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                                                                                                               Department of the Treasury
                                                                                                               Internal Revenue Service
2022

Instructions for Form CT-1

Employer's Annual Railroad Retirement Tax Return

Section references are to the Internal Revenue Code unless                    qualified sick and family leave compensation in 2022 for 
otherwise noted.                                                              leave taken after March 31, 2020, and before October 1, 
                                                                              2021, are eligible to claim a credit on Form CT-1 filed for 
Contents                                                               Page
                                                                              2022. For more information, see the instructions for line 16, 
Future Developments      . . . . . . . . . . . . . . . . . . . . . . . .   1  line 17b line 23, , and line 24b, later.
What's New   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
                                                                              Use Worksheet 1 to figure the credit for leave taken after 
Reminders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2  March 31, 2020, and before April 1, 2021. Use Worksheet 2 
General Instructions   . . . . . . . . . . . . . . . . . . . . . . . . .   3  to figure the credit for leave taken after March 31, 2021, and 
Purpose of Form CT-1           . . . . . . . . . . . . . . . . . . . . .   3  before October 1, 2021. For more information about the 
Who Must File        . . . . . . . . . . . . . . . . . . . . . . . . . .   4  credit for qualified sick and family leave compensation, go to 
                                                                              IRS.gov/PLC.
Where To File      . . . . . . . . . . . . . . . . . . . . . . . . . . .   4
When To File       . . . . . . . . . . . . . . . . . . . . . . . . . . .   4  The COVID-19 related employee retention credit has ex-
                                                                              pired.  The employee retention credit enacted under the 
Definitions    . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4  Coronavirus Aid, Relief, and Economic Security (CARES) Act 
Employer and Employee Taxes . . . . . . . . . . . . . .                    5  and amended and extended by the Taxpayer Certainty and 
Depositing Taxes         . . . . . . . . . . . . . . . . . . . . . . . .   6  Disaster Tax Relief Act of 2020 was limited to qualified 
Penalties and Interest . . . . . . . . . . . . . . . . . . . . .           8  compensation paid after March 12, 2020, and before July 1, 
Specific Instructions  . . . . . . . . . . . . . . . . . . . . . . . . .   8  2021. The employee retention credit under section 3134 of 
                                                                              the Internal Revenue Code, as enacted by the ARP and 
Third-Party Designee     . . . . . . . . . . . . . . . . . . . . . . .     17 amended by the Infrastructure Investment and Jobs Act, was 
Who Must Sign . . . . . . . . . . . . . . . . . . . . . . . . . . . .      17 limited to compensation paid after June 30, 2021, and before 
Paid Preparer Use Only     . . . . . . . . . . . . . . . . . . . . . .     17 October 1, 2021, unless the employer was a recovery startup 
Worksheet 1. Credit for Qualified Sick and Family                             business. An employer that was a recovery startup business 
Leave Compensation Paid in 2022 for Leave                                     could also claim the employee retention credit for 
Taken After March 31, 2020, and Before April                                  compensation paid after September 30, 2021, and before 
1, 2021      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   18 January 1, 2022.
Worksheet 2. Credit for Qualified Sick and Family                             Credit for COBRA premium assistance payments is limi-
Leave Compensation Paid in 2022 for Leave                                     ted to periods of coverage beginning on or after April 1, 
Taken After March 31, 2021, and Before                                        2021, through periods of coverage beginning on or be-
October 1, 2021 . . . . . . . . . . . . . . . . . . . . . . . .            19 fore September 30, 2021. Section 9501 of the ARP 
Worksheet 3. COBRA Premium Assistance                                         provides for COBRA premium assistance in the form of a full 
Credit   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     20 reduction in the premium otherwise payable by certain 
                                                                              individuals and their families who elect COBRA continuation 
Future Developments                                                           coverage due to a loss of coverage as the result of a 
                                                                              reduction in hours or an involuntary termination of 
For the latest information about developments related to 
                                                                              employment (assistance eligible individuals). This COBRA 
Form CT-1 and its instructions, such as legislation enacted 
                                                                              premium assistance is available for periods of coverage 
after they were published, go to IRS.gov/CT1.
                                                                              beginning on or after April 1, 2021, through periods of 
What's New                                                                    coverage beginning on or before September 30, 2021. A 
                                                                              premium payee is entitled to the COBRA premium 
Changes to tax rates and compensation bases.                     For the      assistance credit at the time an eligible individual elects 
2022 tax rates and compensation bases, see Employer and                       coverage. Therefore, due to the COBRA notice and election 
Employee Taxes, later.                                                        period requirements (generally, employers have 60 days to 
The COVID-19 related credit for qualified sick and fami-                      provide notice and assistance eligible individuals have 60 
ly leave compensation is limited to leave taken after                         days to elect coverage), January 2022 was generally the end 
March 31, 2020, and before October 1, 2021.                  Generally,       of the period in which an assistance eligible individual would 
the credit for qualified sick and family leave compensation,                  have elected coverage. Under some rare circumstances, it 
as enacted under the Families First Coronavirus Response                      may be possible for a premium payee to become entitled to 
Act (FFCRA) and amended and extended by the                                   the COBRA premium assistance credit after January 2022. In 
COVID-related Tax Relief Act of 2020, for leave taken after                   these rare instances, the credit is still claimed for Form CT-1 
March 31, 2020, and before April 1, 2021, and the credit for                  filed for 2022. For more information about claiming the 
qualified sick and family leave compensation under sections                   COBRA premium assistance credit, see the instructions for 
3131, 3132, and 3133 of the Internal Revenue Code, as                         line 17c line 17d, , and line 24c, later.
enacted under the American Rescue Plan Act of 2021 (the                       Use Worksheet 3 to figure the credit for COBRA premium 
ARP), for leave taken after March 31, 2021, and before                        assistance payments. For more information on COBRA 
October 1, 2021, have expired. However, employers that pay                    premium assistance payments and the credit, see Notice 

Dec 21, 2022                                                           Cat. No. 16005H

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2021-31, 2021-23 I.R.B. 1173, available at IRS.gov/irb/ until the period beginning on January 1, 2021, and ending on
2021-23_IRB#NOT-2021-31 and Notice 2021-46, 2021-33 December 31, 2021. For more information about the deferral
I.R.B. 303, available at IRS.gov/irb/ of the Tier 1 employee taxes, see Notice 2020 65, 2020 38 ‐ ‐
2021-33_IRB#NOT-2021-46. I.R.B. 567, available at IRS.gov/irb/
2020-38_IRB#NOT-2020-65 and Notice 2021-11, 2021-06
Advance payment of COVID-19 credits ended. Although
I.R.B. 827, available at IRS.gov/irb/
you may pay qualified sick and family leave compensation in
2021-06_IRB#NOT-2021-11. Also see Paying the deferred
2022 for leave taken after March 31, 2020, and before
amount of the Tier 1 employee taxes and How to pay the
October 1, 2021, or provide COBRA premium assistance
deferred amount of Tier 1 employer and employee taxes,
payments in 2022, you may no longer request an advance
later, for information about paying the deferred amount of the
payment of any credit on Form 7200, Advance Payment of
Tier 1 employee taxes.
Employer Credits Due to COVID-19.
Paying the deferred amount of the Tier 1 employer tax-
Notice 2021-65 effect on deposit schedule. If you
es. One-half of the Tier 1 employer taxes was due by
became a semiweekly schedule depositor for 2022 under the
December 31, 2021, and the remainder was due by
$100,000 Next-Day Deposit Rule solely as a result of the
December 31, 2022. Because both December 31, 2021, and
relief provided in Notice 2021-65, 2021-51 I.R.B. 880,
December 31, 2022, were nonbusiness days, payments
available at IRS.gov/irb/2021-51_IRB#NOT-2021-65,
made on the next business day will be considered timely.
regarding the early termination of the employee retention
Any payments or deposits you made before December 31,
credit for the fourth quarter of 2021, you may be converted
2021, were first applied against your payment due on
back to a monthly schedule depositor by contacting the IRS.
December 31, 2021, and then applied against your payment
You may continue to deposit in accordance with your status
due on December 31, 2022. For example, if your Tier 1
as a monthly schedule depositor, but you may receive a
employer taxes for 2020 were $20,000 and you deposited
system-generated failure-to-deposit (FTD) penalty notice
after you file your Form CT-1. Contact the IRS at the toll-free $5,000 of the $20,000 during 2020 and you deferred $15,000
on Form CT-1, line 21, then you were required to pay $5,000
number on your FTD penalty notice to request abatement of
by December 31, 2021, and must pay $10,000 by December
the FTD penalty and to be converted back to a monthly
31, 2022. However, if your Tier 1 employer taxes for 2020
schedule depositor.
were $20,000 and you deposited $15,000 of the $20,000
Reminders during 2020 and you deferred $5,000 on Form CT-1, line 21,
then you didn't need to pay any deferred amount by
Deferral of the Tier 1 employer taxes expired. The December 31, 2021, because 50% of the amount that could
CARES Act allowed employers to defer the deposit and have been deferred ($10,000) was already paid and was first
payment of the Tier 1 employer taxes reported on lines 1 and applied against your payment that was due on December 31,
8. The deferred amount of the Tier 1 employer taxes was 2021. Accordingly, you were required to pay the $5,000
only available for deposits due on or after March 27, 2020, deferral by December 31, 2022. Payment of the deferral isn't
and before January 1, 2021, as well as deposits and reported on Form CT-1. For additional information, go to
payments due after January 1, 2021, that were required for IRS.gov/ETD.
compensation paid on or after March 27, 2020, and before
January 1, 2021. One half of the Tier 1 employer taxes was ‐ Paying the deferred amount of the Tier 1 employee tax-
due by December 31, 2021, and the remainder was due by es. The due date for the withholding and payment of the Tier
December 31, 2022. Because both December 31, 2021, and 1 employee taxes was postponed until the period beginning
December 31, 2022, were nonbusiness days, payments on January 1, 2021, and ending on December 31, 2021. The
made on the next business day will be considered timely. employer was required to withhold and pay the total deferred
Any payments or deposits you made before December 31, Tier 1 employee taxes ratably from compensation paid to the
2021, were first applied against your payment due on employee between January 1, 2021, and December 31,
December 31, 2021, and then applied against your payment 2021. If necessary, the employer was allowed to make
due on December 31, 2022. For more information about the arrangements to otherwise collect the total deferred taxes
deferral of employment tax deposits, go to IRS.gov/ETD. See from the employee. The employer was liable to pay the
Paying the deferred amount of the Tier 1 employer taxes and deferred taxes to the IRS and was required to do so before
How to pay the deferred amount of Tier 1 employer and January 1, 2022, to avoid interest, penalties, and additions to
employee taxes, later, for information about paying the tax on those amounts. Because January 1, 2022, was a
deferred amount of the Tier 1 employer taxes. nonbusiness day, payments made on January 3, 2022, were
considered timely. Payment of the deferral isn't reported on
Deferral of the Tier 1 employee taxes expired. The Form CT-1. For more information about the deferral of the
Presidential Memorandum on Deferring Payroll Tax Tier 1 employee taxes, see Notice 2020-65 and Notice
Obligations in Light of the Ongoing COVID 19 Disaster, ‐ 2021-11.
issued on August 8, 2020, directed the Secretary of the
Treasury to defer the withholding, deposit, and payment of How to pay the deferred amount of Tier 1 employer and
the Tier 1 employee taxes reported on lines 4 and 10 on employee taxes. You may pay the amount you owe
compensation paid during the period from September 1, electronically using the Electronic Federal Tax Payment
2020, through December 31, 2020. The deferral of the System (EFTPS) or by a check or money order. The
withholding and payment of the Tier 1 employee taxes was preferred method of payment is EFTPS. For more
available for employees whose applicable compensation information, go to EFTPS.gov or call 800-555-4477. To
paid for a biweekly pay period were less than $4,000, or the contact EFTPS using Telecommunications Relay Services
equivalent threshold amount for other pay periods. The (TRS) for people who are deaf, hard of hearing, or have a
COVID-related Tax Relief Act of 2020 deferred the due date speech disability, dial 711 and then provide the TRS
for the withholding and payment of the Tier 1 employee taxes assistant the 800-555-4477 number above or 800-733-4829.
To pay the deferred amount using EFTPS, select Form CT-1,

