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