Railroad employees save taxes after Supreme Court ruling

Railroad employees save taxes after Supreme Court ruling

Posted: September 25th, 2018 | Author: | Filed under: Callahan Financial Planning |

A recent Supreme Court ruling provides potential tax savings for railroad employees. Wisconsin Central Ltd. v. United States holds that stock-based compensation provided to railroad employees is exempt from federal employment taxes. According to the 5-4 ruling, for employees of railroad companies such as Union Pacific and BNSF, stock option income is not considered money remuneration under the Railroad Retirement Act (RRTA) and, therefore, not subject to payroll taxes.

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