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calendar year 2020, and the option to pay the deferred • Pub. 15 contains information for withholding, depositing,
amount. reporting, and paying over employment taxes.
If you pay by check or money order, include a 2020 Form • Pub. 15-A contains specialized and detailed employment
CT-1(V), Payment Voucher. The 2020 Form CT-1(V) is on tax information supplementing the basic information provided
page 3 of Form CT-1 and is available at IRS.gov/CT1 (select in Pub. 15.
the link for "All Form CT-1 Revisions" under "Other Items You • Pub. 15-B contains information about the employment tax
May Find Useful"). Make the check or money order payable treatment of various types of noncash compensation.
to "United States Treasury." Enter your EIN, "Form CT-1," • Pub. 915 contains the federal income tax rules for social
and "2020" on your check or money order. security benefits and equivalent Tier 1 railroad retirement
benefits.
Payments should be sent to: The Railroad Retirement Board (RRB) website at RRB.gov
•
Department of the Treasury contains additional employer reporting information and
Internal Revenue Service instructions.
Cincinnati, OH 45999-0030 How to get forms and publications. You can download or
print most of the forms and publications you may need at
For more information about the deferral of Tier 1 employer IRS.gov/Forms. Otherwise, you can go to IRS.gov/
and employee taxes, go to IRS.gov/ETD and see Notice OrderForms to place an order and have forms mailed to you.
2020-65 and Notice 2021-11. The IRS will process your order as soon as possible. Don't
resubmit requests you've already sent us. You can get forms
Outsourcing payroll duties. Generally, as an employer,
and publications faster online.
you’re responsible to ensure that tax returns are filed and
deposits and payments are made, even if you contract with a Where can you get telephone help? You can call the IRS
third party to perform these acts. You remain responsible if Business and Specialty Tax Line at 800-829-4933 or
the third party fails to perform any required action. Before you 800-829-4059 (TDD/TTY for persons who are deaf, hard of
choose to outsource any of your payroll and related tax hearing, or have a speech disability) Monday–Friday from
duties (that is, withholding, reporting, and paying over 7:00 a.m. to 7:00 p.m. local time (Alaska and Hawaii follow
income taxes and taxes imposed by the Railroad Retirement Pacific time) for answers to your questions about completing
Tax Act) to a third-party payer, such as a payroll service Form CT-1 or tax deposit rules.
provider or reporting agent, go to IRS.gov/
OutsourcingPayrollDuties for helpful information on this topic. Photographs of Missing Children
For more information on the different types of third-party The IRS is a proud partner with the National Center for
payer arrangements, see section 16 of Pub. 15. Missing & Exploited Children® (NCMEC). Photographs of
missing children selected by the Center may appear in
Correcting a previously filed Form CT-1. If you discover
instructions on pages that would otherwise be blank. You can
an error on a previously filed Form CT-1, make the correction
help bring these children home by looking at the photographs
using Form CT-1 X. Form CT-1 X is filed separately from
and calling 1-800-THE-LOST (1-800-843-5678) if you
Form CT-1. For more information, see the Instructions for
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
an address change. General Instructions

Federal tax deposits must be made by electronic funds Purpose of Form CT-1
transfer (EFT). You must use EFT to make all federal tax These instructions give you some background information
deposits. Generally, an EFT is made using EFTPS. If you about Form CT-1. They tell you who must file Form CT-1,
don't want to use EFTPS, you can arrange for your tax how to complete it line by line, and when and where to file it.
professional, financial institution, payroll service, or other
trusted third party to make electronic deposits on your behalf. Use Form CT-1 to report taxes imposed by the Railroad
Also, you may arrange for your financial institution to initiate a Retirement Tax Act (RRTA). Use Form 941, Employer's
same-day wire payment on your behalf. EFTPS is a free QUARTERLY Federal Tax Return, or, if applicable, Form
service provided by the Department of the Treasury. 944, Employer's ANNUAL Federal Tax Return, to report
Services provided by your tax professional, financial federal income taxes withheld from your employees' wages
institution, payroll service, or other third party may have a and other compensation.
fee. In accordance with Notice 2021 24, 2021 18 I.R.B. 1122, ‐ ‐
To get more information about EFTPS or to enroll in available at IRS.gov/irb/2021-18_IRB#NOT-2021-24, as
EFTPS, go to EFTPS.gov or call 800-555-4477. To contact modified by Notice 2021-65, you may have reduced deposits
EFTPS using TRS for people who are deaf, hard of hearing, of employment taxes otherwise required to be made that are
or have a speech disability, dial 711 and then provide the reported on Form 941 (generally, income tax withholding) in
TRS assistant the 800-555-4477 number above or anticipation of claiming the credit for qualified sick and family
800-733-4829. Additional information about EFTPS is also leave compensation paid in 2022 for leave taken after March
available in Pub. 966. 31, 2020, and before October 1, 2021, and/or the COBRA
Paid preparers. If you use a paid preparer to complete premium assistance credit. For more information about
Form CT-1, the paid preparer must complete and sign the qualified sick and family leave compensation, see the line 1
paid preparer's section of Form CT-1. instructions, later. For more information about these credits,
see the line 16 line 17b, , and line 17c instructions, later.
Additional information. For more information, see one of Because these credits are reported when the 2022 Form
the resources discussed next. CT-1 is filed in 2023, a reduction in deposits of income tax
withholding as described above may have resulted in the

Instructions for Form CT-1 (2022) -3-

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issuance of a balance due notice and the imposition of Department of the Treasury
penalties and interest when the Form 941 quarterly return Internal Revenue Service Center
was processed. Kansas City, MO 64999-0048
If you reduced your deposits of employment taxes
reported on Form 941 in anticipation of the credit for qualified When To File
sick and family leave compensation paid in 2022 for leave File Form CT-1 by February 28, 2023.
taken after March 31, 2020, and before October 1, 2021,
and/or the COBRA premium assistance credit for quarters in Definitions
2022, and this resulted in those amounts being included as a The terms “employer” and “employee” used in these
balance due in a notice, contact us as soon as possible by instructions are defined in section 3231 and in its regulations.
either (1) writing to the address shown on your notice, or (2)
calling the telephone number shown on your notice. If you Compensation
contact us in writing, include a copy of your notice and the Compensation means payment in money, meaning currency
amount of employment tax deposits reported on Form 941 issued by a recognized authority as a medium of exchange,
that you reduced in anticipation of the credit for qualified sick for services performed as an employee of one or more
and family leave compensation paid in 2022 for leave taken employers. It includes payment for time lost as an employee.
after March 31, 2020, and before October 1, 2021, and/or the A few exceptions are described later under Exceptions.
COBRA premium assistance credit. Whether you owe tax,
penalties, and interest will depend upon the credits properly Group-term life insurance. Include in compensation the
claimed on Form CT-1. cost of group-term life insurance over $50,000 you provide to
an employee. This amount is subject to Tier 1 and Tier 2
Who Must File taxes, but not to federal income tax withholding. Include this
amount on your employee's Form W-2, Wage and Tax
For purposes of these instructions, all references to Statement.
TIP "sick pay" mean ordinary sick pay, not “qualified sick
leave compensation.” Former employees for whom you paid the cost of
group-term life insurance over $50,000 must pay the
File Form CT-1 if you paid one or more employees employee's share of these taxes with their Form 1040, U.S.
compensation subject to tax under RRTA. Individual Income Tax Return, or Form 1040-SR, U.S. Tax
A payer of sick pay (including a third party) must file Form Return for Seniors. You’re not required to collect those taxes.
CT-1 if the sick pay is subject to Tier 1 railroad retirement For former employees, you must include on Form W-2 the
taxes. Include sick pay payments on lines 8–11 and, if the part of compensation that consists of the cost of group-term
withholding threshold is met, line 12 of Form CT-1. Follow the life insurance over $50,000. You must also separately report
reporting procedures for sick pay reporting in section 6 of on Form W-2 the amount of railroad retirement taxes owed
Pub. 15-A. by the former employee for coverage provided after
separation from service. For more information, see section 2
If a third-party payer of sick pay is also paying qualified of Pub. 15-B and the General Instructions for Forms W-2 and
sick leave compensation on behalf of an employer, the third W-3.
party would be making the payments as an agent of the
Timing. Compensation is considered paid when it is actually
employer. The employer is required to do the reporting and
paid or when it is constructively paid. It is constructively paid
payment of railroad retirement taxes with respect to the
when it is set apart for the employee, or credited to an
qualified sick leave compensation and claim the credit for the
account the employee can control, without any substantial
qualified sick leave compensation unless the employer has
limit or condition on how and when the payment is to be
an agency agreement with the third-party payer that requires
made.
the third-party payer to do the collecting, reporting, and/or
paying or depositing railroad retirement taxes on the qualified Any compensation paid during the current year that was
sick leave compensation. If the employer has an agency earned in a prior year is taxable at the current year's tax
agreement with the third-party payer, the third-party payer rates; you must include the compensation with the current
includes the qualified sick leave compensation on the Form year's compensation on Form CT-1, lines 1–12, as
CT-1 filed by the third party and claims the sick leave credit appropriate. An exception applies to nonqualified deferred
on behalf of the employer on Form CT-1. 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 compensation plans in section 5 of Pub. 15-A.
each year, even if you didn’t pay taxable compensation
during the year, until you file a final return. Exceptions. Compensation doesn't include the following.
• Certain benefits provided to or on behalf of an employee if
Disregarded entities and qualified subchapter S subsid- at the time the benefits are provided it is reasonable to
iaries (QSubs). Eligible single-owner disregarded entities believe the employee can exclude such benefits from
and QSubs are treated as separate entities for employment income. For information on what benefits are excludable, see
tax purposes. Eligible single-member entities that haven’t Pub. 15-B. Examples of this type of benefit include:
elected to be taxed as corporations must report and pay
1. Certain employee achievement awards under section
employment taxes on compensation paid to their employees
74(c),
using the entities' own names and employer identification
numbers (EINs). See Regulations sections 1.1361-4(a)(7) 2. Certain scholarship and fellowship grants under
and 301.7701-2(c)(2)(iv). section 117,
3. Certain fringe benefits under section 132, and
Where To File
Send Form CT-1 to:

