On June 24, the IRS released its 2020 Internal Revenue Service Data Book, which provides statistics that underscore the importance of payroll professionals to the integrity of the American tax system [IRS Pub. 55B, rev. June 2021].
Primary Sources of Federal Revenue
The IRS Data Book reports that, of the approximately $3.49 trillion paid into the Treasury in fiscal year 2020, nearly $2.47 trillion was transmitted by employers for employment taxes. This represents 70.65% of all federal revenue.
Payroll payments included:
- $1.27 trillion in withheld individual income taxes
- $1.19 trillion in employer and employee FICA (social security and Medicare) taxes
- $6.3 billion in unemployment insurance tax
- $5.2 billion in Railroad Retirement Tax Act taxes
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.