Union Pacific Wins $75M Employment Tax Refund Suit on Appeal

Union Pacific Railroad Co. wasn’t required to pay $75 million in taxes under the Railroad Retirement Tax Act, a federal appeals court ruled.

The RRTA didn’t require the Omaha-based transport company to pay taxes when it paid its employees in stock or made ratification payments to its union workers, the U.S. Court of Appeals for the Eighth Circuit decided Aug. 1, reversing a federal district court ruling (Union Pac. R.R. Co. v. United States, 8th Cir., No. 16-3574, 8/1/17).

Rail carriers and their employees aren’t subject to Federal Insurance Contributions ...