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4. Employer payments to an Archer MSA under section individual at the same time and pay that individual through a
220 or health savings accounts (HSAs) under section 223. common paymaster that is one of the corporations, the
• Stock or stock options. corporations are considered a single employer. They have to
• Payments made specifically for traveling or other bona fide pay, in total, no more in railroad retirement taxes than a
and necessary expenses that meet the rules in the single employer would. See Regulations section
regulations under section 62. 31.3121(s)-1 for more information.
• Payments for services performed by a nonresident alien
Successor employers. Successor employers should see
temporarily present in the United States as a nonimmigrant
section 3231(e)(2)(C) and Pub. 15 to see if they can use the
under subparagraphs (F), (J), (M), or (Q) of the Immigration
predecessor's compensation paid against the maximum
and Nationality Act.
compensation bases.
• Compensation under $25 earned in any month by an
employee in the service of a local lodge or division of a Employee Taxes
railway-labor-organization employer.
You must withhold the employee's part of Tier 1 and Tier 2
Exceptions for sickness or accident disability
taxes. See the table under Employer and Employee Taxes,
payments. For purposes of employee and employer Tier 1
earlier, for the tax rates and compensation bases. See Tips,
taxes, compensation doesn't include sickness or accident
later, for information on the employee tax on tips.
disability payments made to or on behalf of an employee or
dependents: Withholding or payment of employee tax by employer.
• Under a workers' compensation law, You must collect the employee railroad retirement tax from
• Under section 2(a) of the Railroad Unemployment each employee by withholding it from employee
Insurance Act for days of sickness due to an on-the-job compensation. If you don't withhold the employee tax, you
injury, must still pay the tax. If you withhold too much or too little tax
• Under the Railroad Retirement Act, or because you can't determine the correct amount, correct the
• More than 6 months after the calendar month the amount withheld by an adjustment, credit, or refund
employee last worked. according to the applicable regulations.
For purposes of Tier 2 taxes, compensation doesn't If you pay the railroad retirement tax for your employee
include payments made to or on behalf of an employee or rather than withholding it, the amount of the employee's
dependents under a sickness or accident disability plan or a compensation is increased by the amount of that tax. See
medical or hospitalization plan in connection with sickness or Rev. Proc. 83-43,1983-1 C.B. 778, for information on how to
accident disability. figure and report the proper amounts.
Employer and Employee Taxes Tips. Your employee must report cash tips to you by the
10th day of the month following the month the tips are
Tax Rates and Compensation Bases received. The report should include charged tips you paid
over to the employee for charge customers, tips the
Tax Rates Compensation employee received directly from customers, and tips
Paid in 2022 received from other employees under any tip-sharing
arrangement. Both directly and indirectly tipped employees
Tier 1
must report tips to you. Cash tips must be reported for every
Employer and Employee: Each pay 6.2% month, unless the cash tips for the month are less than $20.
of first . . . . . . . . . . . . . . . . . . . . . . . . . . . $147,000 Stop collecting the Tier 1 Employee tax when the employee’s
Tier 1 Medicare compensation and tips for tax year 2022 reach $147,000.
Employer and Employee: Each pay 1.45% of . . All Collect the Tier 1 Employee Medicare tax for the whole year
on all compensation and tips. Collect the Tier 1 Employee
Tier 1 Employee Additional Medicare Tax Additional Medicare Tax withholding on compensation and
withholding tips that exceed $200,000 for the calendar year.
Employee: Pays 0.9% on An employee must furnish you with a written (or electronic)
compensation exceeding . . . . . . . . . . . . . $200,000
statement of cash tips, signed by the employee, showing (a)
Tier 2 their name, address, and social security number; (b) your
Employer: Pays 13.1% of first . . . . . . . . . . . . $109,200 name and address; (c) the month or period for which the
Employee: Pays 4.9% of first . . . . . . . . . . . . $109,200 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.
Employer Taxes Tips are considered to be paid at the time the employee
Employers must pay both Tier 1 and Tier 2 taxes, except for reports them to you. You must collect both employee railroad
the Tier 1 Employer tax (line 1) on qualified sick and family retirement tax and federal income tax on cash tips reported
leave compensation for leave taken after March 31, 2020, to you from the employee's compensation (after withholding
and before April 1, 2021, and the Tier 1 Employee Additional employee railroad retirement and federal income tax related
Medicare Tax. Tier 1 tax is divided into two parts. The to the nontip compensation) or from other funds the
amount of compensation subject to each tax is different. See employee makes available. Apply the compensation or other
the table above for the 2022 tax rates and compensation funds first to the railroad retirement tax and then to federal
bases. income tax. You don't have to pay employer railroad
retirement taxes on tips.
Concurrent employment. If two or more related
corporations that are rail employers employ the same If, by the 10th of the month after the month you received
an employee's tip income report, you don't have enough

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employee funds available to withhold the employee tax, you Adjustments to a return for a prior period aren't taken into
may report the excess amount without withholding the account in determining the taxes for that prior period.
related tax. Include the tips your employees report to you on Example. Maple Co. originally reported Form CT-1 taxes
lines 4, 5, 6, and 7, even if you were unable to withhold the of $45,000 for the lookback period (2021). Maple Co.
employee's share of tax. Then report the uncollected Tier 1 discovered in March 2023 that the tax during the lookback
Employee tax, Tier 1 Employee Medicare tax, Tier 1 period (2021) was understated by $10,000 and will correct
Employee Additional Medicare Tax withholding, and Tier 2 this error with an adjustment on Form CT-1 X filed for 2021.
Employee tax on tips on line 14. See section 6 of Pub. 15. Maple Co. is a monthly schedule depositor for 2023
because the lookback period Form CT-1 taxes are based on
Depositing Taxes
the amount originally reported ($45,000), which wasn't more
For Tier 1 and Tier 2 taxes, you’re either a monthly schedule than $50,000. For purposes of the lookback rule, the $10,000
depositor or a semiweekly schedule depositor. However, see adjustment doesn't affect either 2021 taxes or 2023 taxes.
the $2,500 Rule and the $100,000 Next-Day Deposit Rule See Treasury Decision 9405, available at IRS.gov/irb/
under Exceptions to the Deposit Rules, later. The terms 2008-32_IRB#TD-9405.
“monthly schedule depositor” and “semiweekly schedule
depositor” identify which set of rules you must follow when a When To Deposit
tax liability arises (for example, when you have a payday).
They don't refer to how often your business pays its Monthly Schedule Depositor
employees or to how often you’re required to make deposits.
If you’re a monthly schedule depositor, deposit employer and
If you were a monthly schedule depositor for the entire employee Tier 1 and Tier 2 taxes accumulated during a
year, complete the Monthly Summary of Railroad Retirement calendar month by the 15th day of the following month.
Tax Liability in Part II of Form CT-1. If you were a semiweekly
Example. Spruce Co. is a monthly schedule depositor
schedule depositor during any part of the year or you
with seasonal employees. Spruce Co. paid compensation
accumulated $100,000 or more on any day during a deposit
each Friday during May but didn't pay any compensation
period, you must complete Form 945-A, Annual Record of
during June. Under the monthly schedule deposit rule,
Federal Tax Liability.
Spruce Co. must deposit the combined taxes for the May
Lookback Period paydays by June 15. Spruce Co. doesn't have a deposit
requirement for June (due by July 15) because no
Before each year begins, you must determine the deposit compensation was paid and, therefore, Spruce Co. doesn't
schedule to follow for depositing Tier 1 and Tier 2 taxes for a have a tax liability for the month.
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 Semiweekly Schedule Depositor
preceding the current calendar year. For example, the
lookback period for calendar year 2023 is calendar year If you’re a semiweekly schedule depositor, use the table
2021. below to determine when to make deposits.
Use the table below to determine which deposit schedule Deposit Tier 1 and Tier 2 taxes No later than...
to follow for 2023. for payments made on...
IF you reported taxes THEN for 2023 you’re a... Wednesday, Thursday, and/or The following Wednesday
(Form CT-1, line 19) for the Friday
lookback period (2021) of... Saturday, Sunday, Monday, The following Friday
$50,000 or less Monthly schedule depositor and/or Tuesday
More than $50,000 Semiweekly schedule depositor

Example. Green, Inc., a semiweekly schedule depositor,
pays compensation on the last Friday of each month.
Example. Rose Co. reported Form CT-1 taxes as follows. Although Green, Inc., is a semiweekly schedule depositor,
• 2021 Form CT-1, line 19—$49,000. Green, Inc., will deposit just once a month because Green,
• 2022 Form CT-1, line 19—$52,000. Inc., pays compensation only once a month. The deposit,
Rose Co. is a monthly schedule depositor for 2023 however, will be made under the semiweekly deposit
because its Form CT-1 taxes for its lookback period schedule as follows: Green, Inc.’s taxes for the April 28, 2023
(calendar year 2021) weren't more than $50,000. However, (Friday), payday must be deposited by May 3, 2023
for 2024, Rose Co. is a semiweekly schedule depositor (Wednesday). Under the semiweekly deposit rule, taxes
because the total taxes exceeded $50,000 for its lookback arising on Wednesday through Friday must be deposited by
period (calendar year 2022). the following Wednesday.
New employer. If you’re a new employer, your taxes for The last day of the calendar year ends the
both years of the lookback period are considered to be zero. ! semiweekly deposit period and begins a new one.
Therefore, you’re a monthly schedule depositor for the first CAUTION
and second years of your business. However, see $100,000
Next-Day Deposit Rule, later. Deposits Due on Business Days Only
Adjustments and the lookback rule. To determine the
amount of taxes paid for the lookback period, use only the If a deposit is required to be made on a day that isn't a
Form CT-1 taxes reported on your original return. business day, the deposit is considered to have been made

