20 CFR § 220.163 - Employee penalty deductions.

---
identifier: "/us/cfr/t20/s220.163"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 220.163 - Employee penalty deductions."
title_number: 20
title_name: "Employees' Benefits"
section_number: "220.163"
section_name: "Employee penalty deductions."
chapter_name: "RAILROAD RETIREMENT BOARD"
subchapter_number: "B"
subchapter_name: "REGULATIONS UNDER THE RAILROAD RETIREMENT ACT"
part_number: "220"
part_name: "DETERMINING DISABILITY"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "45 U.S.C. 231a; 45 U.S.C. 231f."
regulatory_source: "56 FR 12980, Mar. 28, 1991, unless otherwise noted."
cfr_part: "220"
---


# 220.163 Employee penalty deductions.

If the employee earns over $400 in a month and does not report it within the time limit shown in § 220.162(b), a penalty is imposed. The penalty deduction for the first failure to report equals the annuity amount for the first month in which the employee earned over $400. The deduction for a second or later failure to report equals the annuity amount for each month in which the employee earned over $400 and failed to report it on time.