$160,200 per employee. For Tier 1 Employee taxes, the total
amount listed in the Compensation column for lines 4 and 10
combined may not be more than $160,200 per employee.
Tier 1 Medicare taxes aren't subject to a dollar limitation.
9
Instructions for Form CT-1 (2023)
If this is the only entry on line 14, you’re not required
to attach a statement explaining the adjustment.
salary reduction contributions. However, the qualified health
plan expenses shouldn't include amounts that the employee
paid for with after-tax contributions. For more information, go
TIP
Line 15—Total Taxes After
Adjustments
You must include the full amount (both the
nonrefundable and refundable portions) of the credit
for qualified sick and family leave compensation in
TIP
Combine the amounts shown on lines 13 and 14 and enter
the result on line 15.
your gross income for the tax year that includes the last day
of any calendar quarter in which a credit is allowed.
Form CT-1 and these instructions use the terms
“nonrefundable” and “refundable” when discussing
credits. The term “nonrefundable” means the portion
TIP
Line 17b—Nonrefundable Portion of
Credit for Qualified Sick and Family
Leave Compensation for Leave Taken
After March 31, 2021, and Before
October 1, 2021
of the credit which is limited by law to the amount of certain
taxes. The term “refundable” means the portion of the credit
which is in excess of those taxes.
Line 16—Nonrefundable Portion of
Credit for Qualified Sick and Family
Leave Compensation for Leave Taken
After March 31, 2020, and Before April
1, 2021
Complete line 17b only if qualified sick leave
compensation and/or qualified family leave
!
CAUTION
compensation was paid in 2023 for leave taken after
March 31, 2021, and before October 1, 2021.
Employers with fewer than 500 employees and certain
governmental employers without regard to number of
employees (except for the federal government and its
agencies and instrumentalities unless described in section
501(c)(1)) are entitled to a credit if they provide paid sick
leave to employees that otherwise meets the requirements of
provide paid family leave to employees that otherwise meets
for purposes of the ARP, for qualified sick and family leave
compensation for leave taken after March 31, 2021, and
before October 1, 2021. For purposes of this credit, qualified
sick leave compensation and qualified family leave
compensation are compensation determined without regard
to the exclusions from the definition of compensation under
section 3231(e)(1), that an employer pays that otherwise
meet the requirements of the EPSLA or Expanded FMLA, as
enacted under the FFCRA and amended for purposes of the
ARP. Enter the nonrefundable portion of the credit for
qualified sick and family leave compensation from Worksheet
2, Step 2, line 2p.
Complete line 16 only if qualified sick leave
compensation and/or qualified family leave
!
CAUTION
compensation was paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021.