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timely if it is made by the close of the next business day. A accumulating at the end of that day and begin to accumulate
business day is any day other than a Saturday, Sunday, or anew on the next day. The following examples explain this
legal holiday. For example, if a deposit is due on a Friday and rule.
Friday is a legal holiday, the deposit will be considered timely Example of $100,000 Next-Day Deposit Rule.
if it is made by the following Monday (if that Monday is a Fir Co. is a semiweekly schedule depositor. On Monday, Fir
business day). The term “legal holiday” for deposit purposes Co. accumulates taxes of $110,000 and must deposit this
includes only those legal holidays in the District of Columbia. amount by Tuesday, the next business day. On Tuesday, Fir
For a list of legal holidays, see section 11 of Pub. 15. Co. accumulates additional taxes of $30,000. Because the
$30,000 isn't added to the previous $110,000, Fir Co. must
Semiweekly schedule depositors will always have at least deposit the $30,000 by Friday using the semiweekly deposit
3 business days following the close of the semiweekly period schedule.
to make a deposit. If any of the 3 weekdays after the end of a Example of $100,000 Next-Day Deposit Rule during
semiweekly period is a legal holiday, you have 1 additional the first year of business. Elm, Inc., started its business
day to deposit. For example, if you have Form CT-1 taxes on Monday, May 1, 2023. Because this was the first year of
accumulated for payments made on Friday and the following its business, its Form CT-1 taxes for its lookback period
Monday is a legal holiday, the deposit normally due on (2021) are considered to be zero, and Elm, Inc., is a monthly
Wednesday may be made on Thursday (allowing 3 business schedule depositor. On Wednesday, May 3, it paid
days to make the deposit). compensation for the first time and accumulated taxes of
$40,000. On Friday, May 5, it paid compensation and
Exceptions to the Deposit Rules accumulated taxes of $60,000, bringing its total accumulated
(undeposited) taxes to $100,000. Because Elm, Inc.,
The two exceptions that apply to the deposit rules are the: accumulated $100,000 or more on May 5 (Friday), Elm, Inc.,
• $2,500 Rule, and must deposit the $100,000 by May 8 (Monday), the next
• $100,000 Next-Day Deposit Rule. business day. Elm, Inc., became a semiweekly schedule
depositor on May 6. Elm, Inc., will be a semiweekly schedule
$2,500 Rule. If your total Form CT-1 taxes after adjustments depositor for the rest of 2023 and for 2024.
and nonrefundable credits (line 19) for the year are less than
Example of when $100,000 Next-Day Deposit Rule
$2,500 and the taxes are fully paid with a timely filed Form
doesn't apply. Oak Co., a semiweekly schedule depositor,
CT-1, no deposits are required. However, if you’re unsure
accumulated taxes of $95,000 on a Tuesday (of a
that you will accumulate less than $2,500, deposit under the
Saturday-through-Tuesday deposit period) and accumulated
appropriate deposit rules so that you won't be subject to
$10,000 on Wednesday (of a Wednesday-through-Friday
deposit penalties.
deposit period). Because the $10,000 was accumulated in a
$100,000 Next-Day Deposit Rule. If you accumulate deposit period different from the one in which the $95,000
undeposited taxes of $100,000 or more on any day during a was accumulated, the $100,000 Next-Day Deposit Rule
deposit period, you must deposit the taxes by the next doesn’t apply. Thus, Oak Co. must deposit $95,000 by Friday
business day regardless of whether you’re a monthly or and $10,000 by the following Wednesday.
semiweekly schedule depositor. If you're a monthly schedule Reducing your deposits for COVID 19 credits. ‐
depositor and accumulate a $100,000 tax liability on any day Employers eligible to claim the credit for qualified sick and
during the deposit period, you become a semiweekly family leave compensation paid in 2022 for leave taken after
schedule depositor on the next day and remain so for at least March 31, 2020, and before October 1, 2021, and/or the
the rest of the calendar year and for the following calendar COBRA premium assistance credit can reduce their deposits
year. If you become a semiweekly schedule depositor under by the amount of their anticipated credits. You may reduce
this rule solely as a result of the relief provided in Notice your deposits of federal employment taxes in anticipation of
2021-65 regarding the early termination of the employee the COBRA premium assistance credit with regard to a
retention credit for the fourth quarter of 2021, you may be period of coverage as of the date you are entitled to the
converted back to a monthly schedule depositor by credit. Employers won't be subject to an FTD penalty for
contacting the IRS. You may continue to deposit in reducing their deposits if certain conditions are met. See the
accordance with your status as a monthly schedule instructions for line 16 line 17b, , and line 17c for more
depositor, but you may receive a system-generated information on these credits. For more information on
failure-to-deposit (FTD) penalty notice after you file your reducing deposits, see Notice 2020 22, 2020 17 I.R.B. 664, ‐ ‐
Form CT-1 for 2022. Contact the IRS at the toll-free number available at IRS.gov/irb/2020-17_IRB#NOT-2020-22 and
on your FTD penalty notice to request abatement of the FTD Notice 2021-24. See the instructions for Part II, later, for
penalty and to be converted back to a monthly schedule instructions on how to adjust your tax liabilities reported on
depositor. Aside from this exception, ordinary rules for Part II or Form 945-A for nonrefundable credits.
determining deposit frequency will continue to apply. The
Example. Reducing deposits for COBRA premium
$100,000 tax liability threshold requiring a next-day deposit is
assistance. Maple Co. has a weekly payroll period. Sophie
determined before you consider any reduction of your liability
Rose elected COBRA premium assistance on January 7,
for nonrefundable credits. For more information, including an
2022. Maple Co. became entitled to a COBRA premium
example, see frequently asked question 17 at IRS.gov/ETD.
assistance credit as of January 7, 2022, for the premiums not
If you’re a monthly schedule depositor and you paid by Sophie (an assistance eligible individual) for part of
accumulate $100,000 or more on any day during the month, the period of coverage from September 1, 2021, through
you become a semiweekly schedule depositor on the next September 30, 2021. Maple Co. could have reduced its
day for the remainder of the calendar year and for the federal employment tax deposits as of January 7, 2022, in
following year. anticipation of the credit to which Maple Co. became entitled.
Once a semiweekly schedule depositor accumulates
$100,000 or more in a deposit period, it must stop

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Electronic Deposit Requirement Use Form 843 to request abatement of assessed
You must use EFT to make all federal tax deposits. penalties or interest. Don't request abatement of assessed
Generally, an EFT is made using EFTPS. To get more penalties or interest on Form CT-1 or Form CT-1 X.
information about EFTPS or to enroll in EFTPS, go to Order in which deposits are applied. Generally, tax
EFTPS.gov or call 800-555-4477. To contact EFTPS using deposits are applied first to the most recent tax liability within
TRS for people who are deaf, hard of hearing, or have a the specified tax period to which the deposit relates. If you
speech disability, dial 711 and then provide the TRS receive an FTD penalty notice, you may designate how your
assistant the 800-555-4477 number above or 800-733-4829. payment is to be applied in order to minimize the amount of
Additional information about EFTPS is also available in Pub. the penalty. You must respond within 90 days of the date of
966. the notice. Follow the instructions on the notice you received.
For an EFTPS deposit to be on time, you must See Rev. Proc. 2001-58 for more information. You can find
Rev. Proc. 2001-58 on page 579 of Internal Revenue Bulletin
! submit the deposit by 8 p.m. Eastern time the day 2001-50 at IRS.gov/pub/irs-irbs/irb01-50.pdf.
CAUTION before the date the deposit is due.
Trust fund recovery penalty. If taxes that must be withheld
Same-day wire payment option. If you fail to submit a (that is, trust fund taxes) aren't withheld or aren't deposited or
deposit transaction on EFTPS by 8 p.m. Eastern time the day paid to the United States Treasury, the trust fund recovery
before the date a deposit is due, you can still make your penalty may apply. The penalty is 100% of the unpaid trust
deposit on time by using the Federal Tax Collection Service fund tax. If these unpaid taxes can't be immediately collected
(FTCS) to make a same-day wire payment. To use the from the employer or business, the trust fund recovery
same-day wire payment method, you will need to make penalty may be imposed on all persons who are determined
arrangements with your financial institution ahead of time. by the IRS to be responsible for collecting, accounting for, or
Please check with your financial institution regarding paying over these taxes, and who acted willfully in not doing
availability, deadlines, and costs. Your financial institution so. For more information, see Trust Fund Recovery Penalty
may charge you a fee for payments made this way. To learn in section 11 of Pub. 15. The trust fund recovery penalty
more about the information you will need to give your won't apply to any amount of trust fund taxes an employer
financial institution to make a same-day wire payment, go to holds back in anticipation of any credits they are entitled to. It
IRS.gov/SameDayWire. also won't apply to applicable taxes properly deferred under
Accuracy of Deposits Rule. You’re required to deposit Notice 2020-65 and Notice 2021-11 if paid by the due date.
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 Specific Instructions

are met. Final Return
1. Any deposit shortfall doesn't exceed the greater of If you stop paying taxable compensation and won't have to
$100 or 2% of the amount of taxes otherwise required to be file Form CT-1 in the future, you must file a final return and
deposited. check the final return box at the top of Form CT-1 under
2. The deposit shortfall is paid or deposited by the “2022.” The final return should be accompanied by a
shortfall makeup date for each type of depositor as described statement providing the last date on which you paid
below. compensation that you reported on Form CT-1, the address
• Monthly schedule depositor. Deposit the shortfall or pay at which the records for your Forms CT-1 will be kept, and
it with your return by the due date of Form CT-1. You may the name of the person keeping the records. If the business
pay the shortfall with Form CT-1 even if the amount is $2,500 has been transferred to another person, the statement should
or more. include the name and address of the transferee and the date
• Semiweekly schedule depositor. Deposit the shortfall of the transfer. If the business wasn't transferred or the
by the earlier of the first Wednesday or Friday on or after the transferee isn't known, the statement should so state.
15th of the month following the month in which the shortfall
occurred. For example, if a semiweekly schedule depositor Processing of your return may be delayed if you don't
has a deposit shortfall during May 2023, the shortfall makeup ! provide the required amounts in the Compensation
date is June 16, 2023 (Friday). CAUTION and Tax columns.

Penalties and Interest Line 1—Tier 1 Employer Tax
The law provides penalties for failure to file a return, late filing Enter the compensation (other than tips and sick pay),
of a return, late payment of taxes, failure to make deposits, including qualified sick leave compensation and qualified
and late deposits unless filing and/or paying late is due to family leave compensation paid in 2022 for leave taken after
reasonable cause and not due to willful neglect. Interest is March 31, 2021, and before October 1, 2021, subject to Tier
charged on taxes paid late at the rate set by law. For more 1 Employer tax in the Compensation column. Don't include
information, see Pub. 15. Deposit or pay your taxes when qualified sick leave compensation paid in 2022 or qualified
they are due, unless you meet the requirements discussed in family leave compensation paid in 2022 for leave taken after
Notice 2020-22 and Notice 2021-24. March 31, 2020, and before April 1, 2021. Multiply by 6.2%
and enter the result in the Tax column. The total amount
If you receive a notice about a penalty after you file this listed in the Compensation column for lines 1 and 8
return, reply to the notice with an explanation and we will combined may not be more than $147,000 per employee.
determine if you meet reasonable cause criteria. Don't attach
an explanation when you file your return.

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Qualified Sick Leave Compensation and                              care for an individual who is recovering from any injury, 
Qualified Family Leave Compensation                                disability, illness, or condition related to the immunization.
Qualified sick leave compensation.   For purposes of the           Son or daughter.     A son or daughter must generally have 
credit for qualified sick and family leave compensation,           been under 18 years of age or incapable of self-care 
qualified sick leave compensation is compensation                  because of a mental or physical disability. A son or daughter 
(determined without regard to the exclusions under section         includes a biological child, adopted child, stepchild, foster 
3231(e)(1)) paid under the Emergency Paid Sick Leave Act           child, legal ward, or child for whom the employee assumes 
(EPSLA) or the Emergency Family and Medical Leave                  parental status and carries out the obligations of a parent.
Expansion Act (Expanded FMLA) as enacted under the                 Limits on qualified sick leave compensation.          The 
FFCRA and amended for purposes of the ARP. See the                 EPSLA, as amended for purposes of the ARP, provides 
instructions for line 16 for information about the credit for      different limitations for different circumstances under which 
qualified sick and family leave compensation paid in 2022 for      qualified sick leave compensation is paid. For paid sick leave 
leave taken after March 31, 2020, and before April 1, 2021,        qualifying under (1), (2), or (3) above, the amount of qualified 
and the instructions for line 17b for information about the        sick leave compensation is determined at the employee's 
credit for qualified sick and family leave compensation paid in    regular rate of pay, but the compensation may not exceed 
2022 for leave taken after March 31, 2021, and before              $511 for any day (or portion of a day) for which the individual 
October 1, 2021.                                                   is paid sick leave. For paid sick leave qualifying under (4), 
                                                                   (5), or (6) above, the amount of qualified sick leave 
        Although qualified sick leave compensation and             compensation is determined at two-thirds the employee's 
!       qualified family leave compensation are defined as         regular rate of pay, but the compensation may not exceed 
CAUTION compensation determined without regard to the 
                                                                   $200 for any day (or portion of a day) for which the individual 
exclusions under section 3231(e)(1) for purposes of the            is paid sick leave. The EPSLA also limits each individual to a 
credit for qualified sick and family leave compensation, don't     maximum of up to 80 hours of paid sick leave in total for 
include any compensation otherwise excluded under section          leave taken after March 31, 2020, and before April 1, 2021. 
3231(e)(1) when reporting qualified sick leave compensation        The ARP resets this limit at 80 hours of paid sick leave for 
and qualified family leave compensation on lines 1, 2, 3, 4, 5,    leave taken after March 31, 2021, and before October 1, 
6, and 7.                                                          2021. Therefore, for leave taken after March 31, 2020, and 
EPSLA.    Employers with fewer than 500 employees and,             before April 1, 2021, the maximum amount of paid sick leave 
for leave taken after March 31, 2021, and before October 1,        compensation can't exceed $5,110 for an employee for leave 
2021, certain governmental employers without regard to             under (1), (2), or (3), and it can't exceed $2,000 for an 
number of employees (except for the federal government and         employee for leave under (4), (5), or (6). These maximum 
its agencies and instrumentalities unless described in section     amounts also reset and apply to leave taken after March 31, 
501(c)(1)) are entitled to a credit if they provide paid sick      2021, and before October 1, 2021.
leave to employees that otherwise meets the requirements of        For more information about qualified sick leave 
the EPSLA. Under the EPSLA, as amended for purposes of             compensation, go to IRS.gov/PLC.
the ARP, compensation is qualified sick leave compensation 
                                                                   Qualified family leave compensation.      For purposes of 
if paid to employees that are unable to work or telework 
                                                                   the credit for qualified sick and family leave compensation, 
before October 1, 2021, because the employee:
                                                                   qualified family leave compensation is compensation 
1. Is subject to a federal, state, or local quarantine or          (determined without regard to the exclusions under section 
isolation order related to COVID-19;                               3231(e)(1)) paid under the Expanded FMLA as enacted 
2. Has been advised by a health care provider to                   under the FFCRA and amended for purposes of the ARP. 
self-quarantine due to concerns related to COVID-19;               However, some compensation eligible for the credit should 
3. Is experiencing symptoms of COVID-19 and seeking a              not be reported as taxable compensation on lines 1, 2, 3, 4, 
medical diagnosis; or, for leave taken after March 31, 2021,       5, 6, and 7. See the Caution, earlier, for more information. 
and before October 1, 2021, is seeking or awaiting the             See the instructions for line 16 for information about the 
results of a diagnostic test for, or a medical diagnosis of,       credit for qualified sick and family leave compensation paid in 
COVID-19 (and the employee has been exposed to                     2022 for leave taken after March 31, 2020, and before April 
COVID-19 or the employee's employer has requested such             1, 2021, and the instructions for line 17b for information about 
test or diagnosis), or the employee is obtaining                   the credit for qualified sick and family leave compensation 
immunizations related to COVID-19 or recovering from an            paid in 2022 for leave taken after March 31, 2021, and before 
injury, disability, illness, or condition related to such          October 1, 2021.
immunization;                                                      Expanded FMLA.       Employers with fewer than 500 
                                                                   employees and, for leave taken after March 31, 2021, and 
4. Is caring for an individual subject to an order described 
                                                                   before October 1, 2021, certain governmental employers 
in (1) or who has been advised as described in (2);
                                                                   without regard to number of employees (except for the 
5. Is caring for son or daughter because the school or             federal government and its agencies and instrumentalities 
place of care for that child has been closed, or the childcare     unless described in section 501(c)(1)) are entitled to a credit 
provider for that child is unavailable, due to COVID-19            under the FFCRA, as amended for purposes of the ARP, if 
precautions; or                                                    they provide paid family leave to employees that otherwise 
6. Is experiencing any other substantially similar                 meets the requirements of the Expanded FMLA. For leave 
condition specified by the U.S. Department of Health and           taken after March 31, 2020, and before April 1, 2021, 
Human Services, which for leave taken after March 31, 2021,        compensation is qualified family leave compensation if paid 
and before October 1, 2021, includes to accompany an               to an employee who has been employed for at least 30 
individual to obtain immunization related to COVID-19, or to       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 

