Publication of the Tier 2 Tax Rates

---
identifier: "/us/fr/04-26839"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Publication of the Tier 2 Tax Rates"
title_number: 0
title_name: "Federal Register"
section_number: "04-26839"
section_name: "Publication of the Tier 2 Tax Rates"
positive_law: false
currency: "2004-12-07"
last_updated: "2004-12-07"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "04-26839"
document_type: "notice"
publication_date: "2004-12-07"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
fr_citation: "69 FR 70751"
fr_volume: 69
fr_action: "Notice."
---


#  Publication of the Tier 2 Tax Rates

**ACTION:**

Notice.

**SUMMARY:**

Publication of the tier 2 tax rates for calendar year 2005 as required by section 3241(d) of the Internal Revenue Code (26 U.S.C. 3241). Tier 2 taxes on railroad employees, employers, and employee representatives (a group unique to the railroad industry) fund a private pension benefit of the railroad retirement system.

**DATES:**

The tier 2 tax rates for calendar year 2005 apply to compensation paid in calendar year 2005.

**FOR FURTHER INFORMATION CONTACT:**

Margaret A. Owens, CC:TEGE:EOEG:ET1, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 20224, Telephone Number (202) 622-6040 (not a toll-free number).

*Tier 2 Tax Rates:* The tier 2 tax rate for 2005 under § 3201(b) on employees is 4.4 percent of compensation. The tier 2 tax rate for 2005 under § 3221(b) on employers is 12.6 percent of compensation. The tier 2 tax rate for 2005 under § 3211(b) on employee representatives is 12.6 percent of compensation.

Dated: December 1, 2004.

Nancy Marks,

Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).