Certain private employers with fewer than 500 employees
claim the credit for qualified sick and family leave
compensation for leave taken after March 31, 2020, and
before April 1, 2021. For purposes of this credit, qualified sick
leave compensation and qualified family leave compensation
are compensation (determined without regard to the
exclusions under section 3231(e)(1)) paid under the EPSLA
and Expanded FMLA. Enter the nonrefundable portion of the
credit for qualified sick and family leave compensation from
Worksheet 1, Step 2, line 2j. The credit for qualified sick and
family leave compensation consists of the qualified sick leave
compensation, the qualified family leave compensation, the
qualified health plan expenses allocable to that
compensation, and the Tier 1 Employer Medicare tax
allocable to that compensation. The nonrefundable portion of
the credit is limited to the Tier 1 Employer tax (line 1) and Tier
1 Employer tax—Sick Pay (line 8).
Any credit in excess of the remaining amount of the Tier 1
Employer tax (line 1) and Tier 1 Employer tax—Sick Pay
(line 8) is refundable and reported on Form CT-1, line 23. For
more information on the credit for qualified sick and family
Qualified health plan expenses allocable to qualified
sick and family leave compensation. The credit for
qualified sick leave compensation and qualified family leave
compensation is increased to cover the qualified health plan
expenses that are properly allocable to the qualified leave
compensation for which the credit is allowed. These qualified
health plan expenses are amounts paid or incurred by the
employer to provide and maintain a group health plan but
only to the extent such amounts are excluded from the
employees’ income as coverage under an accident or health
plan. The amount of qualified health plan expenses generally
includes both the portion of the cost paid by the employer
and the portion of the cost paid by the employee with pre-tax
The credit for qualified sick and family leave compensation
consists of the:
Qualified sick leave compensation and/or qualified family
•
leave compensation;
•
•
contributions, subject to the qualified leave compensation
limitations, allocable to the qualified sick and family leave
compensation;
•
contributions, subject to the qualified leave compensation
limitations, allocable to the qualified sick and family leave
compensation; and
Tier 1 Employer tax and Tier 1 Employer Medicare tax
•
allocable to the qualified sick and family leave compensation.
The nonrefundable portion of the credit is limited to the
Tier 1 Employer Medicare tax (line 2) and Tier 1 Employer
Medicare tax—Sick pay (line 9). You can't claim the credit for
leave taken after March 31, 2021, and before October 1,
2021, if you made qualified sick or family leave compensation
10
Instructions for Form CT-1 (2023)
available in a manner that discriminates in favor of highly
compensated employees, full-time employees, or employees
on the basis of employment tenure. See Highly compensated
employee, later, for the definition.
base units, as defined by section 4001(a)(11) of the
Employee Retirement Income Security Act of 1974 (ERISA).
Allocation rules. The amount of collectively bargained
defined benefit pension plan contributions allocated to
qualified sick leave compensation and/or qualified family
leave compensation during a quarter is the pension
contribution rate (expressed as an hourly rate) multiplied by
the number of hours qualified sick leave compensation
and/or qualified family leave compensation was provided to
employees covered under the collective bargaining
agreement during the quarter.
Collectively bargained apprenticeship program contri-
butions. For purposes of qualified sick and family leave
compensation, collectively bargained apprenticeship
program contributions are contributions for a calendar
quarter:
For leave taken after March 31, 2021, and before October
1, 2021, the credit for qualified sick and family leave
compensation is reduced by the amount of the credit allowed
under section 41 (for the credit for increasing research
activities) with respect to compensation taken into account
for determining the credit for qualified sick and family leave
compensation; and any compensation taken into account in
determining the credit for qualified sick and family leave
compensation can't be taken into account as compensation
for purposes of the credits under sections 45A, 45P, 45S, and
51. For leave taken after March 31, 2021, and before October
1, 2021, qualified compensation also doesn't include
compensation that was used as payroll costs in connection
with a Shuttered Venue Operator Grant under section 324 of
the Economic Aid to Hard-Hit Small Businesses, Nonprofits,
and Venues Act; or a restaurant revitalization grant under
section 5003 of the ARP. Employers can receive both a Small
Business Interruption Loan under the Paycheck Protection
Program (PPP) and the credit for qualified sick and family
leave compensation; however, employers can't receive both
loan forgiveness and a credit for the same compensation.
The same compensation can't be treated as both qualified
sick leave compensation and qualified family leave
Paid or incurred by an employer on behalf of its employees
•
to a registered apprenticeship program, which is an
apprenticeship registered under the National Apprenticeship
Act of August 16, 1937, and meets the standards of Federal
Regulations under subpart A of Part 29 and Part 30 of title 29;
Made based on an apprenticeship program contribution
•
rate; and
Required to be made under the terms of a collective
•
bargaining agreement in effect during the quarter.
Apprenticeship program contribution rate. The
apprenticeship program contribution rate is the contribution
rate that the employer is obligated to pay under the terms of a
collective bargaining agreement for benefits under a
registered apprenticeship program, as the rate is applied to
contribution base units, as defined by section 4001(a)(11) of
ERISA.
compensation.
Any credit in excess of the remaining amount of the Tier 1
Employer Medicare tax (line 2) and Tier 1 Employer Medicare
tax—Sick pay (line 9) is refundable and reported on Form
CT-1, line 24b. For more information on the credit for qualified
Allocation rules. The amount of collectively bargained
apprenticeship program contributions allocated to qualified
sick leave compensation and/or qualified family leave
compensation in a quarter is the apprenticeship program
contribution rate (expressed as an hourly rate) multiplied by
the number of hours qualified sick leave compensation
and/or qualified family leave compensation was provided to
employees covered under the collective bargaining
agreement during the quarter.