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or incapable of self-care because of a mental or physical compensation paid in 2022 (including sick pay), but not
disability because the school or place of care for that child including tips, totals $147,000 for the year.
has been closed, or the childcare provider for that child is
unavailable, due to a public health emergency. See Son or Line 5—Tier 1 Employee Medicare
daughter, earlier, for more information. For leave taken after Tax
March 31, 2021, and before October 1, 2021, the leave can
be granted for any other reason provided by the EPSLA, as Enter the compensation, including tips reported (but
amended for purposes of the ARP. excluding sick pay), qualified sick leave compensation paid
in 2022, and qualified family leave compensation paid in
For leave taken after March 31, 2020, and before April 1, 2022, subject to Tier 1 Employee Medicare tax in the
2021, the first 10 days for which an employee takes leave Compensation column. Multiply by 1.45% and enter the
may be unpaid. During this period, employees may use other result in the Tax column. For information on reporting tips,
forms of paid leave, such as qualified sick leave, accrued see Tips, earlier.
sick leave, annual leave, or other paid time off. After an
employee takes leave for 10 days, the employer provides the Line 6—Tier 1 Employee Additional
employee paid leave (that is, qualified family leave
compensation) for up to 10 weeks. For leave taken after Medicare Tax Withholding
March 31, 2021, and before October 1, 2021, the 10-day rule Enter the compensation, including tips reported (but
discussed above doesn't apply and the paid leave can be excluding sick pay), qualified sick leave compensation paid
provided for up to 12 weeks. in 2022, and qualified family leave compensation paid in
Rate of pay and limit on compensation. The rate of pay 2022, that is subject to Tier 1 Employee Additional Medicare
must be at least two-thirds of the employee's regular rate of Tax withholding. You’re required to begin withholding Tier 1
pay (as determined under the Fair Labor Standards Act of Employee Additional Medicare Tax in the pay period in which
1938), multiplied by the number of hours the employee you pay compensation in excess of $200,000 to an employee
otherwise would have been scheduled to work. For leave and continue to withhold it each pay period until the end of
taken after March 31, 2020, and before April 1, 2021, the the calendar year. Tier 1 Employee Additional Medicare Tax
qualified family leave compensation can't exceed $200 per is only imposed on the employee. There is no employer
day or $10,000 in the aggregate per employee. For leave share of Tier 1 Additional Medicare Tax. All compensation
taken after March 31, 2021, and before October 1, 2021, the (including sick pay) that is subject to Tier 1 Medicare tax is
limit resets and the total qualified family leave compensation subject to Tier 1 Employee Additional Medicare Tax if paid in
can't exceed $200 per day or $12,000 in the aggregate per excess of the $200,000 withholding threshold.
employee.
Go to IRS.gov/ADMTfaqs for more information on Tier 1
For more information about qualified family leave Employee Additional Medicare Tax.
compensation, go to IRS.gov/PLC.
Line 7—Tier 2 Employee Tax
Line 2—Tier 1 Employer Medicare Tax Enter the compensation, including tips reported, qualified
Enter the compensation (other than tips and sick pay), sick leave compensation paid in 2022, and qualified family
including qualified sick leave compensation paid in 2022 and leave compensation paid in 2022, subject to Tier 2 Employee
qualified family leave compensation paid in 2022, subject to tax in the Compensation column. Only the first $109,200 of
Tier 1 Employer Medicare tax in the Compensation column. the employee's compensation (including tips, qualified sick
Multiply by 1.45% and enter the result in the Tax column. leave compensation paid in 2022, and qualified family leave
compensation paid in 2022, is subject to this tax. Multiply by
Line 3—Tier 2 Employer Tax 4.9% and enter the result in the Tax column. For information
Enter the compensation (other than tips), including qualified on reporting tips, see Tips, earlier.
sick leave compensation paid in 2022 and qualified family
leave compensation paid in 2022, subject to Tier 2 Employer Any compensation paid during the current year that
tax in the Compensation column. Don't enter more than ! was earned in prior years (reported to the Railroad
$109,200 per employee. Multiply by 13.1% and enter the CAUTION Retirement Board on Form BA-4, Report of
result in the Tax column. Creditable Compensation Adjustments) is taxable at the
current year tax rates, unless special timing rules for
Line 4—Tier 1 Employee Tax nonqualified deferred compensation apply. See Pub.15-A.
Enter the compensation, including tips reported (but Include such compensation with current year compensation
excluding sick pay), qualified sick leave compensation paid on lines 1–7, as appropriate.
in 2022, and qualified family leave compensation paid in
2022, subject to Tier 1 Employee tax in the Compensation Lines 8–12—Tier 1 Taxes on Sick Pay
column. Multiply by 6.2% and enter the result in the Tax Don't include qualified sick leave compensation paid
column. The total amount listed in the Compensation column ! in 2022 or qualified family leave compensation paid
for lines 4 and 10 combined may not be more than $147,000 CAUTION in 2022 on lines 8 through 12.
per employee.
Enter any sick pay payments during the year that are
Stop collecting the 6.2% Tier 1 Employee tax when the subject to Tier 1 taxes, Tier 1 Medicare taxes, and Tier 1
employee's compensation (including sick pay), tips, qualified Employee Additional Medicare Tax withholding in the
sick leave compensation paid in 2022, and qualified family Compensation column. Multiply by the rate for the line and
leave compensation paid in 2022, reach the maximum for the enter the result in the Tax column for that line. For Tier 1
year ($147,000 for 2022). However, your liability for Tier 1 Employer taxes, the total amount listed in the Compensation
Employer tax on compensation continues until the column for lines 1 and 8 combined may not be more than
$147,000 per employee. For Tier 1 Employee taxes, the total

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amount listed in the Compensation column for lines 4 and 10 space. If the actual amount is more, report a positive
combined may not be more than $147,000 per employee. adjustment.
Tier 1 Medicare taxes aren't subject to a dollar limitation.
If this is the only entry on line 14, you’re not required
All compensation (including sick pay) that is subject to TIP to attach a statement explaining the adjustment.
Tier 1 Medicare tax is subject to Tier 1 Employee Additional
Medicare Tax if paid in excess of the $200,000 withholding
threshold. Line 15—Total Taxes After
Adjustments
If you’re a railroad employer paying your employees sick
pay, or a third-party payer who didn't notify the employer of Combine the amounts shown on lines 13 and 14 and enter
the payments (thereby subject to the employee and employer the result on line 15.
tax), make entries on lines 8–12. If you’re subject to only the Form CT-1 and these instructions use the terms
employer or employee tax, complete only the applicable TIP “nonrefundable” and “refundable” when discussing
lines. Multiply by the appropriate rates and enter the results credits. The term “nonrefundable” means the portion
in the Tax column. of the credit which is limited by law to the amount of certain
taxes. The term “refundable” means the portion of the credit
Line 13—Total Tax Based on which is in excess of those taxes.
Compensation
Add lines 1 through 12 and enter the result on line 13. Line 16—Nonrefundable Portion of
Credit for Qualified Sick and Family
Line 14—Adjustments to Taxes Based
Leave Compensation for Leave Taken
on Compensation
After March 31, 2020, and Before April
Don't use line 14 for prior period adjustments. Make
! all prior period adjustments on Form CT-1 X. 1, 2021
CAUTION
Complete line 16 only if qualified sick leave
Enter on line 14:
compensation and/or qualified family leave
• A fractions-of-cents adjustment (see Adjustment for CAUTION!
compensation was paid in 2022 for leave taken after
fractions of cents, later);
March 31, 2020, and before April 1, 2021.
• Credits for overpayments of penalty or interest paid on tax
for earlier years; and Certain private employers with fewer than 500 employees
• Any uncollected Tier 1 Employee tax, Tier 1 Employee that provide paid sick leave under the EPSLA and/or provide
Medicare tax, Tier 1 Employee Additional Medicare Tax, and paid family leave under the Expanded FMLA are eligible to
Tier 2 Employee tax on tips. claim the credit for qualified sick and family leave
compensation for leave taken after March 31, 2020, and
Enter the total of these adjustments in the Tax column. If before April 1, 2021. For purposes of this credit, qualified sick
you’re reporting both an addition and a subtraction, enter leave compensation and qualified family leave compensation
only the difference between the two on line 14. If the net are compensation (determined without regard to the
adjustment is negative, report the amount on line 14 using a exclusions under section 3231(e)(1)) paid under the EPSLA
minus sign, if possible. If your computer software doesn't and Expanded FMLA. Enter the nonrefundable portion of the
allow the use of minus signs, you may use parentheses. credit for qualified sick and family leave compensation from
Worksheet 1, Step 2, line 2j. The credit for qualified sick and
Don't include on line 14 any 2021 overpayment that is
family leave compensation consists of the qualified sick leave
applied to this year's return (this is included on line 20).
compensation, the qualified family leave compensation, the
Required statement. Except for adjustments for fractions of qualified health plan expenses allocable to that
cents, explain amounts entered on line 14 in a separate compensation, and the Tier 1 Employer Medicare tax
statement. Include your name, EIN, calendar year of the allocable to that compensation. The nonrefundable portion of
return, and “Form CT-1” on each page you attach. Include in the credit is limited to the Tier 1 Employer tax (line 1) and Tier
the statement the following information. 1 Employer tax—Sick Pay (line 8).
• An explanation of the item the adjustment is intended to
correct showing the compensation subject to Tier 1 and Tier Any credit in excess of the remaining amount of the Tier 1
2 taxes and their respective tax rates. Employer tax (line 1) and Tier 1 Employer tax—Sick Pay
• The amount of the adjustment. (line 8) is refundable and reported on Form CT-1, line 23. For
• The name and account number of any employee from more information on the credit for qualified sick and family
whom employee tax was undercollected or overcollected. leave compensation, go to IRS.gov/PLC.
• How you and the employee have settled any Qualified health plan expenses allocable to qualified
undercollection or overcollection of employee tax. sick and family leave compensation. The credit for
Adjustment for fractions of cents. If there is a small qualified sick leave compensation and qualified family leave
difference between the total employee tax (lines 4–7 and 10– compensation is increased to cover the qualified health plan
12) and the total actually withheld from employee expenses that are properly allocable to the qualified leave
compensation including tips, it may be caused by rounding to compensation for which the credit is allowed. These qualified
the nearest cent each time you figured payroll. The health plan expenses are amounts paid or incurred by the
difference, positive or negative, is your fractions-of-cents employer to provide and maintain a group health plan but
adjustment to be reported on line 14. If the actual amount only to the extent such amounts are excluded from the
withheld is less, report a negative adjustment in the entry employees’ income as coverage under an accident or health

