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IRS Data Affirms Payroll’s Vital Role in Nation’s Tax System

BY: APA Staff | 05/23/19

On May 20, the IRS released its 2018 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. May 2019].

Primary Source of Federal Revenue

The IRS Data Book reports that, of the $3.47 trillion paid into the Treasury in FY 2018, $2.42 trillion was transmitted by employers for employment taxes. This represents nearly 70% of all federal revenue.

Payroll payments included:

  • $1.35 trillion in withheld individual income taxes
  • $1.05 trillion in employer and employee FICA (social security and Medicare) taxes
  • $8.8 billion in unemployment insurance tax
  • $6.3 billion in Railroad Retirement Tax Act taxes

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