Qualified health plan expenses allocable to qualified
sick and family leave compensation. The credit for
qualified sick leave compensation and qualified family leave
compensation is increased to cover the qualified health plan
expenses that are properly allocable to the qualified leave
compensation for which the credit is allowed. These qualified
health plan expenses are amounts paid or incurred by the
employer to provide and maintain a group health plan but
only to the extent such amounts are excluded from the
employees' income as coverage under an accident or health
plan. The amount of qualified health plan expenses generally
includes both the portion of the cost paid by the employer
and the portion of the cost paid by the employee with pre-tax
salary reduction contributions. However, qualified health plan
expenses don't include amounts that the employee paid for
with after-tax contributions. For more information, go to
Highly compensated employee. A highly compensated
employee is an employee who meets either of the following
tests.
1. The employee was a 5% owner at any time during the
year or the preceding year.
2. The employee received more than $135,000 in pay for
the preceding year.
You can choose to ignore test (2) if the employee wasn't
also in the top 20% of employees when ranked by pay for the
preceding year.
Collectively bargained defined benefit pension plan
contributions. For purposes of qualified sick and family
leave compensation, collectively bargained defined benefit
pension plan contributions are contributions for a calendar
quarter:
Line 18—Total Nonrefundable Credits
Add lines 16 and 17b. Enter the total on line 18.
Paid or incurred by an employer on behalf of its employees
•
Line 19—Total Taxes After
to a defined benefit plan, as defined in section 414(j), which
meets the requirements of section 401(a);
Adjustments and Nonrefundable
Made based on a pension contribution rate; and
Required to be made under the terms of a collective
•
Credits
•
Subtract line 18 from line 15 and enter the result on line 19.
bargaining agreement in effect during the quarter.
Pension contribution rate. The pension contribution rate
is the contribution rate that the employer is obligated to pay
under the terms of a collective bargaining agreement to a
defined benefit plan, as the rate is applied to contribution
11
Instructions for Form CT-1 (2023)
Line 20—Total Deposits for the Year
Line 28—Balance Due
Enter the total Form CT-1 deposits for the year, including any
overpayment that you applied from filing Form CT-1 X and
any overpayment that you applied from your 2022 return.
If line 19 is more than line 25, enter the difference on line 28.
have to pay if line 28 is under $1. Generally, you should have
a balance due only if your total railroad retirement taxes
based on compensation (line 19) are less than $2,500.
payments made under the accuracy of deposits rule.
Line 23—Refundable Portion of Credit
for Qualified Sick and Family Leave
Compensation for Leave Taken After
March 31, 2020, and Before April 1,
2021
If you were required to make federal tax deposits, pay the
amount shown on line 28 by EFT. If you weren't required to
make federal tax deposits or you're a monthly schedule
depositor making a payment under the accuracy of deposits
rule, you may pay the amount shown on line 28 by EFT,
check, or money order. For more information on electronic
If you pay by EFT, file your return using the address under
Voucher. If you pay by check or money order, make it payable
to “United States Treasury.” Enter your EIN, “Form CT-1,” and
“2023” on your check or money order. Complete Form
CT-1(V) and enclose with Form CT-1.
Complete line 23 only if qualified sick leave
compensation and/or qualified family leave
!
CAUTION
compensation was paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021.
Certain private employers with fewer than 500 employees
claim the credit for qualified sick and family leave
compensation. Enter the refundable portion of the credit for
qualified sick and family leave compensation from Worksheet
1, Step 2, line 2k. The credit for qualified sick and family
leave compensation consists of the qualified sick leave
compensation, the qualified family leave compensation, the
qualified health plan expenses allocable to that
Line 29—Overpayment
If line 25 is more than line 19, enter the difference on line 29.
Never make an entry on both lines 29 and 28. If line 29 is
less than $1, we will send you a refund or apply it to your next
return only if you ask us in writing to do so.
compensation, and the Tier 1 Employer Medicare tax
allocable to that compensation. The refundable portion of the
credit is allowed after the Tier 1 employer taxes from lines 1
and 8 are reduced to zero by nonrefundable credits.
