The IRS released its 2024 Internal Revenue Service Data Book, which provides statistics that underscore the importance of payroll professionals to the integrity of the American tax system [IRS, IR-2025-63, 5-29-25].
In 2024, the IRS collected approximately $5.1 trillion in gross revenues, generating about 96% of the funding that supports the federal government’s operations.
Employment Taxes Are Primary Source
The IRS Data Book reports that, of the approximately $5.1 trillion paid into the Treasury in fiscal year 2024 (October 1, 2023 – September 30, 2024), more than $3.3 trillion was transmitted by employers for employment taxes. This represents 66% of all federal revenue.
Payroll payments included: $1.8 trillion in withheld individual income taxes, $1.55 trillion in employer and employee FICA (social security and Medicare) taxes, $8.13 billion in unemployment insurance tax, and $6.93 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!
Rayna Alexander, Esq., is Editor of Payroll Information Resources for PayrollOrg.