Instructions for Form CT-1 (2022) -11-

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plan. The amount of qualified health plan expenses generally    Medicare tax—Sick pay (line 9). You can't claim the credit for 
includes both the portion of the cost paid by the employer      leave taken after March 31, 2021, and before October 1, 
and the portion of the cost paid by the employee with pre-tax   2021, if you provide the leave in a manner that discriminates 
salary reduction contributions. However, the qualified health   in favor of highly compensated employees, full-time 
plan expenses shouldn't include amounts that the employee       employees, or employees on the basis of employment tenure 
paid for with after-tax contributions. For more information, go when making qualified sick and/or family leave available to 
to IRS.gov/PLC.                                                 employees. See Highly compensated employee, later, for the 
                                                                definition.
        You must include the full amount (both the 
TIP     nonrefundable and refundable portions) of the credit         For leave taken after March 31, 2021, and before October 
        for qualified sick and family leave compensation in     1, 2021, the credit for qualified sick and family leave 
your gross income for the tax year that includes the last day   compensation is reduced by the amount of the credit allowed 
of any calendar quarter in which a credit is allowed.           under section 41 (for the credit for increasing research 
                                                                activities) with respect to compensation taken into account 
Line 17b—Nonrefundable Portion of                               for determining the credit for qualified sick and family leave 
                                                                compensation; and any compensation taken into account in 
Credit for Qualified Sick and Family                            determining the credit for qualified sick and family leave 
Leave Compensation for Leave Taken                              compensation can't be taken into account as compensation 
                                                                for purposes of the credits under sections 45A, 45P, 45S, 
After March 31, 2021, and Before                                and 51. For leave taken after March 31, 2021, and before 
October 1, 2021                                                 October 1, 2021, qualified compensation also doesn't include 
                                                                compensation that was used as payroll costs in connection 
        Complete line 17b only if qualified sick leave          with a Shuttered Venue Operator Grant under section 324 of 
   !    compensation and/or qualified family leave              the Economic Aid to Hard-Hit Small Businesses, Nonprofits, 
CAUTION compensation was paid in 2022 for leave taken after     and Venues Act; or a restaurant revitalization grant under 
March 31, 2021, and before October 1, 2021.                     section 5003 of the ARP. Employers can receive both a 
   Employers with fewer than 500 employees and certain          Small Business Interruption Loan under the Paycheck 
governmental employers without regard to number of              Protection Program (PPP) and the credit for qualified sick 
employees (except for the federal government and its            and family leave compensation; however, employers can't 
agencies and instrumentalities unless described in section      receive both loan forgiveness and a credit for the same 
501(c)(1)) are entitled to a credit if they provide paid sick   compensation. The same compensation can't be treated as 
leave to employees that otherwise meets the requirements of     both qualified sick leave compensation and qualified family 
the EPSLA, as amended for purposes of the ARP, and/or           leave compensation.
provide paid family leave to employees that otherwise meets          Any credit in excess of the remaining amount of the Tier 1 
the requirements under the Expanded FMLA, as amended            Employer Medicare tax (line 2) and Tier 1 Employer 
for purposes of the ARP, for qualified sick and family leave    Medicare tax—Sick pay (line 9) is refundable and reported 
compensation for leave taken after March 31, 2021, and          on Form CT-1, line 24b. For more information on the credit 
before October 1, 2021. For purposes of this credit, qualified  for qualified sick and family leave compensation, go to 
sick leave compensation and qualified family leave              IRS.gov/PLC.
compensation are compensation determined without regard 
to the exclusions from the definition of compensation under     Qualified health plan expenses allocable to qualified 
section 3231(e)(1), that an employer pays that otherwise        sick and family leave compensation. The credit for 
meet the requirements of the EPSLA or Expanded FMLA, as         qualified sick leave compensation and qualified family leave 
enacted under the FFCRA and amended for purposes of the         compensation is increased to cover the qualified health plan 
ARP. Enter the nonrefundable portion of the credit for          expenses that are properly allocable to the qualified leave 
qualified sick and family leave compensation from Worksheet     compensation for which the credit is allowed. These qualified 
2, Step 2, line 2p.                                             health plan expenses are amounts paid or incurred by the 
                                                                employer to provide and maintain a group health plan but 
   The credit for qualified sick and family leave               only to the extent such amounts are excluded from the 
compensation consists of the:                                   employees' income as coverage under an accident or health 
•  Qualified sick leave compensation and/or qualified family    plan. The amount of qualified health plan expenses generally 
leave compensation;                                             includes both the portion of the cost paid by the employer 
•  Qualified health plan expenses allocable to qualified sick   and the portion of the cost paid by the employee with pre-tax 
and family leave compensation;                                  salary reduction contributions. However, qualified health plan 
•  Collectively bargained defined benefit pension plan          expenses don't include amounts that the employee paid for 
contributions, subject to the qualified leave compensation      with after-tax contributions. For more information, go to 
limitations, allocable to the qualified sick and family leave   IRS.gov/PLC.
compensation;
•  Collectively bargained apprenticeship program                Collectively bargained defined benefit pension plan 
contributions, subject to the qualified leave compensation      contributions. For purposes of qualified sick and family 
limitations, allocable to the qualified sick and family leave   leave compensation, collectively bargained defined benefit 
compensation; and                                               pension plan contributions are contributions for a calendar 
•  Tier 1 Employer tax and Tier 1 Employer Medicare tax         quarter:
allocable to the qualified sick and family leave compensation.  •    Paid or incurred by an employer on behalf of its employees 
                                                                to a defined benefit plan, as defined in section 414(j), which 
   The nonrefundable portion of the credit is limited to the    meets the requirements of section 401(a);
Tier 1 Employer Medicare tax (line 2) and Tier 1 Employer       •    Made based on a pension contribution rate; and

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• Required to be made under the terms of a collective
Line 17c—Nonrefundable Portion of
bargaining agreement in effect during the quarter.
Pension contribution rate. The pension contribution rate COBRA Premium Assistance Credit
is the contribution rate that the employer is obligated to pay
under the terms of a collective bargaining agreement to a Complete line 17c only if an eligible individual elects
defined benefit plan, as the rate is applied to contribution ! coverage in 2022 for periods of coverage beginning
base units, as defined by section 4001(a)(11) of the CAUTION on or after April 1, 2021, through periods of coverage
Employee Retirement Income Security Act of 1974 (ERISA). beginning on or before September 30, 2021, due to the
COBRA notice and election period requirements (generally,
Allocation rules. The amount of collectively bargained employers have 60 days to provide notice and assistance
defined benefit pension plan contributions allocated to eligible individuals have 60 days to elect coverage).
qualified sick leave compensation and/or qualified family
leave compensation during a quarter is the pension If an eligible individual elects coverage in 2022 for periods
contribution rate (expressed as an hourly rate) multiplied by of coverage beginning on or after April 1, 2021, through
the number of hours qualified sick leave compensation periods of coverage beginning on or before September 30,
and/or qualified family leave compensation was provided to 2021, enter the COBRA premium assistance that you
employees covered under the collective bargaining provided. You can claim the credit for a period of coverage
agreement during the quarter. once the individual elects COBRA continuation coverage,
and for any period of coverage beginning after the election,
Collectively bargained apprenticeship program contri-
as of the beginning of such period of coverage for which the
butions. For purposes of qualified sick and family leave
individual doesn't pay the premiums for the coverage. Don't
compensation, collectively bargained apprenticeship
include any amount that was included as qualified health plan
program contributions are contributions for a calendar
expenses allocable to qualified sick and family leave
quarter:
compensation. Enter the nonrefundable portion of the
• Paid or incurred by an employer on behalf of its employees
COBRA premium assistance credit from Worksheet 3, Step
to a registered apprenticeship program, which is an
2, line 2e. See COBRA background next for more information
apprenticeship registered under the National Apprenticeship
about COBRA.
Act of August 16, 1937, and meets the standards of Federal
Regulations under subpart A of Part 29 and Part 30 of title 29; COBRA background. The Consolidated Omnibus Budget
• Made based on an apprenticeship program contribution Reconciliation Act of 1985 (COBRA) provides certain former
rate; and employees, retirees, spouses, former spouses, and
• Required to be made under the terms of a collective dependent children the right to temporary continuation of
bargaining agreement in effect during the quarter. health coverage at group rates. COBRA generally covers
Apprenticeship program contribution rate. The multiemployer health plans and health plans maintained by
apprenticeship program contribution rate is the contribution private-sector employers (other than churches) with 20 or
rate that the employer is obligated to pay under the terms of a more full- and part-time employees. Parallel requirements
collective bargaining agreement for benefits under a apply to these plans under ERISA. Under the Public Health
registered apprenticeship program, as the rate is applied to Service Act, COBRA requirements also apply to health plans
contribution base units, as defined by section 4001(a)(11) of covering state or local government employees. Similar
ERISA. requirements apply under some state laws.
Allocation rules. The amount of collectively bargained
apprenticeship program contributions allocated to qualified Line 17d—Number of Individuals
sick leave compensation and/or qualified family leave Provided COBRA Premium
compensation in a quarter is the apprenticeship program
contribution rate (expressed as an hourly rate) multiplied by Assistance
the number of hours qualified sick leave compensation Enter the number of individuals provided COBRA premium
and/or qualified family leave compensation was provided to assistance for periods of coverage beginning on or after April
employees covered under the collective bargaining 1, 2021, through periods of coverage beginning on or before
agreement during the quarter. September 30, 2021. Count each assistance eligible
Highly compensated employee. A highly compensated individual that received assistance as one individual, whether
employee is an employee who meets either of the following or not the COBRA coverage was for insurance that covered
tests. more than one assistance eligible individual. For example, if
the coverage was for a former employee, spouse, and two
1. The employee was a 5% owner at any time during the children, you would include one individual on line 17d.
year or the preceding year. Further, each individual is reported only once per year. For
2. The employee received more than $130,000 in pay for example, an assistance eligible individual that received
the preceding year. assistance monthly is only reported as one individual.