If you deposited more than the correct amount for the year,
you can have the overpayment refunded or applied to your
next return by checking the appropriate box on line 29. Check
only one box on line 29. If you don't check either box or if you
check both boxes, generally we will apply the overpayment to
your next return. Regardless of any boxes you check or don't
check on line 29, we may apply your overpayment to any past
due tax account that is shown in our records under your EIN.
Line 24b—Refundable Portion of
Credit for Qualified Sick and Family
Leave Compensation for Leave Taken
After March 31, 2021, and Before
October 1, 2021
Lines 30–33 and Lines 36–41
The amounts entered on lines 30–33 and lines 36–41 are
amounts that you use on the worksheets at the end of these
instructions to figure certain credits. If you’re claiming these
credits, you must enter the applicable amounts.
Complete line 24b only if qualified sick leave
compensation and/or qualified family leave
!
CAUTION
compensation was paid in 2023 for leave taken after
Complete lines 30–33 only if qualified sick leave
March 31, 2021, and before October 1, 2021.
compensation and/or qualified family leave
!
Employers with fewer than 500 employees and certain
governmental employers without regard to number of
employees (except for the federal government and its
agencies and instrumentalities unless described in section
501(c)(1)) are entitled to a credit if they provide paid sick
leave to employees that otherwise meets the requirements of
provide paid family leave to employees that otherwise meets
for purposes of the ARP, for leave taken after March 31, 2021,
and before October 1, 2021. Enter the refundable portion of
the credit for qualified sick and family leave compensation
the credit is allowed after the Tier 1 employer Medicare taxes
from lines 2 and 9 are reduced to zero by nonrefundable
credits.
CAUTION
compensation was paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021.
Line 30—Qualified Sick Leave
Compensation for Leave Taken After
March 31, 2020, and Before April 1,
2021
Enter the qualified sick leave compensation you paid in 2023
to your employees for leave taken after March 31, 2020, and
before April 1, 2021, including any qualified sick leave
compensation that was above the Tier 1 compensation base
and any qualified sick leave compensation excluded from the
definition of compensation under section 3231(e)(1). This
qualified sick and family leave compensation for leave taken
after March 31, 2020, and before April 1, 2021. For more
information about qualified sick leave compensation, go to
Line 25—Total Deposits and
Refundable Credits
Add lines 20, 23, and 24b. Enter the total on line 25.
12
Instructions for Form CT-1 (2023)
March 31, 2021, and before October 1, 2021. This amount is
Line 31—Qualified Health Plan
Expenses Allocable to Compensation
Reported on Line 30
Line 38—Amounts Under Certain
Collectively Bargained Agreements
Allocable to Qualified Sick Leave
Compensation Reported on Line 36
sick leave compensation paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021. This amount is
program contributions allocable to qualified sick leave
compensation paid in 2023 for leave taken after March 31,
2021, and before October 1, 2021. This amount is also
Line 32—Qualified Family Leave
Compensation for Leave Taken After
March 31, 2020, and Before April 1,
2021
Complete lines 39, 40, and 41 only if qualified family
Enter the qualified family leave compensation you paid in
2023 to your employees for leave taken after March 31, 2020,
and before April 1, 2021, including any qualified family leave
compensation that was above the Tier 1 compensation base
and any qualified family leave compensation excluded from
the definition of compensation under section 3231(e)(1). This
qualified sick and family leave compensation for leave taken
after March 31, 2020, and before April 1, 2021. For more
information about qualified family leave compensation, go to
leave compensation was paid in 2023 for leave taken
!
CAUTION
after March 31, 2021, and before October 1, 2021.
