Brush Up on Your Payroll Knowledge for National Payroll Week
Celebrating America’s 150 million wage earners and the payroll professionals who pay them
September 4-8, 2017, is National Payroll Week, kicking off on Labor Day. The celebration calls out the economic, cultural, and social achievements of workers, and the significance of “an honest day’s work for an honest day’s pay.”
National Payroll Week is the perfect time to mention a number of facts and figures that highlight America’s workers, their companies, the payroll professionals who pay them, and critical government programs such as Social Security, Medicare, and child support.
Did you know:
- Together, America’s 150 million wage earners and the payroll professionals who pay them through the payroll withholding system contribute, collect, report, and deposit approximately $2.2 trillion, or 67 percent, of the annual revenue of the U.S. Treasury.
- Forty-two states require personal income tax (PIT) withholding:
- In 2016, 21 states (50 percent) made changes to their PIT withholding calculations.
- In 2017 (to date), 25 states (60 percent) made changes to their PIT withholding calculations.
- Seven states — Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming — have no state income tax. New Hampshire doesn’t tax wage income, but does tax residents’ dividend and interest income. Tennessee residents don't have to file a return to pay taxes on wages, but pay state taxes on dividend and interest income.
- All states and Washington, D.C. require employers to pay some level of unemployment insurance tax on wages paid to their employees.
- For 2017 (to date), in addition to federal Form W-2 from the Internal Revenue Service (IRS), which requires employers to report workers’ wage and salary information, 35 state agencies will require W-2s and/or annual reconciliations to be filed by January 31, 2018.
- The first federal minimum wage took effect in 1938, and was 25 cents.
- In 1935, President Franklin D. Roosevelt raised the top tax rate to 79 percent for those making over $5 million. This applied to only one person in the United States: John D. Rockefeller.
- Sixty-six percent of Americans would experience financial difficulty if their paychecks were delayed one week.
- The term “check” comes from the game of chess.
- The United States is the only industrialized nation that taxes its citizens who live overseas, even if their income is generated in a foreign country and they have no plans to return to the United States.
- For tax year 2016, Paychex filed 11.6 million W-2s on behalf of its clients that included a W-2 verification code.
- Americans spend over $27.7 billion every year doing their taxes.
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About the Author
Kimberley Kesselring, Paychex Payroll Tax Compliance Manager
Kim started with Paychex in 1991 and joined the Compliance Risk organization in 2002. She currently leads a team that is responsible for payroll tax compliance, which includes fostering and maintaining agency relationships with all federal, state, and local taxing authorities. Her team analyzes the impact for all legislative/regulatory changes in the payroll tax environment, and ensures any necessary changes are appropriately addressed.
Kim received her BS in Business Administration from Nazareth College in 1990.
NOTE: All state information provided is based on 51 states (includes District of Columbia) and does not include Puerto Rico or the U.S. Virgin Islands.