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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
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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  
Future Developments . . . . . . . . . . . . . . . . . . . . . . . . 1  
What's New . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1  
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1  
General Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 2  
Purpose of Form CT-1 . . . . . . . . . . . . . . . . . . . . . 2  
Who Must File . . . . . . . . . . . . . . . . . . . . . . . . . . 2  
Where To File . . . . . . . . . . . . . . . . . . . . . . . . . . . 3  
When To File . . . . . . . . . . . . . . . . . . . . . . . . . . . 3  
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3  
Employer and Employee Taxes . . . . . . . . . . . . . . 4  
Depositing Taxes . . . . . . . . . . . . . . . . . . . . . . . . 4  
Penalties and Interest . . . . . . . . . . . . . . . . . . . . . 6  
Specific Instructions . . . . . . . . . . . . . . . . . . . . . . . . . 7  
Third-Party Designee . . . . . . . . . . . . . . . . . . . . . . . 14  
Who Must Sign . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14  
Paid Preparer Use Only . . . . . . . . . . . . . . . . . . . . . . 15  
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  
2023. For more information, see the instructions for line 16,  
line 17b, line 23, and line 24b, later.  
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16  
Worksheet 2. Credit for Qualified Sick and Family  
Leave Compensation Paid in 2023 for Leave  
Taken After March 31, 2021, and Before  
Use Worksheet 1 to figure the credit for leave taken after  
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.  
October 1, 2021 . . . . . . . . . . . . . . . . . . . . . . . . 17  
Future Developments  
For the latest information about developments related to  
Form CT-1 and its instructions, such as legislation enacted  
after they were published, go to IRS.gov/CT1.  
What's New  
Changes to tax rates and compensation bases. For the  
2023 tax rates and compensation bases, see Employer and  
Employee Taxes, later.  
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  
reporting agent, go to IRS.gov/OutsourcingPayrollDuties for  
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.  
Form CT-1 X or go to IRS.gov/CorrectingEmploymentTaxes.  
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, go to EFTPS.gov or call 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.  
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  
and family leave compensation, see the line 1 instructions,  
later. For more information about this credit, see the line 16  
and line 17b instructions, later. Because this credit is  
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,  
reporting, and paying over employment taxes.  
Pub. 15-A contains specialized and detailed employment  
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  
treatment of various types of noncash compensation.  
Pub. 915 contains the federal income tax rules for social  
security benefits and equivalent Tier 1 railroad retirement  
benefits.  
The Railroad Retirement Board (RRB) website at RRB.gov  
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  
IRS.gov/Forms. Otherwise, you can go to IRS.gov/  
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 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  
2
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  
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.  
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  
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  
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.  
A few exceptions are described later under Exceptions.  
Under a workers' compensation law,  
Under section 2(a) of the Railroad Unemployment  
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  
More than 6 months after the calendar month the  
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.  
3
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 to employers, is available at IRS.gov/Forms.  
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  
under Exceptions to the Deposit Rules, later. The terms  
“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  
taxes. See the table under Employer and Employee Taxes,  
earlier, for the tax rates and compensation bases. See Tips,  
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  
4
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.  
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.  
!
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  
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.  
See Treasury Decision 9405, available at IRS.gov/irb/  
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  
$100,000 Next-Day Deposit Rule.  
$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)  
   
line 16 and line 17b, later, for more information on this credit.  
For more information on reducing deposits, see Notice 2020-  
22, 2020-17 I.R.B. 664, available at IRS.gov/irb/  
instructions for Part II, later, for instructions on how to adjust  
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  
EFTPS or to enroll in EFTPS, go to EFTPS.gov or call  
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  
!
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  
instructions for line 16 for information about the credit for  
qualified sick and family leave compensation paid in 2023 for  
leave taken after March 31, 2020, and before April 1, 2021,  
and the instructions for line 17b for information about the  
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  
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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.  
unavailable, due to a public health emergency. See Son or  
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  
compensation, go to IRS.gov/PLC.  
For more information about qualified sick leave  
Line 2—Tier 1 Employer Medicare Tax  
compensation, go to IRS.gov/PLC.  
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,  
5, 6, and 7. See the Caution, earlier, for more information.  
See the instructions for line 16 for information about the credit  
for qualified sick and family leave compensation paid in 2023  
for leave taken after March 31, 2020, and before April 1,  
2021, and the instructions for line 17b for information about  
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,  
see Tips, earlier.  
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  
Go to IRS.gov/ADMTfaqs for more information on Tier 1  
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  
on reporting tips, see Tips, earlier.  
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  
the EPSLA, as amended for purposes of the ARP, and/or  
provide paid family leave to employees that otherwise meets  
the requirements under the Expanded FMLA, as amended  
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  
that provide paid sick leave under the EPSLA and/or provide  
paid family leave under the Expanded FMLA are eligible to  
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  
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  
leave compensation, go to IRS.gov/PLC.  
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  
sick and family leave compensation, go to IRS.gov/PLC.  
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.  
Otherwise, see the instructions for line 29, later. You don't  
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.  
However, see Accuracy of Deposits Rule, earlier, regarding  
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  
payment options, go to IRS.gov/Payments.  
If you pay by EFT, file your return using the address under  
Where To File, earlier. Don't file Form CT-1(V), Payment  
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  
that provide paid sick leave under the EPSLA and/or provide  
paid family leave under the Expanded FMLA are eligible to  
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  
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  
the EPSLA, as amended for purposes of the ARP, and/or  
provide paid family leave to employees that otherwise meets  
the requirements under the Expanded FMLA, as amended  
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  
from Worksheet 2, Step 2, line 2q. The refundable portion of  
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  
amount is also entered on Worksheet 1, Step 2 , line 2a. See  
the instructions for line 16 for information about the credit for  
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  
also entered on Worksheet 2, Step 2, line 2b.  
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  
Enter the qualified health plan expenses allocable to qualified  
sick leave compensation paid in 2023 for leave taken after  
March 31, 2020, and before April 1, 2021. This amount is  
also entered on Worksheet 1, Step 2, line 2b.  
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  
entered on Worksheet 2, Step 2, line 2c.  
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  
amount is also entered on Worksheet 1, Step 2, line 2e. See  
the instructions for line 16 for information about the credit for  
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).  
See the instructions for line 17b, earlier, for more information  
about qualified family leave compensation for leave taken  
after March 31, 2021, and before October 1, 2021. This  
amount is also entered on Worksheet 2, Step 2, line 2g.  
Line 33—Qualified Health Plan  
Expenses Allocable to Compensation  
Reported on Line 32  
Enter the qualified health plan expenses allocable to qualified  
family leave compensation paid in 2023 for leave taken after  
March 31, 2020, and before April 1, 2021. This amount is  
also entered on Worksheet 1, Step 2, line 2f.  
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  
Enter the qualified health plan expenses 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 entered on Worksheet 2, Step 2, line 2h.  
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  
instructions for line 17b, earlier, for more information about  
qualified sick leave compensation for leave taken after March  
31, 2021, and before October 1, 2021. This amount is also  
entered on Worksheet 2, Step 2, line 2a.  
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  
entered on Worksheet 2, Step 2, line 2i.  
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.  
Enter the qualified health plan expenses allocable to qualified  
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  
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  
for a PTIN online, go to IRS.gov/PTIN. You can't use your  
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  
Qualified sick leave compensation reported on Form CT-1, line 30 . . . . . . . . . . . . . . .  
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  
Qualified family leave compensation reported on Form CT-1, line 32 . . . . . . . . . . . . .  
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)