Line 39—Qualified Family Leave
Compensation for Leave Taken After
March 31, 2021, and Before October
1, 2021
Enter the qualified family leave compensation you paid in
2023 to your employees for leave taken after March 31, 2021,
and before October 1, 2021, including any qualified family
leave compensation that was above the Tier 1 compensation
base and any qualified family leave compensation excluded
from the definition of compensation under section 3231(e)(1).
about qualified family leave compensation for leave taken
after March 31, 2021, and before October 1, 2021. This
Line 33—Qualified Health Plan
Expenses Allocable to Compensation
Reported on Line 32
family leave compensation paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021. This amount is
Line 40—Qualified Health Plan
Expenses Allocable to Qualified
Family Leave Compensation Reported
on Line 39
Complete lines 36, 37, and 38 only if qualified sick
leave compensation was paid in 2023 for leave taken
!
CAUTION
after March 31, 2021, and before October 1, 2021.
Line 36—Qualified Sick Leave
Compensation for Leave Taken After
March 31, 2021, and Before October
1, 2021
family leave compensation paid in 2023 for leave taken after
March 31, 2021, and before October 1, 2021. This amount is
Line 41—Amounts Under Certain
Collectively Bargained Agreements
Allocable to Qualified Family Leave
Compensation Reported on Line 39
Enter the qualified sick leave compensation you paid in 2023
to your employees for leave taken after March 31, 2021, and
before October 1, 2021, including any qualified sick leave
compensation that was above the Tier 1 compensation base
and any qualified sick leave compensation excluded from the
definition of compensation under section 3231(e)(1). See the
qualified sick leave compensation for leave taken after March
31, 2021, and before October 1, 2021. This amount is also
program contributions allocable to qualified family leave
compensation paid in 2023 for leave taken after March 31,
2021, and before October 1, 2021. This amount is also
Line 37—Qualified Health Plan
Expenses Allocable to Qualified Sick
Leave Compensation Reported on
Line 36
Part II. Record of Railroad Retirement
Tax Liability
This is a summary of your yearly tax liability, not a summary
of deposits made. If line 19 is less than $2,500, don't
complete Part II or Form 945-A.
sick leave compensation paid in 2023 for leave taken after
13
Instructions for Form CT-1 (2023)
If you’re a monthly schedule depositor, enter your tax
liability for each month and figure the total liability for the year.
If you don't enter your tax liability for each month, the IRS
won't know when you should have made deposits and may
assess an “averaged” FTD penalty. See section 11 of Pub.
15. If your tax liability for any month is negative, don't enter a
negative amount for the month. Instead, enter zero for the
month and subtract that negative amount from your tax
liability for the next month.
for the first payroll payment of the year, but not below zero.
Then reduce the liability for each successive payroll payment
of the year until the nonrefundable portion of the credit is
used. Any credit for qualified sick and family leave
compensation paid in 2023 for leave taken after March 31,
2021, and before October 1, 2021, that is remaining at the
end of the year because it exceeds the Tier 1 employer
Medicare tax reported on Form CT-1, lines 2 and 9, is
claimed on line 24b as a refundable credit. The refundable
portion of the credit doesn't reduce the liability reported on
Part II or Form 945-A.
Adjusting tax liability for nonrefundable credits claimed
on lines 16 and 17b. Monthly schedule depositors and
semiweekly schedule depositors must account for
You may reduce your deposits by the amount of the
nonrefundable credits claimed on lines 16 and 17b when
reporting their tax liabilities on Part II or Form 945-A. The total
tax liability for the year must equal the amount reported on
line 19. Failure to account for the nonrefundable credits on
Part II or Form 945-A may cause Part II or Form 945-A to
report more than the total tax liability reported on line 19.
Don't reduce your monthly tax liability reported on Part II or
your daily tax liability reported on Form 945-A below zero.
Nonrefundable portion of credit for qualified sick and
family leave compensation for leave taken after March
31, 2020, and before April 1, 2021 (line 16). The
nonrefundable portion of the credit for qualified sick and
family leave compensation paid in 2023 for leave taken after
March 31, 2020, and before April 1, 2021, is limited to the
Tier 1 employer taxes reported on Form CT-1, lines 1 and 8,
on compensation paid in the year. In completing Part II or
Form 945-A, you take into account the nonrefundable portion
of the credit for qualified sick and family leave compensation
paid in 2023 against the liability for the first payroll payment of
the year, but not below zero. Then reduce the liability for each
successive payroll payment of the year until the
nonrefundable and refundable portions of the credit
for qualified sick and family leave compensation, as
TIP
discussed earlier under Reducing your deposits for the credit
The amount shown on line V must equal the amount
shown on line 19.
