Your first step is to obtain a taxpayer identification number (EIN) from the IRS (form SS-4) and a file number from the Department of Labor (LM-1). If your system committee is not newly formed, please be sure that one is not already issued to your committee.
Once you have obtained the EIN, your next step is to open a checking account to deposit the system funds in. Choose a bank that accepts IRS (941) and RRB (CT-1) deposits. Most do, but check to be sure.
Next you will need to determine how you are to keep records of the system fund transactions. While the paper ledger book is an option, we suggest a computer based program such as microsoft money, quickbooks or Peachtree accounting. You may also use the new ATDA payroll program to calculate payroll amounts and related IRS and RRB form entries. All incoming and outgoing transactions must be recorded. At this time it would be a good idea to obtain a file cabinet to store your records.
While record keeping is the most important duty of the treasurer, payroll is also very important. Once the gross amounts due each employee are determined, you must calculate the deductions for the IRS, RRB and any state or city taxes required. You must secure state and city taxing information from those authorities.
Use the forms listed below to calculate deductions from the gross amount due the employee. Each employee must complete form W-4 and return to you to determine deductions for federal income tax. Publication 15 (IRS form number 10000W) provides deduction amounts based on W-4 information.
Now that you have the proper amounts deducted from the gross, you are ready to issue the checks. Be sure to include deduction amounts on the employee check stub.
In many cases, federal income tax payments may be made quarterly along with the form. If your FIT amount exceeds $2,500.00 for the quarter you must make monthly deposits at your bank by the 15th of the month following the month in which payroll was processed. Railroad retirement payments are similar. if your total taxes owed for the year are less than $2500.00, you may make payments with the annual CT-1 form.
At the end of each quarter, you must submit form OE-1A to the national office to properly credit employees for their railroad retirement contributions.
Before handling any system funds or property, you must determine bonding amounts and ensure that each officer handling system funds or property is properly bonded. If your total yearly receipts are less than $5,000.00, contact the Secretary-Treasurer for requirements.
There are many other documents that you should be famaliar with as a System Treasurer.
At the end of each fiscal year (June 30), you must file the appropriate LM form with the Department of Labor (DOL). It is reccomended that you file electronically, however if you cannot do so, you may use the on-line forms to fill out your report, then print and mail to the DOL.
A system semi-annual report must be filed twice each year.
They are due at the national office before July 30 (reporting for January 1 through June 30) and before January 30 (reporting for July 1 through December 31).
This guide for ATDA System Treasurers is intended to help system treasuers start and maintain system funds. Please contact the National Secretary Treasurer for more specific information and any help you may need. To view the documents linked in this page, you will need Adobe Acrobat (free download from the Adobe web page (www.ADOBE.COM)
W-2s must be calculated and sent to the system employees at the close of each calendar year. Software and forms may be purchased at your local office supply store such as Office Depot or Office Max. You process W-2 and W-3 forms electronically. For more information, CLICK HERE
If you have any questions or need reporting forms, please call me at 216-241-2770.or leave E-mail at atddglm@aol.com.
Gary Melton
Secretary Treasurer
It is required that System Committees file OE1-a and semi-annual reports with the National/Secretary Treasurer. It is also required that System Treasurers provide copies of 941, 944, CT-1, 990 and LM 3 or LM4 forms to the National Secretary/Treasurer.
Form 990, 990EX or 990N (electronic postcard) are due each year by November 15 for the reporting year ending on June 30. Instruction and examples of forms can be accessed below.