You can choose to ignore test (2) if the employee wasn't Line 18—Total Nonrefundable Credits
also in the top 20% of employees when ranked by pay for the
Add lines 16, 17b, and 17c. Enter the total on line 18.
preceding year.
Line 19—Total Taxes After
Adjustments and Nonrefundable
Credits
Subtract line 18 from line 15 and enter the result on line 19.

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Line 20—Total Deposits for the Year Line 24c—Refundable Portion of
Enter the total Form CT-1 deposits for the year, including any COBRA Premium Assistance Credit
overpayment that you applied from filing Form CT-1 X and
any overpayment that you applied from your 2021 return. Complete line 24c only if an eligible individual elects
coverage in 2022 for periods of coverage beginning
Line 23—Refundable Portion of Credit CAUTION! on or after April 1, 2021, through periods of coverage
beginning on or before September 30, 2021, due to the
for Qualified Sick and Family Leave
COBRA notice and election period requirements (generally,
Compensation for Leave Taken After employers have 60 days to provide notice and assistance
eligible individuals have 60 days to elect coverage).
March 31, 2020, and Before April 1,
Enter the refundable portion of the COBRA premium
2021 assistance credit from Worksheet 3, Step 2, line 2f. The
Complete line 23 only if qualified sick leave refundable portion of the credit is allowed after the Tier 1
employer Medicare taxes from lines 2 and 9 are reduced to
! compensation and/or qualified family leave zero by nonrefundable credits.
CAUTION compensation was paid in 2022 for leave taken after
March 31, 2020, and before April 1, 2021.
Line 25—Total Deposits and
Certain private employers with fewer than 500 employees
that provide paid sick leave under the EPSLA and/or provide Refundable Credits
paid family leave under the Expanded FMLA are eligible to Add lines 20, 23, 24b, and 24c. Enter the total on line 25.
claim the credit for qualified sick and family leave
compensation. Enter the refundable portion of the credit for Line 28—Balance Due
qualified sick and family leave compensation from Worksheet If line 19 is more than line 25, enter the difference on line 28.
1, Step 2, line 2k. The credit for qualified sick and family Otherwise, see the instructions for line 29, later. You don't
leave compensation consists of the qualified sick leave have to pay if line 28 is under $1. Generally, you should have
compensation, the qualified family leave compensation, the a balance due only if your total railroad retirement taxes
qualified health plan expenses allocable to that based on compensation (line 19) are less than $2,500.
compensation, and the Tier 1 Employer Medicare tax However, see Accuracy of Deposits Rule, earlier, regarding
allocable to that compensation. The refundable portion of the payments made under the accuracy of deposits rule.
credit is allowed after the Tier 1 employer taxes from lines 1
and 8 are reduced to zero by nonrefundable credits. If you were required to make federal tax deposits, pay the
amount shown on line 28 by EFT. If you weren't required to
Line 24b—Refundable Portion of make federal tax deposits or you're a monthly schedule
depositor making a payment under the accuracy of deposits
Credit for Qualified Sick and Family rule, you may pay the amount shown on line 28 by EFT,
Leave Compensation for Leave Taken check, or money order. For more information on electronic
payment options, go to IRS.gov/Payments.
After March 31, 2021, and Before
If you pay by EFT, file your return using the address under
October 1, 2021 Where To File, earlier. Don't file Form CT-1(V), Payment
Complete line 24b only if qualified sick leave Voucher. If you pay by check or money order, make it
payable to “United States Treasury.” Enter your EIN, “Form
CAUTION compensation was paid in 2022 for leave taken after
! compensation and/or qualified family leave CT-1,” and “2022” on your check or money order. Complete
March 31, 2021, and before October 1, 2021. Form CT-1(V) and enclose with Form CT-1.

Employers with fewer than 500 employees and certain Line 29—Overpayment
governmental employers without regard to number of If line 25 is more than line 19, enter the difference on line 29.
employees (except for the federal government and its Never make an entry on both lines 29 and 28. If line 29 is
agencies and instrumentalities unless described in section less than $1, we will send you a refund or apply it to your next
501(c)(1)) are entitled to a credit if they provide paid sick return only if you ask us in writing to do so.
leave to employees that otherwise meets the requirements of
the EPSLA, as amended for purposes of the ARP, and/or If you deposited more than the correct amount for the
provide paid family leave to employees that otherwise meets year, you can have the overpayment refunded or applied to
the requirements under the Expanded FMLA, as amended your next return by checking the appropriate box on line 29.
for purposes of the ARP, for leave taken after March 31, Check only one box on line 29. If you don't check either box
2021, and before October 1, 2021. Enter the refundable or if you check both boxes, generally we will apply the
portion of the credit for qualified sick and family leave overpayment to your next return. Regardless of any boxes
compensation from Worksheet 2, Step 2, line 2q. The you check or don't check on line 29, we may apply your
refundable portion of the credit is allowed after the Tier 1 overpayment to any past due tax account that is shown in our
employer Medicare taxes from lines 2 and 9 are reduced to records under your EIN.
zero by nonrefundable credits.
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.

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        Complete lines 30–33 only if qualified sick leave 
                                                                      Line 36—Qualified Sick Leave 
!       compensation and/or qualified family leave 
CAUTION compensation was paid in 2022 for leave taken after           Compensation for Leave Taken After 
March 31, 2020, and before April 1, 2021.
                                                                      March 31, 2021, and Before October 
Line 30—Qualified Sick Leave                                          1, 2021
Compensation for Leave Taken After                                    Enter the qualified sick leave compensation you paid in 2022 
                                                                      to your employees for leave taken after March 31, 2021, and 
March 31, 2020, and Before April 1,                                   before October 1, 2021, including any qualified sick leave 
                                                                      compensation that was above the Tier 1 compensation base 
2021                                                                  and any qualified sick leave compensation excluded from the 
Enter the qualified sick leave compensation you paid in 2022          definition of compensation under section 3231(e)(1). See the 
to your employees for leave taken after March 31, 2020, and           instructions for line 17b, earlier, for more information about 
before April 1, 2021, including any qualified sick leave              qualified sick leave compensation for leave taken after March 
compensation that was above the Tier 1 compensation base              31, 2021, and before October 1, 2021. This amount is also 
and any qualified sick leave compensation excluded from the           entered on Worksheet 2, Step 2, line 2a.
definition of compensation under section 3231(e)(1). This 
amount is also entered on Worksheet 1, Step 2 , line 2a. See          Line 37—Qualified Health Plan 
the instructions for line 16 for information about the credit for 
qualified sick and family leave compensation for leave taken          Expenses Allocable to Qualified Sick 
after March 31, 2020, and before April 1, 2021. For more              Leave Compensation Reported on 
information about qualified sick leave compensation, go to 
IRS.gov/PLC.                                                          Line 36
                                                                      Enter the qualified health plan expenses allocable to qualified 
Line 31—Qualified Health Plan                                         sick leave compensation paid in 2022 for leave taken after 
Expenses Allocable to Compensation                                    March 31, 2021, and before October 1, 2021. This amount is 
                                                                      also entered on Worksheet 2, Step 2, line 2b.
Reported on Line 30
Enter the qualified health plan expenses allocable to qualified       Line 38—Amounts Under Certain 
sick leave compensation paid in 2022 for leave taken after            Collectively Bargained Agreements 
March 31, 2020, and before April 1, 2021. This amount is 
also entered on Worksheet 1, Step 2, line 2b.                         Allocable to Qualified Sick Leave 
Line 32—Qualified Family Leave                                        Compensation Reported on Line 36
                                                                      Enter the collectively bargained defined benefit pension plan 
Compensation for Leave Taken After                                    contributions and collectively bargained apprenticeship 
March 31, 2020, and Before April 1,                                   program contributions allocable to qualified sick leave 
                                                                      compensation paid in 2022 for leave taken after March 31, 
2021                                                                  2021, and before October 1, 2021. This amount is also 
Enter the qualified family leave compensation you paid in             entered on Worksheet 2, Step 2, line 2c.
2022 to your employees for leave taken after March 31,                        Complete lines 39, 40, and 41 only if qualified family 
2020, and before April 1, 2021, including any qualified family        !       leave compensation was paid in 2022 for leave taken 
leave compensation that was above the Tier 1 compensation             CAUTION after March 31, 2021, and before October 1, 2021.
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.          Line 39—Qualified Family Leave 
See the instructions for line 16 for information about the            Compensation for Leave Taken After 
credit for qualified sick and family leave compensation for 
leave taken after March 31, 2020, and before April 1, 2021.           March 31, 2021, and Before October 
For more information about qualified family leave                     1, 2021
compensation, go to IRS.gov/PLC.
                                                                      Enter the qualified family leave compensation you paid in 
Line 33—Qualified Health Plan                                         2022 to your employees for leave taken after March 31, 
                                                                      2021, and before October 1, 2021, including any qualified 
Expenses Allocable to Compensation                                    family leave compensation that was above the Tier 1 
                                                                      compensation base and any qualified family leave 
Reported on Line 32                                                   compensation excluded from the definition of compensation 
Enter the qualified health plan expenses allocable to qualified       under section 3231(e)(1). See the instructions for line 17b, 
family leave compensation paid in 2022 for leave taken after          earlier, for more information about qualified family leave 
March 31, 2020, and before April 1, 2021. This amount is              compensation for leave taken after March 31, 2021, and 
also entered on Worksheet 1, Step 2, line 2f.                         before October 1, 2021. This amount is also entered on 
        Complete lines 36, 37, and 38 only if qualified sick          Worksheet 2, Step 2, line 2g.
!       leave compensation was paid in 2022 for leave taken 
CAUTION after March 31, 2021, and before October 1, 2021.