!
CAUTION
If you’re a semiweekly schedule depositor or if you
accumulate $100,000 or more in tax liability on any day in a
deposit period, you must complete Form 945-A and file it with
Form CT-1. Don't complete lines I–V if you file Form 945-A.
The $100,000 tax liability threshold requiring a next-day
deposit is determined before you consider any reduction of
your liability for nonrefundable credits. For more information,
including an example, see frequently asked question 17 at
Third-Party Designee
If you want to allow an employee of your business, a return
preparer, or another third party to discuss your Form CT-1
with the IRS, check the “Yes” box in the Third-Party Designee
section. Also, enter the designee's name, phone number, and
any five digits that person chooses as their personal
identification number (PIN).
nonrefundable portion of the credit is used. Any credit for
qualified sick and family leave compensation paid in 2023 for
leave taken after March 31, 2020, and before April 1, 2021,
that is remaining at the end of the year because it exceeds
the Tier 1 employer taxes reported on Form CT-1, lines 1 and
8, is claimed on line 23 as a refundable credit. The
By checking “Yes” you authorize the IRS to talk to the
person you named (your designee) about any questions we
may have while we process your return. You also authorize
your designee to do all of the following.
refundable portion of the credit doesn’t reduce the liability
reported on Part II or Form 945-A.
Example. Maple Co. is a monthly schedule depositor that
pays employees every Friday. In 2023, Maple Co. had pay
dates every Friday starting on January 6, 2023. Maple Co.
paid qualified sick and family leave compensation on March
10 and March 17 for leave taken after March 31, 2020, and
before April 1, 2021. The nonrefundable portion of the credit
for qualified sick and family leave compensation for the year
is $3,000. On Part II, Maple Co. will use the $3,000 to reduce
the liability for the January 6 pay date, but not below zero. If
any nonrefundable portion of the credit remains, Maple Co.
applies it to the liability for the January 13 pay date, then the
January 20 pay date, and so forth until the entire $3,000 is
used.
Give us any information that is missing from your return.
Call us for information about processing your return.
Respond to certain IRS notices that you have shared with
•
•
•
the designee about math errors and return preparation. The
IRS won't send notices to your designee.
You’re not authorizing the designee to receive any refund
check, bind you to anything (including additional tax liability),
or otherwise represent you before the IRS. If you want to
expand the designee's authority, see Pub. 947.
The authorization will automatically expire 1 year from the
due date (without regard to extensions) for filing your Form
CT-1. If you or your designee wants to revoke this
authorization, send the revocation or withdrawal to the IRS
office at which you file your Form CT-1.
Nonrefundable portion of credit for qualified sick and
family leave compensation for leave taken after March
31, 2021, and before October 1, 2021 (line 17b). The
nonrefundable portion of the credit for qualified sick and
family leave compensation paid in 2023 for leave taken after
March 31, 2021, and before October 1, 2021, is limited to the
Tier 1 employer Medicare tax reported on Form CT-1, lines 2
and 9, on compensation paid during the year. In completing
Part II or Form 945-A, you take into account the
Who Must Sign
The following persons are authorized to sign the return for
each type of business entity.
Sole proprietorship—The individual who owns the
•
business.
Corporation (including a limited liability company
•
nonrefundable portion of the credit for qualified sick and
family leave compensation paid in 2023 against the liability
(LLC) treated as a corporation)—The president, vice
president, or other principal officer duly authorized to sign.
14
Instructions for Form CT-1 (2023)
Partnership (including an LLC treated as a
the preparer was paid to prepare Form CT-1 and isn't an
employee of the filing entity. The preparer must give you a
copy of the return in addition to the copy to be filed with the
IRS.
•
partnership) or unincorporated organization—A
responsible and duly authorized partner, member, or officer
having knowledge of its affairs.
