Can anyone explain why they get to take out RRB Tier I and II, from the severance package payout if we aren’t RR ee’s anymore? When it doesn’t count towards our service? Does anyone know?? Thanks for the info.
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Hey guys. Sorry for the stress you are having. I might offer some clarification on the RRB taxes. Each month you work you get one month of service credit. If you receive a buy out, and leave, your last month working will get all the buyout money and if you have not already paid in up to the maximum of about $21,000 for tier one, tier two and medicare, for that year, then they take out up to that max. Example. You work six months, and made $50k you would have paid your rrb taxes on that amount or only about 40% of the max for tier one (slightly different amount for tier two) but any buyout (say for giggles its $75,000) you would now have to pay the remaining rrb tax up to the annual max. withholding. Hope that helps
I understand them taking it out, but since they are we should get credited for the additional months of service.
Then take out SS and medicare...we don’t work for the RR anymore.
Yeah it's called getting F.....d over make sure you request your deserved vacation days before the 15th...
The same reason being if you worked for a different company they would still take out Medicare and Social Security.