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leave taken after March 31, 2020, and before April 1, 2021,
Line 40—Qualified Health Plan
that is remaining at the end of the year because it exceeds
Expenses Allocable to Qualified the Tier 1 employer taxes reported on Form CT-1, lines 1 and
8, is claimed on line 23 as a refundable credit. The
Family Leave Compensation refundable portion of the credit doesn’t reduce the liability
Reported on Line 39 reported on Part II or Form 945 A.‐
Enter the qualified health plan expenses allocable to qualified Example. Maple Co. is a monthly schedule depositor that
family leave compensation paid in 2022 for leave taken after pays employees every Friday. In 2022, Maple Co. had pay
March 31, 2021, and before October 1, 2021. This amount is dates every Friday of 2022 starting January 7, 2022. Maple
also entered on Worksheet 2, Step 2, line 2h. Co. paid qualified sick and family leave compensation on
March 11 and March 18 for leave taken after March 31, 2020,
Line 41—Amounts Under Certain and before April 1, 2021. The nonrefundable portion of the
credit for qualified sick and family leave compensation for the
Collectively Bargained Agreements year is $3,000. On Part II, Maple Co. will use the $3,000 to
Allocable to Qualified Family Leave reduce the liability for the January 7 pay date, but not below
zero. If any nonrefundable portion of the credit remains,
Compensation Reported on Line 39 Maple Co. applies it to the liability for the January 14 pay
Enter the collectively bargained defined benefit pension plan date, then the January 21 pay date, and so forth until the
contributions and collectively bargained apprenticeship entire $3,000 is used.
program contributions allocable to qualified family leave Nonrefundable portion of credit for qualified sick and
compensation paid in 2022 for leave taken after March 31, family leave compensation for leave taken after March
2021, and before October 1, 2021. This amount is also 31, 2021, and before October 1, 2021 (line 17b). The
entered on Worksheet 2, Step 2, line 2i. nonrefundable portion of the credit for qualified sick and
family leave compensation paid in 2022 for leave taken after
Part II. Record of Railroad Retirement March 31, 2021, and before October 1, 2021, is limited to the
Tax Liability Tier 1 employer Medicare tax reported on Form CT-1, lines 2
This is a summary of your yearly tax liability, not a summary and 9, on compensation paid during the year. In completing
of deposits made. If line 19 is less than $2,500, don't Part II or Form 945-A, you take into account the
complete Part II or Form 945-A. nonrefundable portion of the credit for qualified sick and
family leave compensation paid In 2022 against the liability
If you’re a monthly schedule depositor, enter your tax for the first payroll payment of the year, but not below zero.
liability for each month and figure the total liability for the Then reduce the liability for each successive payroll payment
year. If you don't enter your tax liability for each month, the of the year until the nonrefundable portion of the credit is
IRS won't know when you should have made deposits and used. Any credit for qualified sick and family leave
may assess an “averaged” FTD penalty. See section 11 of compensation paid in 2022 for leave taken after March 31,
Pub. 15. If your tax liability for any month is negative, don't 2021, and before October 1, 2021, that is remaining at the
enter a negative amount for the month. Instead, enter zero for end of the year because it exceeds the Tier 1 employer
the month and subtract that negative amount from your tax Medicare tax reported on Form CT-1, lines 2 and 9, is
liability for the next month. claimed on line 24b as a refundable credit. The refundable
Adjusting tax liability for nonrefundable credits claimed portion of the credit doesn't reduce the liability reported on
on lines 16, 17b, and 17c. Monthly schedule depositors Part II or Form 945-A.
and semiweekly schedule depositors must account for Nonrefundable portion of COBRA premium
nonrefundable credits claimed on lines 16, 17b, and 17c assistance credit (line 17c). The nonrefundable portion of
when reporting their tax liabilities on Part II or Form 945-A. the COBRA premium assistance credit is limited to the Tier 1
The total tax liability for the year must equal the amount employer Medicare tax reported on Form CT-1, lines 2 and 9,
reported on line 19. Failure to account for the nonrefundable on compensation paid during the year that is remaining after
credits on Part II or Form 945-A may cause Part II or Form that share is first reduced by any credit claimed on Form
945-A to report more than the total tax liability reported on CT-1, line 17b, for the nonrefundable portion of the credit for
line 19. Don't reduce your monthly tax liability reported on qualified sick and family leave compensation paid in 2022 for
Part II or your daily tax liability reported on Form 945-A below leave taken after March 31, 2021, and before October 1,
zero. 2021. In completing Part II or Form 945-A, you take into
Nonrefundable portion of credit for qualified sick and account the nonrefundable portion of the COBRA premium
family leave compensation for leave taken after March assistance credit against the liability for the first payroll
31, 2020, and before April 1, 2021 (line 16). The payment of the year, but not below zero. Then reduce the
nonrefundable portion of the credit for qualified sick and liability for each successive payroll payment of the year until
family leave compensation paid in 2022 for leave taken after the nonrefundable portion of the credit is used. Any COBRA
March 31, 2020, and before April 1, 2021, is limited to the premium assistance credit that is remaining at the end of the
Tier 1 employer taxes reported on Form CT-1, lines 1 and 8, year because it exceeds the Tier 1 employer Medicare tax
on compensation paid in the year. In completing Part II or reported on Form CT-1, lines 2 and 9, is claimed on line 24c
Form 945 A, you take into account the nonrefundable portion ‐ as a refundable credit. The refundable portion of the credit
of the credit for qualified sick and family leave compensation doesn't reduce the liability reported on Part II or Form 945-A.
paid in 2022 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 portion of the credit is used. Any credit for
qualified sick and family leave compensation paid in 2022 for

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You may reduce your deposits by the amount of the • Sole proprietorship—The individual who owns the
TIP nonrefundable and refundable portions of the credit business.
for qualified sick and family leave compensation, and • Corporation (including a limited liability company
the nonrefundable and refundable portions of the COBRA (LLC) treated as a corporation)—The president, vice
premium assistance credit, as discussed earlier under president, or other principal officer duly authorized to sign.
Reducing your deposits for COVID-19 credits. • Partnership (including an LLC treated as a
partnership) or unincorporated organization —A
The amount shown on line V must equal the amount responsible and duly authorized partner, member, or officer
! shown on line 19. having knowledge of its affairs.
CAUTION • Single-member LLC treated as a disregarded entity
If you’re a semiweekly schedule depositor or if you for federal income tax purposes—The owner of the LLC
accumulate $100,000 or more in tax liability on any day in a or a principal officer duly authorized to sign.
deposit period, you must complete Form 945-A and file it with • Trust or estate—The fiduciary.
Form CT-1. Don't complete lines I–V if you file Form 945-A. Form CT-1 may also be signed by a duly authorized agent
The $100,000 tax liability threshold requiring a next-day of the taxpayer if a valid power of attorney has been filed.
deposit is determined before you consider any reduction of
your liability for nonrefundable credits. For more information, Alternative signature method. Corporate officers or duly
including an example, see frequently asked question 17 at authorized agents may sign Form CT-1 by rubber stamp,
IRS.gov/ETD. mechanical device, or computer software program. For
details and required documentation, see Rev. Proc. 2005-39,
Third-Party Designee 2005-28 I.R.B. 82, available at IRS.gov/irb/
If you want to allow an employee of your business, a return 2005-28_IRB#RP-2005-39.
preparer, or another third party to discuss your Form CT-1
with the IRS, check the “Yes” box in the Third-Party Designee Paid Preparer Use Only
section. Also, enter the designee's name, phone number, A paid preparer must sign Form CT-1 and provide the
and any five digits that person chooses as their personal information in the Paid Preparer Use Only section of Part I if
identification number (PIN). the preparer was paid to prepare Form CT-1 and isn't an
employee of the filing entity. The preparer must give you a
By checking “Yes” you authorize the IRS to talk to the
copy of the return in addition to the copy to be filed with the
person you named (your designee) about any questions we
IRS.
may have while we process your return. You also authorize
your designee to do all of the following. If you're a paid preparer, enter your Preparer Tax
• Give us any information that is missing from your return. Identification Number (PTIN) in the space provided. Include
• Call us for information about processing your return. your complete address. If you work for a firm, enter the firm's
• Respond to certain IRS notices that you have shared with name and the EIN of the firm. You can apply for a PTIN
the designee about math errors and return preparation. The online or by filing Form W-12. For more information about
IRS won't send notices to your designee. applying for a PTIN online, go to IRS.gov/PTIN. You can't use
You’re not authorizing the designee to receive any refund your PTIN in place of the EIN of the tax preparation firm.
check, bind you to anything (including additional tax liability), Generally, you’re not required to complete this section if
or otherwise represent you before the IRS. If you want to you’re filing the return as a reporting agent and have a valid
expand the designee's authority, see Pub. 947. Form 8655 on file with the IRS. However, a reporting agent
The authorization will automatically expire 1 year from the must complete this section if the reporting agent offered legal
due date (without regard to extensions) for filing your Form advice, for example, by advising the client on determining
CT-1. If you or your designee wants to revoke this whether its workers are employees or independent
authorization, send the revocation or withdrawal to the IRS contractors for federal tax purposes.
office at which you file your Form CT-1.

Who Must Sign
The following persons are authorized to sign the return for
each type of business entity.

Instructions for Form CT-1 (2022) -17-

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Worksheet 1. Credit for Qualified Sick and Family Leave 
Compensation Paid in 2022 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 
2022 for leave taken after March 31, 2021, and before October 1, 2021.

Step 1.        Figure the Tier 1 Employer Tax
        1a     Enter the amount from Form CT-1, line 1 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . .                           1a      
        1b     Enter the amount from Form CT-1, line 8 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . .                           1b      
        1c     Tier 1 Employer tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             1c  

Step 2.        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     Credit for qualified sick leave compensation. Add lines 2a, 2b, and 2c . . . . . . . .                                               2d  
        2e     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                                         2e(i)
               definition of compensation under section 3231(e)(1) . . . . . . . . . . . . . . . . . . . . . . . . .                                
        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     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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2i  
        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

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Worksheet 2. Credit for Qualified Sick and Family Leave 
Compensation Paid in 2022 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 2022 for leave 
taken after March 31, 2020, and before April 1, 2021.
Step 1.         Figure the Tier 1 Employer Medicare Tax
        1a      Enter the amount from Form CT-1, line 2 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . . . .                         1a       
        1b      Enter the amount from Form CT-1, line 9 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . . . .                         1b       
        1c      Tier 1 Employer Medicare tax. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . .                                   1c              
Step 2.         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      Tier 1 Employer tax on qualified sick leave compensation. Multiply line 2a(iv) by 6.2% 
                (0.062)  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2d       
        2e      Tier 1 Employer Medicare tax on qualified sick leave compensation. Multiply line 2a(ii) by 
                1.45% (0.0145)    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2e       
        2f      Credit for qualified sick leave compensation. Add lines 2a, 2b, 2c, 2d, and 2e . . . . . .                                              2f  
        2g      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      Credit for qualified family leave compensation. Add lines 2g, 2h, 2i, 2j, and 2k   . . . . .                                            2l  
        2m      Credit for qualified sick and family leave compensation. Add lines 2f and 2l . . . . . . .                                              2m  
        2n      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      Credit for qualified sick and family leave compensation after adjusting for other 
                credits. Subtract line 2n from line 2m  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       2o  
        2p      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 . . . . . . . . . . . . . . . . . . . . . .                                2p
        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 . . . . . . . . . . . . . . . . . . . . . . . . . .                                2q

Instructions for Form CT-1 (2022)                                    -19-

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Worksheet 3. COBRA Premium Assistance Credit                                                                                               Keep for Your Records
Determine how you will complete this worksheet.
If you provided COBRA premium assistance, complete Step 1 and Step 2. If you’re claiming the credit for qualified sick and family leave compensation 
for leave taken after March 31, 2021, and before October 1, 2021, complete Worksheet 2 before starting this worksheet.
Step 1.    Figure the Tier 1 Employer Medicare Tax
        1a If you completed Worksheet 2, enter the amount from Worksheet 2, Step 1, line 1c. If 
           you’re not claiming this credit this year, continue by completing lines 1b–1d below and then 
           go to Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1a                   
        1b Enter the amount from Form CT-1, line 2 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . . . .                       1b  
        1c Enter the amount from Form CT-1, line 9 (Tax Column) . . . . . . . . . . . . . . . . . . . . . . . . .                       1c  
        1d Tier 1 Employer Medicare tax. Add lines 1b and 1c . . . . . . . . . . . . . . . . . . . . . . . . . .                            1d                   

Step 2.    Figure the COBRA premium assistance credit
        2a Enter the COBRA premium assistance that you provided for periods of coverage beginning 
           on or after April 1, 2021, through periods of coverage beginning on or before September 
           30, 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a  
        2b Enter the amount of the Tier 1 Employer Medicare tax from Step 1, line 1a, or, if applicable, 
           Step 1, line 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2b  
        2c Enter the amount of the nonrefundable portion of the credit for qualified sick and family 
           leave compensation for leave taken after March 31, 2021, and before October 1, 2021, 
           from Worksheet 2, Step 2, line 2p . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2c  
        2d Subtract line 2c from line 2b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2d  
        2e Nonrefundable portion of the COBRA premium assistance credit. Enter the smaller 
           of line 2a or line 2d. Enter this amount on Form CT-1, line 17c . . . . . . . . . . . . . . . . . . . .                          2e
        2f Refundable portion of the COBRA premium assistance credit. Subtract line 2e from 
           line 2a and enter this amount on Form CT-1, line 24c . . . . . . . . . . . . . . . . . . . . . . . . . . .                       2f

                                                     -20-                                                                               Instructions for Form CT-1 (2022)

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