Single-member LLC treated as a disregarded entity
•
If you're a paid preparer, enter your Preparer Tax
for federal income tax purposes—The owner of the LLC or
Identification Number (PTIN) in the space provided. Include
your complete address. If you work for a firm, enter the firm's
name and the EIN of the firm. You can apply for a PTIN online
or by filing Form W-12. For more information about applying
PTIN in place of the EIN of the tax preparation firm.
a principal officer duly authorized to sign.
Trust or estate—The fiduciary.
•
Form CT-1 may also be signed by a duly authorized agent
of the taxpayer if a valid power of attorney has been filed.
Alternative signature method. Corporate officers or duly
authorized agents may sign Form CT-1 by rubber stamp,
mechanical device, or computer software program. For
details and required documentation, see Rev. Proc. 2005-39,
2005-28 I.R.B. 82, available at IRS.gov/irb/
Generally, you’re not required to complete this section if
you’re filing the return as a reporting agent and have a valid
Form 8655 on file with the IRS. However, a reporting agent
must complete this section if the reporting agent offered legal
advice, for example, by advising the client on determining
whether its workers are employees or independent
contractors for federal tax purposes.
Paid Preparer Use Only
A paid preparer must sign Form CT-1 and provide the
information in the Paid Preparer Use Only section of Part I if
15
Instructions for Form CT-1 (2023)
Worksheet 1. Credit for Qualified Sick and Family Leave
Compensation Paid in 2023 for Leave Taken After March 31, 2020,
and Before April 1, 2021
Keep for Your Records
Determine how you will complete this worksheet
If you paid qualified sick leave compensation and/or qualified family leave compensation for leave taken after March 31, 2020, and before April 1,
2021, complete Step 1 and Step 2. Caution: Use Worksheet 2 to figure the credit for qualified sick and family leave compensation paid in 2023
for leave taken after March 31, 2021, and before October 1, 2021.
Step 1.
Step 2.
Figure the Tier 1 Employer Tax
Enter the amount from Form CT-1, line 1 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . .
1a
1b
1c
1a
1b
Enter the amount from Form CT-1, line 8 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 Employer tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Figure the credit for qualified sick and family leave compensation
2a
2a
2a(i) Enter the amount, if any, included on line 2a that is compensation excluded from the
definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . . 2a(i)
2a(ii) Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a(ii)
2b
Qualified health plan expenses allocable to qualified sick leave compensation reported
on Form CT-1, line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b
2c
Tier 1 Employer Medicare tax on qualified sick leave compensation. Multiply line 2a(ii)
by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c
2d
2e
Credit for qualified sick leave compensation. Add lines 2a, 2b, and 2c . . . . . . . . .
2d
2e
2e(i) Enter the amount, if any, included on line 2e that is compensation excluded from the
definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . .
2e(i)
2e(ii) Subtract line 2e(i) from line 2e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e(ii)
2f
Qualified health plan expenses allocable to qualified family leave compensation
reported on Form CT-1, line 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f
2g
Tier 1 Employer Medicare tax on qualified family leave compensation. Multiply
line 2e(ii) by 1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g
2h
2i
Credit for qualified family leave compensation. Add lines 2e, 2f, and 2g . . . . . . .
2h
2i
Credit for qualified sick and family leave compensation. Add lines 2d
and 2h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2j
Nonrefundable portion of credit for qualified sick and family leave
compensation for leave taken after March 31, 2020, and before April 1, 2021.
Enter the smaller of line 1c or line 2i. Enter this amount on Form CT-1, line 16 . . . . . .
2j
2k
Refundable portion of credit for qualified sick and family leave compensation
for leave taken after March 31, 2020, and before April 1, 2021. Subtract line 2j
from line 2i and enter this amount on Form CT-1, line 23 . . . . . . . . . . . . . . . . . . . . . .
2k
16
Instructions for Form CT-1 (2023)
Worksheet 2. Credit for Qualified Sick and Family Leave
Compensation Paid in 2023 for Leave Taken After March 31, 2021,
and Before October 1, 2021
Keep for Your Records
Determine how you will complete this worksheet.
If you paid qualified sick leave compensation and/or qualified family leave compensation for leave taken after March 31, 2021, and before October 1,
2021, complete Step 1 and Step 2. Caution: Use Worksheet 1 to figure the credit for qualified sick and family leave compensation paid in 2023 for leave
taken after March 31, 2020, and before April 1, 2021.
Step 1.
Step 2.
Figure the Tier 1 Employer Medicare Tax
1a
1b
1c
Enter the amount from Form CT-1, line 2 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . . . .
1a
1b
Enter the amount from Form CT-1, line 9 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 Employer Medicare tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
Figure the credit for qualified sick and family leave compensation
2a
Qualified sick leave compensation for leave taken after March 31, 2021, and before
October 1, 2021 (Form CT-1, line 36) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a
2a(i)
Enter the amount, if any, included on line 2a that is compensation excluded from the
definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a(i)
2a(ii) Subtract line 2a(i) from line 2a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a(ii)
2a(iii) Enter the amount, if any, included on line 2a that was not included as compensation on
Form CT-1, lines 1, 4, 8, and 10, because the qualified sick leave compensation was
limited by the Tier 1 compensation base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a(iii)
2a(iv) Subtract line 2a(iii) from line 2a(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a(iv)
2b
Qualified health plan expenses allocable to qualified sick leave compensation taken after
March 31, 2021, and before October 1, 2021 (Form CT-1, line 37) . . . . . . . . . . . . . . . . . 2b
2c
Amounts under certain collectively bargained agreements allocable to qualified sick leave
compensation for leave taken after March 31, 2021, and before October 1, 2021 (Form
CT-1, line 38) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c
2d
2e
Tier 1 Employer tax on qualified sick leave compensation. Multiply line 2a(iv) by 6.2%
(0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d
Tier 1 Employer Medicare tax on qualified sick leave compensation. Multiply line 2a(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2e
2f
2g
Credit for qualified sick leave compensation. Add lines 2a, 2b, 2c, 2d, and 2e . . . . . .
2f
Qualified family leave compensation for leave taken after March 31, 2021, and before
October 1, 2021 (Form CT-1, line 39) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g
2g(i)
Enter the amount, if any, included on line 2g that is compensation excluded from the
definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g(i)
2g(ii) Subtract line 2g(i) from line 2g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2g(ii)
2g(iii) Enter the amount, if any, included on line 2g that was not included as compensation on
Form CT-1, lines 1, 4, 8, and 10, because the qualified family leave compensation was
limited by the Tier 1 compensation base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2g(iii)
2g(iv) Subtract line 2g(iii) from line 2g(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2g(iv)
2h
Qualified health plan expenses allocable to qualified family leave compensation taken after
March 31, 2021, and before October 1, 2021 (Form CT-1, line 40) . . . . . . . . . . . . . . . . . 2h
2i
Amounts under certain collectively bargained agreements allocable to qualified family
leave compensation for leave taken after March 31, 2021, and before October 1, 2021
(Form CT-1, line 41) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2i
2j
Tier 1 Employer tax on qualified family leave compensation. Multiply line 2g(iv) by 6.2%
(0.062) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2j
2k
Tier 1 Employer Medicare tax on qualified family leave compensation. Multiply line 2g(ii) by
1.45% (0.0145) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2k
2l
2m
2n
Credit for qualified family leave compensation. Add lines 2g, 2h, 2i, 2j, and 2k . . . . .
Credit for qualified sick and family leave compensation. Add lines 2f and 2l . . . . . . .
2l
2m
Enter any credit claimed under section 41 for increasing research activities with respect to
any compensation taken into account for the credit for qualified sick and family leave
compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2n
2o
2p
Credit for qualified sick and family leave compensation after adjusting for other
credits. Subtract line 2n from line 2m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2o
2p
2q
Nonrefundable portion of credit for qualified sick and family leave compensation
for leave taken after March 31, 2021, and before October 1, 2021. Enter the smaller of
line 1c or line 2o. Enter this amount on Form CT-1, line 17b . . . . . . . . . . . . . . . . . . . . . .
2q
Refundable portion of credit for qualified sick and family leave compensation for
leave taken after March 31, 2021, and before October 1, 2021. Subtract line 2p from
line 2o and enter this amount on Form CT-1, line 24b . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Instructions for Form CT-1 (2023)